Based on the provided data, I'll analyze whether CAH is overvalued through multiple valuation metrics and recent performance.
Valuation Analysis:
CAH's forward P/E has significantly improved from 49.53 in Q3 2024 to 22.02 in Q2 2025, indicating more reasonable valuation levels. The EV/EBITDA ratio remains stable around 10x, which is moderate for the healthcare distribution sector.
Financial Performance:
Revenue has remained relatively stable around $52-55 billion quarterly, while net income has shown significant improvement from $258M in Q3 2024 to $400M in Q2 2025. The gross margin has maintained steady at around 3.3-3.5%, showing operational stability.
Recent Analyst Actions:
Multiple analysts have upgraded CAH recently, with Jefferies raising the price target to $150 from $140 on February 5, 2025. Wells Fargo and JP Morgan also raised their targets to $136 and $145 respectively.
Conclusion:
CAH is not overvalued at current levels given its improving earnings profile, stable margins, and strong analyst support. The forward P/E of 22x is reasonable considering the company's improving fundamentals and strategic growth initiatives.