Using the industry peer median P/E multiple (trailing + forward), CVS Health Corporation (CVS) has a fair value of $69.53 based on 9 comparable companies in the Medical - Healthcare Plans industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| CVS Health CorporationCVS | 90,959 | 51.5x | 10.0x |
| Bristol-Myers Squibb CompanyBMY | 121,119 | 17.2x | 9.5x |
| Vertex Pharmaceuticals IncorporatedVRTX | 115,820 | 29.8x | 23.6x |
| Medtronic plcMDT | 113,213 | 24.4x | 15.6x |
| HCA Healthcare, Inc.HCA | 108,040 | 17.0x | 16.0x |
| McKesson CorporationMCK | 107,034 | 33.7x | 22.2x |
| Cigna CorporationCI | 72,693 | 12.3x | 9.0x |
| Elevance Health Inc.ELV | 65,020 | 11.7x | 11.4x |
| Cencora, Inc.COR | 61,941 | 40.0x | 18.1x |
| Humana Inc.HUM | 21,005 | 17.7x | 18.9x |
| Industry Median | 17.7x | 16.0x | |
| (*) Profit after tax | 1,768 | 9,111 | |
| Equity Value | 31,296 | 145,439 | |
| (/) Outstanding shares | 1,271 | 1,271 | |
| Fair Price | $25 | $114 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.