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 25th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Cardinal Health Inc, consider:
The company's balance sheet shows it gets 62% of its capital from equity, and 38% of its capital from debt. Its equity weight surpasses that of merely 21.96% of free cash flow generating stocks in the Healthcare sector.
Cardinal Health Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -15.45. This coverage rate is greater than that of just 4.08% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ILMN, ENZ, VREX, EHC, and MOH can be thought of as valuation peers to CAH, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.