CVS Health Corp (CVS) Fair Value & Analysis

Healthcare · US · Market cap $133B · ISIN US1266501006

What is CVS Health Corp really worth?

CVS Health Corp CVS · US

Price$97.20

Fair Value$42.25

Upside−56.5%

Quality57/100

A solid business, but trading 130% above our fair value of $42.25.

Watch CVS Health Corp for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card. Watch for free

Strengths

✓Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +8.4 %/yr)

!Thin margins · 0.7% net margin

!Mixed vs. peers (6/15)

!Narrow moat 33/100

!Weak on past: 15 out of 100

For context

·2.74% dividend yield

Evidence: High Range $22.86 – $70.87

Fair value as of: Aug 30, 2026

From 26 valuation models · updated 6 days ago

Share price −6.9% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

What matters now

The price sits above even our optimistic bull case ($70.87). The favourable scenario is already priced in.
The model range is unusually wide ($22.86 to $70.87). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range $41.28 – $110.60 · fair‑value band $22.86 – $70.87 · the $97.20 price screens above the $42.25 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 30, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

CVS Health Corp (CVS) currently trades at $97.20, while our model-based Fair Value estimate is $42.25, implying the stock looks roughly 130.0% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Healthcare sector. Bull case: the Growth DCF group reads highest at a median of $88.76 per share, and 5 of the 26 models we run sit above the $97.20 price. Bear case: the Earnings-Based group reads lowest at $15.87, and 21 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, CVS Health Corp generated revenue of $406B at a net margin of 0.7%. Revenue grew 6.1% year over year. It earns a return on equity of 3.8%. Net debt stands at $85.1B. Fundamentals as of Aug 30, 2026

Our scenario range runs from $22.86 (bear case) to $70.87 (bull case); at $97.20, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 1% below its 52-week high and 70% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −2% fair-value upside, at −57%, CVS screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence

Highest evidence

Residual Income best evidence $42.27 $41.08 $33.70 76

FCF DCF $37.34 $98.90 $204.91 74

Owner Earnings — $22.61 $70.71 73

All 26 models by family

DCF Models

FCF DCF $37.34 $98.90 $204.91 74

Owner Earnings — $22.61 $70.71 73

5Y Revenue Exit $33.88 $90.14 $166.26 68

5Y EBITDA Exit $61.29 $146.22 $252.77 72

5Y P/E Exit — $18.16 $39.28 68

10Y Revenue Exit $31.88 $85.62 $167.31 62

10Y EBITDA Exit $52.51 $126.53 $239.19 64

10Y P/E Exit $11.13 $33.10 $61.80 60

Earnings-Based

Graham-Dodd $9.42 $42.54 $58.33 64

Lynch FV $11.11 $15.87 $20.63 61

PEG = 1.0 $11.11 $15.87 $20.63 57

EPV $29.02 $40.64 $50.82 73

Dividend Discount

Gordon GGM $24.45 $50.83 $80.63 66

DDM Multi-Stage $24.45 $42.86 $53.34 66

Multiples

P/E Multiple $22.86 $30.48 $38.11 63

P/S Multiple $17.67 $23.56 $29.45 58

P/B Multiple $17.67 $23.56 $29.45 55

EV/EBIT $63.03 $97.62 $132.21 65

EV/EBITDA $82.62 $123.74 $164.86 66

EV/Revenue $33.32 $65.06 $96.81 51

Asset-Based

NCAV (Graham) $29.47 $39.50 $58.95 54

Growth DCF

Growth DCF $36.92 $93.88 $189.64 73

Rev-Margin DCF $33.88 $88.76 $159.03 69

Economic Profit

Residual Income best evidence $42.27 $41.08 $33.70 76

ROIC Compounder $29.02 $40.64 $50.82 72

Growth Earnings

Growth-Adj P/E $18.49 $26.41 $34.33 67

Widest divergence: Growth DCF ($88.76) versus Earnings-Based ($15.87). Highest evidence: Residual Income (76).

Notify me when CVS reaches fair value

Put CVS on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.

Set up alert →

Free, no payment details. Unsubscribe anytime in one click.

