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 72th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of CVS HEALTH Corp, consider:
The company's balance sheet shows it gets 46% of its capital from equity, and 54% of its capital from debt. Its equity weight surpasses that of merely 13.28% of free cash flow generating stocks in the Healthcare sector.
CVS HEALTH Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 5.16% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BLFS, QDEL, ALXN, LXRX, and OMI 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.