CAH Relative Valuation
CAH's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CAH is overvalued; if below, it's undervalued.
Historical Valuation
Cardinal Health Inc (CAH) is now in the Overvalued zone, suggesting that its current forward PE ratio of 20.03 is considered Overvalued compared with the five-year average of 12.83. The fair price of Cardinal Health Inc (CAH) is between 105.20 to 147.08 according to relative valuation methord. Compared to the current price of 199.00 USD , Cardinal Health Inc is Overvalued By 35.3%.
Relative Value
Fair Zone
105.20-147.08
Current Price：199.00
35.3%
Overvalued
19.98
PE
1Y
3Y
5Y
Trailing
Forward
13.15
EV/EBITDA
Cardinal Health Inc. (CAH) has a current EV/EBITDA of 13.15. The 5-year average EV/EBITDA is 8.67. The thresholds are as follows: Strongly Undervalued below 5.55, Undervalued between 5.55 and 7.11, Fairly Valued between 10.24 and 7.11, Overvalued between 10.24 and 11.80, and Strongly Overvalued above 11.80. The current Forward EV/EBITDA of 13.15 falls within the Strongly Overvalued range.
15.08
EV/EBIT
Cardinal Health Inc. (CAH) has a current EV/EBIT of 15.08. The 5-year average EV/EBIT is 10.12. The thresholds are as follows: Strongly Undervalued below 6.70, Undervalued between 6.70 and 8.41, Fairly Valued between 11.83 and 8.41, Overvalued between 11.83 and 13.54, and Strongly Overvalued above 13.54. The current Forward EV/EBIT of 15.08 falls within the Strongly Overvalued range.
0.18
PS
Cardinal Health Inc. (CAH) has a current PS of 0.18. The 5-year average PS is 0.11. The thresholds are as follows: Strongly Undervalued below 0.06, Undervalued between 0.06 and 0.08, Fairly Valued between 0.13 and 0.08, Overvalued between 0.13 and 0.15, and Strongly Overvalued above 0.15. The current Forward PS of 0.18 falls within the Strongly Overvalued range.
14.42
P/OCF
Cardinal Health Inc. (CAH) has a current P/OCF of 14.42. The 5-year average P/OCF is 10.26. The thresholds are as follows: Strongly Undervalued below 1.18, Undervalued between 1.18 and 5.72, Fairly Valued between 14.80 and 5.72, Overvalued between 14.80 and 19.34, and Strongly Overvalued above 19.34. The current Forward P/OCF of 14.42 falls within the Historic Trend Line -Fairly Valued range.
17.00
P/FCF
Cardinal Health Inc. (CAH) has a current P/FCF of 17.00. The 5-year average P/FCF is 12.80. The thresholds are as follows: Strongly Undervalued below 0.59, Undervalued between 0.59 and 6.69, Fairly Valued between 18.90 and 6.69, Overvalued between 18.90 and 25.01, and Strongly Overvalued above 25.01. The current Forward P/FCF of 17.00 falls within the Historic Trend Line -Fairly Valued range.
Cardinal Health Inc (CAH) has a current Price-to-Book (P/B) ratio of -16.51. Compared to its 3-year average P/B ratio of -9.51 , the current P/B ratio is approximately 73.54% higher. Relative to its 5-year average P/B ratio of -5.70, the current P/B ratio is about 189.64% higher. Cardinal Health Inc (CAH) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 9.97%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 10.63% , the current FCF yield is about -100.00% lower.
-16.47
P/B
Median3y
-9.51
Median5y
-5.70
9.38
FCF Yield
Median3y
9.97
Median5y
10.63
Competitors Valuation Multiple
The average P/S ratio for CAH's competitors is 0.00, providing a benchmark for relative valuation. Cardinal Health Inc Corp (CAH) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 22.44%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CAH increased by 68.42% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 19.12 to 30.06.
The secondary factor is the Revenue Growth, contributed 22.44%to the performance.
Overall, the performance of CAH in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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