CVS Health Valuation

CVS Health shows prevailing Real Value of $86.96 per share. The current price of the firm is $80.12. At this time the firm appears to be under valued. Macroaxis approximates value of CVS Health from analyzing the firm fundamentals such as Return On Equity of 14.70% and Profit Margin of 2.87% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point future time assets prices and their ongoing real values will blend.

Taking a look at the company’s numbers in an 8-K filing, we can see net revenues increased 15.5% to $44.6 billion, which is a year-over-year number. Operating profits increased 20.9% to $2.8 billion, which again, this is a year-over-year number. Year-to-date cash flow from operations is $7.9 billion and generated free cash flow of $6.6 billion. CVS does have a note for the 2017 fiscal year that their projections included a projected loss of more than 40 million retail prescriptions related to new restricted pharmacy networks. 

Looking at the chart, it appears price seems to be falling a bit, as it is beginning to make lower highs and lower lows. Just like most stocks, the price has increase steadily for years and is now maybe being over extended. I would be watching for a healthy retrace and begin looking for a solid entry point if this is a stock you want to invest in. Right now, it appears a top has been made and now patience is key.

Valuation Drivers Correlation

Selected CVS Health Corporation Valuation Data Over Time

Net Income Per Employee    Enterprise Value    Market Capitalization    
Investment Horizon     30 Days    Login   to change
CVS Health Corporation is rated third in price to earning category among related companies. It is number one stock in five year return category among related companies reporting about  0.63  of Five Year Return per Price to Earning. The ratio of Price to Earning to Five Year Return for CVS Health Corporation is roughly  1.59 
Under Valued
June 27, 2017
80.12
Market Value
Downside upside
86.96
Real Value
Target Price Odds
 Above  Below  
91.22
Upside
Upside upside
CVS Health is not too risky asset. Calculation of real value of CVS Health is based on 1 month time horizon. Increasing CVS Health time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.

Recommendations

CVS Health Analyst Recommendations
Target PriceAdvice# of Analysts
89.5Buy18Odds
CVS Health Corporation current and past analyst recommendations published by number of research institutions as well as average analyst consensus
CVS Health Analyst Advice  

Tax Efficiency

CVS Health Tax Efficiency History

Tax Efficiency

Market Capitalization

CVS Health Market Capitalization Analysis
CVS Health Corporation is number one stock in market capitalization category among related companies. Market capitalization of Healthcare Services industry is currently estimated at about 113.51 Billion. CVS Health totals roughly 79.16 Billion in market capitalization claiming about 70% of equities under Healthcare Services industry.
Capitalization  Revenue  Valuation  Workforce  Total debt

Revenue

CVS Health Revenue
Based on latest financial disclosure CVS Health Corporation reported 178.83 B of revenue. This is 2651.26% higher than that of the Healthcare sector, and significantly higher than that of Healthcare Services industry, The Revenue for all stocks is 1716.16% lower than the firm.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can includes product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.