CVS Relative Valuation
CVS'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, CVS is overvalued; if below, it's undervalued.
Historical Valuation
CVS Health Corp (CVS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.86 is considered Undervalued compared with the five-year average of 10.16. The fair price of CVS Health Corp (CVS) is between 81.29 to 97.12 according to relative valuation methord. Compared to the current price of 76.75 USD , CVS Health Corp is Undervalued By 5.58%.
Relative Value
Fair Zone
81.29-97.12
Current Price：76.75
5.58%
Undervalued
11.11
PE
1Y
3Y
5Y
Trailing
Forward
9.74
EV/EBITDA
CVS Health Corp. (CVS) has a current EV/EBITDA of 9.74. The 5-year average EV/EBITDA is 9.07. The thresholds are as follows: Strongly Undervalued below 7.32, Undervalued between 7.32 and 8.19, Fairly Valued between 9.94 and 8.19, Overvalued between 9.94 and 10.82, and Strongly Overvalued above 10.82. The current Forward EV/EBITDA of 9.74 falls within the Historic Trend Line -Fairly Valued range.
11.22
EV/EBIT
CVS Health Corp. (CVS) has a current EV/EBIT of 11.22. The 5-year average EV/EBIT is 10.50. The thresholds are as follows: Strongly Undervalued below 8.40, Undervalued between 8.40 and 9.45, Fairly Valued between 11.56 and 9.45, Overvalued between 11.56 and 12.61, and Strongly Overvalued above 12.61. The current Forward EV/EBIT of 11.22 falls within the Historic Trend Line -Fairly Valued range.
0.23
PS
CVS Health Corp. (CVS) has a current PS of 0.23. The 5-year average PS is 0.30. The thresholds are as follows: Strongly Undervalued below 0.13, Undervalued between 0.13 and 0.21, Fairly Valued between 0.39 and 0.21, Overvalued between 0.39 and 0.47, and Strongly Overvalued above 0.47. The current Forward PS of 0.23 falls within the Historic Trend Line -Fairly Valued range.
9.16
P/OCF
CVS Health Corp. (CVS) has a current P/OCF of 9.16. The 5-year average P/OCF is 8.88. The thresholds are as follows: Strongly Undervalued below 4.05, Undervalued between 4.05 and 6.46, Fairly Valued between 11.29 and 6.46, Overvalued between 11.29 and 13.70, and Strongly Overvalued above 13.70. The current Forward P/OCF of 9.16 falls within the Historic Trend Line -Fairly Valued range.
13.71
P/FCF
CVS Health Corp. (CVS) has a current P/FCF of 13.71. The 5-year average P/FCF is 10.64. The thresholds are as follows: Strongly Undervalued below 5.80, Undervalued between 5.80 and 8.22, Fairly Valued between 13.06 and 8.22, Overvalued between 13.06 and 15.48, and Strongly Overvalued above 15.48. The current Forward P/FCF of 13.71 falls within the Overvalued range.
CVS Health Corp (CVS) has a current Price-to-Book (P/B) ratio of 1.31. Compared to its 3-year average P/B ratio of 1.19 , the current P/B ratio is approximately 10.09% higher. Relative to its 5-year average P/B ratio of 1.36, the current P/B ratio is about -4.21% higher. CVS Health Corp (CVS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 10.31%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 11.22% , the current FCF yield is about -100.00% lower.
1.34
P/B
Median3y
1.19
Median5y
1.36
6.61
FCF Yield
Median3y
10.31
Median5y
11.22
Competitors Valuation Multiple
The average P/S ratio for CVS's competitors is , providing a benchmark for relative valuation. CVS Health Corp Corp (CVS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 7.80%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CVS increased by 74.93% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 3.56 to 207.01.
The secondary factor is the Revenue Growth, contributed 7.80%to the performance.
Overall, the performance of CVS in the past 1 year is driven by P/E Change. Which is more unsustainable.
People Also Watch
FAQ
Is CVS Health Corp (CVS) currently overvalued or undervalued?
What is CVS Health Corp (CVS) fair value?
How does CVS's valuation metrics compare to the industry average?
What is the current P/B ratio for CVS Health Corp (CVS) as of Dec 05 2025?
What is the current FCF Yield for CVS Health Corp (CVS) as of Dec 05 2025?
What is the current Forward P/E ratio for CVS Health Corp (CVS) as of Dec 05 2025?