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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for CVS HEALTH Corp. To summarize, we found that CVS HEALTH Corp ranked in the 76th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 321.67%. As for the metrics that stood out in our discounted cash flow analysis of CVS HEALTH Corp, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 47. Its equity weight surpasses that of merely 14.3% 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 merely 3.21% of tickers in our DCF set.
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 CVS, try HZNP, CCEL, ABC, TVTY, and MYL.