Cardinal Health provides pharmaceutical and medical products and services that help pharmacies, hospitals and other healthcare providers focus on patient care. The company was founded in 1979 and is based in Dublin, Ohio.
CAH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CAH, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Cardinal Health Inc ranked in the 61th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 54.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for CAH, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 71. Notably, its equity weight is greater than merely 21.92% of US equities in the Healthcare sector yielding a positive free cash flow.
Cardinal Health Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 9.09% of tickers in our DCF set.
Cardinal Health Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CAH, try ANIP, RDNT, MCK, ANTM, and DGX.
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