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:
We started the process of determining a valid price forecast for CVS HEALTH Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that CVS HEALTH Corp ranked in the 78th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 528%. In terms of the factors that were most noteworthy in this DCF analysis for CVS, they are:
As a business, CVS is generating more cash flow than 96.55% of positive cash flow stocks in the Healthcare.
45% of the company's capital comes from equity, which is greater than only 24.77% 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 only 1.35% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PRSC, AMS, FTLF, TVTY, and LNTH 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.
CHICAGO, Sept. 24, 2020 /PRNewswire/ -- On September 26, in an effort to defeat COVID-19, Queen Latifah is hosting #Act4Impact, a livestream fundraising event to benefit the American Lung Association's COVID-19 Action Initiative. #Act4Impact is nationally presented by CVS Health, and…
Summary List Placement Retail behemoth Walmart is teaming up with clinical lab giant Quest Diagnostics to test delivering coronavirus nasal swab kits via drones to eligible homes in Las Vegas and Cheektowaga, New York. To participate, customers must reside within a 1-mile radius of a Walmart store in these regions and mail in the completed nasal swab to Quest Diagnostics for their test results. Walmart's latest move highlights how retail pharmacies have leveraged drone delivery during the pandemic—but we think it will have limited utility in the broader healthcare space. For instance, CVS made similar moves earlier this year when it partnered with UPS to offer Florida retirement facilities drone delivery for prescription drugs. However, drone manufacturers must overcome a number of regu...
CVS Health (NYSE: CVS) is a healthcare company that offers a retail pharmacy, clinical services, pharmacy benefit management services, a specialty pharmacy, and digital services, among other things. Its mission is "to help people on their path to better health." In November 2018, CVS Health acquired Aetna, which now provides health insurance to thousands of patients.