CVS Health (CVS) Stock Analysis
NYQ · Healthcare · Healthcare Plans
$89.96
+0.83 (+0.94%)
CVS Interactive Price Chart & Trading Signals
CVS Stock Snapshot — Valuation, Risk & Technical Signals
CVS Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$115.06B
P/E Ratio
23.74
Forward P/E
10.55
PEG Ratio
0.21
P/B Ratio
1.44
EPS
$3.79
Dividend Yield
2.98%
52W Range
$69.51 – $110.68
Beta
0.58
Volume
0.5M
ROE
6.2%
Profit Margin
1.2%
Revenue Growth
7.1%
Gross Margin
13.6%
EV/EBITDA
10.58
Analyst Target
$116.28
The trailing price-to-earnings ratio stands at 23.7x. Forward P/E of 10.5x implies earnings expansion expected. Price-to-book is 1.44x. EV/EBITDA sits at 10.58x. Market capitalization is $115.06B. Revenue is growing at 7.1% on a trailing basis. Earnings are expanding at 188.8%. Profit margins are 1.2%. Return on equity is 6.2%. Beta of 0.58 indicates defensive profile.
Analyst Consensus
Recommendation
Strong Buy
Low Target
$103.00
Mean Target
$116.28
High Target
$148.00
Based on 25 analysts
About CVS Health
CVS Health Corporation provides health solutions in the United States. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental, and behavioral health plans; medical management capabilities; Medicare Advantage and Medicare Supplement plans; prescription drug plans (PDPs); and Medicaid health care management services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail-order pharmacy, clinical services, disease management, medical spend management services, and pharmacy and other administrative services. It serves employers, insurance companies, unions, government employee groups, health plans, PDPs, Medicaid managed care plans, CMS, plans offered on public health insurance exchanges, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, personal care products, and other general merchandise products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, retail specialty pharmacy stores, and compounding pharmacies, as well as branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island.
CVS Deep Dive Analysis
Bottom Line
Verdict
UndervaluedBest for
Value-oriented investorsWatch out for
None flaggedNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
CVS Health Corporation (CVS) trades below our multi-model fair value estimate of $166.91 by approximately 85.5%. Trailing P/E: 23.7x. Profitability signals include profit margin of 1.2% and return on equity of 6.2%. Recent growth metrics show revenue growth of 7.1% and earnings growth of 188.8%. Risk profile: defensive beta of 0.58. Consensus: strong_buy.
Valuation, Growth & Risk
Valuation
Undervalued
P/E 23.7x
Price sits below our estimate of fair value.
Growth
Expanding
Rev 7.1%
Revenue is outpacing the market.
Risk
Low
Beta 0.58
Movement is likely to track the broader market.
Valuation Snapshot
CVS Health Corporation (CVS) trades below our multi-model fair value estimate of $166.91 by approximately 85.5%. The trailing price-to-earnings ratio stands at 23.7x. Forward P/E of 10.5x suggests earnings compression ahead. Price-to-sales is 0.3x. Price-to-book is 1.4x. EV/EBITDA sits at 10.6x. Market capitalization is $115.06B.
Why it matters: Buying below fair value can create a margin of safety, but always check earnings quality.
Growth & Profitability
Revenue is growing at 7.1% on a trailing basis. Earnings are expanding at 188.8%. Profit margins are 1.2%. Return on equity is 6.2%. Return on assets is 3.0%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.58 indicates defensive profile. Net debt position is $62.35B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $116.28 implies 29.3% upside. Target range spans $103.00 to $148.00. 25 analysts cover the stock. Consensus recommendation: strong_buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
The combination of undervaluation and moderate risk may suit value-oriented investors. Free cash flow yield of 6.8% is attractive for cash-flow-focused investors.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
CVS Undervalued
CVS Health Corporation (CVS) trades below our multi-model fair value estimate of $166.91 by approximately 85.5%.
Frequently Asked Questions
ValuationIs CVS stock overvalued right now?
ValuationWhat is CVS fair value based on current fundamentals?
RiskHow risky is CVS compared with other stocks?
GrowthIs CVS still growing?
AnalystWhat do analysts think about CVS?
DividendDoes CVS pay a dividend?
CatalystWhat could change the investment case for CVS?
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.