Key figures & financial health

P/E ratio 42.6

P/S ratio 0.19 P/E × margin

EPS (TTM) $2.28 price ÷ EPS = P/E 42.6

Dividend yield 2.7% payout 117%

Net margin 0.4% FY2025

Return on equity 3.8% TTM

More key figures

Profitability

Return on assets (EBIT) 4.4% avg 5y

Operating margin 4.1% TTM

Growth

Revenue (TTM) $406B TTM

Revenue growth (YoY) +6.1% 3y avg +7.6%

EPS growth (YoY) +63.1%

Balance sheet & cash flow

Free cash flow $7.8B FY2025

Net debt $85.1B FY2025 · ≈ 10.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 55 · Market factors (momentum, volatility) 72

Profitability 39

Margins and returns on capital today

Quality Growth 51

Are margins and returns improving?

Cashflow 52

Earnings quality: real cash, not paper profit

Fin. Strength 38

Balance sheet, leverage, solvency risk

Investment 90

Disciplined investing over empire-building

Low Volatility 78

Calm price path (market factor)

Momentum 66

Price trend over the last 3–12 months (market factor)

52W Momentum 78

Distance to the 52-week high (market factor)

Net Issuance 85

Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

CVS Health Corporation provides health solutions in the United States. The company operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments.

Full company description

CVS Health Corporation provides health solutions in the United States. The company operates through Health Care Benefits, Health Services, and Pharmacy & Consumer Wellness segments. The Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services, including medical, pharmacy, dental and behavioral health plans, medical management capabilities, Medicare Advantage and Medicare Supplement plans, PDPS and Medicaid health care management services. It serves employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups, and expatriates. The Health Services segment offers pharmacy benefit management solutions, including plan design and administration, formulary management, retail pharmacy network management, specialty and mail order pharmacy, clinical, disease management, medical spend management services, pharmacy and other administrative services. It serves employers, insurance companies, unions, government employee groups, health plans, PDPS, Medicaid managed care plans, CMS, plans offered on public health insurance, and other sponsors of health benefit plans. The Pharmacy & Consumer Wellness segment sells prescription and over-the-counter drugs, consumer health and beauty products, personal care products, and other general merchandise products. This segment also distributes prescription drugs; and provides related pharmacy consulting and other ancillary services to care facilities and other care settings. It operates online retail pharmacy websites, retail specialty pharmacy stores, compounding pharmacies and branches for infusion and enteral nutrition services. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

CVS Health Corp reported revenue of $402B in FY2025 versus $292B in FY2021, a compound +8.3%/yr. Reported net income was $1.8B in FY2025, compounding −31.4%/yr from FY2021.

Growth Quality 72/100

Revenue growth appears healthy and is supported by profitability and cash-flow quality.

Latest Revenue (FY 2025)

$402B

Latest YoY

+7.8%

Avg. revenue growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

+7.6%

Avg. revenue growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

+8.4%

Avg. revenue growth/yr (40Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.

+11.7%

Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.

+5.6% (2.9 + 2.7)

Revenue +8.3%/yr

FY21 $292B

FY22 $322B

FY23 $358B

FY24 $373B

FY25 $402B

Net income −31.4%/yr

FY21 $8.0B

FY22 $4.3B

FY23 $8.3B

FY24 $4.6B

FY25 $1.8B

Character of growth · EPS growth decomposed (2014-2025) −1.7 % p.a.

Revenue per share +8.7 %

of which total revenue +10.3 % · buybacks/dilution −1.4 %

EBIT margin −8.0 %

Tax rate +2.4 %

Residual (interest, one-offs) −4.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

CVS screens 130% overvalued. Compare with UnitedHealth Group →

Run the numbers yourself: free valuation calculators

DCF Calculator Graham Number Peter Lynch Formula DDM Calculator Fama-French Model Intrinsic Value

Share or link this analysis

𝕏 Post WhatsApp LinkedIn Reddit

For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

CVS Health Corp · Fair Value
$42.25 −130%Fair Value
Calculator →

<a href="https://www.fairvalue-calculator.com/stock/CVS" target="_blank" rel="nofollow noopener" style="display:inline-flex;align-items:center;gap:12px;box-sizing:border-box;font-family:system-ui,-apple-system,Segoe UI,Roboto,sans-serif;text-decoration:none;background:#0f1814;color:#eaf2ed;border:1px solid #2a3a30;border-radius:12px;padding:12px 16px;max-width:360px"><span style="line-height:1.35"><span style="font-size:12px;color:#9fb0a8">CVS Health Corp · Fair Value</span><br><b style="font-size:20px">$42.25</b> <span style="color:#e0816f;font-weight:700;font-size:14px">−130%</span></span><span style="font-size:11px;color:#7BB290;font-weight:700;margin-left:auto;text-align:right;line-height:1.3">Fair&nbsp;Value<br>Calculator&nbsp;→</span></a>

