CVS Health Corporation provides integrated pharmacy health care services in the United States. The company operates through Pharmacy Services and Retail Pharmacy segments. The company was founded in 1892 and is based in Woonsocket, Rhode Island.
CVS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CVS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that CVS HEALTH Corp ranked in the 74th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 351%. In terms of the factors that were most noteworthy in this DCF analysis for CVS, they are:
The company has produced more trailing twelve month cash flow than 96.46% of its sector Healthcare.
45% of the company's capital comes from equity, which is greater than merely 23.86% of stocks in our cash flow based forecasting set.
CVS HEALTH Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 1.43% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MYL, ABBV, HAE, RDNT, and PRSC can be thought of as valuation peers to CVS, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
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