CVS Health Corp. (CVS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+284.7%

$340.69

vs $88.55 price

Levered DCF

$242.24

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.45

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	56.69×	12.27×	12.17×	28.33×	17.19×	12.46×	14.57×	-114.95×
P/B	1.34×	0.75×	1.33×	1.71×	1.81×	1.29×	1.51×	1.17×
P/S	0.25×	0.15×	0.28×	0.38×	0.47×	0.33×	0.38×	0.35×
EV / EBITDA	18.82×	9.56×	9.49×	14.58×	11.56×	9.73×	10.97×	20.43×
Gross margin	13.8%	13.8%	15.2%	16.9%	17.8%	18.3%	17.7%	16.2%
Operating margin	2.6%	2.3%	3.8%	2.5%	4.6%	5.2%	4.7%	2.1%
Net margin	0.4%	1.2%	2.3%	1.3%	2.7%	2.7%	2.6%	-0.3%
Current ratio	0.84×	0.81×	0.86×	0.95×	0.88×	0.91×	0.94×	1.03×
Debt / equity	1.24×	1.1×	1.04×	0.99×	1.01×	1.23×	1.39×	1.26×
Interest coverage	3.33×	2.88×	5.17×	3.48×	5.32×	4.79×	3.95×	1.54×
Dividend yield	3.4%	6.0%	3.1%	2.4%	1.9%	2.9%	2.7%	3.0%
Payout ratio	192.1%	73.1%	37.5%	67.4%	32.8%	36.6%	39.2%	-343.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	2.4%	6.1%	10.9%	6.0%	10.7%	10.3%	10.4%	-1.0%
Return on invested capital	4.7%	3.6%	5.9%	3.6%	5.9%	5.8%	5.1%	-1.1%
Return on assets	0.7%	1.8%	3.3%	1.9%	3.4%	3.1%	3.0%	-0.3%
Free cash flow yield	7.8%	11.2%	10.2%	11.0%	11.6%	15.0%	10.8%	10.0%
Earnings yield	1.8%	8.2%	8.2%	3.5%	5.9%	8.0%	6.9%	-0.9%
Enterprise value	$185.6B	$130.9B	$172.7B	$180.1B	$202.7B	$166.6B	$180B	$137.8B
Net debt / EBITDA	8.63×	5.43×	3.91×	4.68×	3.8×	4.51×	5.08×	10.29×
Cash conversion cycle (days)	-6	38	40	37	38	42	40	50