Cite: Fair Value Calculator (2026). "CVS Health Corp Fair Value". https://www.fairvalue-calculator.com/stock/CVS

Peer Group

Healthcare Plans · 15 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Below median

Fair Value upside −57% · Bottom 25%

Return on equity (TTM) 4% · Below median

Return on assets 3% · Below median

Net margin (TTM) 1% · Below median

Operating margin (TTM) 4% · Below median

Revenue growth 6% · Above median

Dividend yield (TTM) 2.7% · Top 25%

Debt / equity 0.80× · Higher than median

Valuation Multiples vs Healthcare Plans median · lower = cheaper

P/E (TTM) 42.6× · Pricier than median

P/B 1.77× · Cheaper than 75% of peers

P/S (TTM) 0.33× · Cheaper than median

P/FCF 17.0× · Pricier than median

EV/EBITDA 12.0× · Cheaper than median

PEG 0.29× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

This stock

Sector peers

VALUE0 · sector 33

FUTURE31 · sector 23

PAST15 · sector 30

HEALTH60 · sector 65

DIVIDEND55 · sector 34

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Healthcare Plans stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock	Price	Fair Value	vs Fair Value
UnitedHealth Group UNH	$395.05	$292.06	−26%
Elevance Health, Inc ELV	$399.14	$426.53	+7%
The Cigna Group CI	$276.08	$495.42	+79%
Humana Inc HUM	$385.54	$126.42	−67%
Centene Corporation CNC	$64.75	$111.96	+73%
Molina Healthcare, Inc MOH	$203.06	$199.31	−2%
Oscar Health, Inc OSCR	$30.93	$61.86	+100%
Alignment Healthcare, Inc ALHC	$13.52	$2.37	−82%
Progyny, Inc PGNY	$25.65	$16.44	−36%
Medi Assist Healthcare Services Limited MEDIASSIST	₹346.80	₹226.12	−35%

Compare CVS Health Corp with another stock

Price, fair value, quality and upside side by side.

First stock

Second stock

Free, no sign-up

Explore undervalued stocks

More undervalued Healthcare stocks →

All undervalued stocks Technology Financial Services Healthcare Consumer Cyclical Consumer Defensive Communication Services Industrials Energy Basic Materials Real Estate Utilities Deeply Undervalued Stocks Undervalued Blue-Chip Stocks Undervalued Small-Cap Stocks Undervalued Dividend Stocks

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Extrinsic Value Calculator (Options) Splits an option premium into intrinsic and extrinsic (time) value. Peter Lynch Fair Value Formula & Calculator Apply Peter Lynch's fair value formula in seconds: fair P/E ≈ earnings growth (+ dividend) - free, with formula and example.

Frequently asked questions

Is CVS Health Corp (CVS) overvalued or undervalued?

As of Aug 30, 2026, our model estimates a fair value of $42.25 versus a price of $97.20, about −57% upside (overvalued).

What is the fair value of CVS?

Our model-based fair value for CVS Health Corp is $42.25 (as of Aug 30, 2026), built from audited fundamentals. The current price: $97.20.

What is the quality score of CVS?

CVS Health Corp has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.

What is the revenue of CVS Health Corp (CVS)?

CVS Health Corp reported trailing-twelve-month revenue of about $406B (latest available figure, as of Aug 30, 2026).

What is the net profit margin of CVS?

The net profit margin of CVS Health Corp is about 0.7%, meaning it keeps roughly 0.7% of revenue as net income. Based on the latest reported figures.

Does CVS Health Corp pay a dividend?

CVS Health Corp currently shows a dividend yield of about 2.74% relative to its recent price (as of Aug 30, 2026).

Free · no account needed

Watch CVS Health Corp in the live analysis

One click puts CVS Health Corp on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.