Switch to:
CVS Health Corp (NYSE:CVS)
EV/EBITDA
9.03 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, CVS Health Corp's enterprise value is $107,252 Mil. CVS Health Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $11,878 Mil. Therefore, CVS Health Corp's EV/EBITDA ratio for today is 9.03.

CVS' s EV/EBITDA Range Over the Past 10 Years
Min: 6.2   Max: 16
Current: 9.03

6.2
16

During the past 13 years, the highest EV/EBITDA Ratio of CVS Health Corp was 16.00. The lowest was 6.20. And the median was 9.40.

CVS's EV/EBITDA is ranked lower than
59% of the 22 Companies
in the Global Health Care Plans industry.

( Industry Median: 8.52 vs. CVS: 9.03 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, CVS Health Corp's stock price is $77.62. CVS Health Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $4.67. Therefore, CVS Health Corp's P/E Ratio for today is 16.62.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

CVS Health Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=107252.010/11878
=9.03

CVS Health Corp's current Enterprise Value is $107,252 Mil.
CVS Health Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was 3317 (Dec. 2015 ) + 2798 (Mar. 2016 ) + 2431 (Jun. 2016 ) + 3332 (Sep. 2016 ) = $11,878 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

CVS Health Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=77.62/4.67
=16.62

CVS Health Corp's share price for today is $77.62.
CVS Health Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was 1.34 (Dec. 2015 ) + 1.04 (Mar. 2016 ) + 0.86 (Jun. 2016 ) + 1.43 (Sep. 2016 ) = $4.67.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

CVS Health Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 9.5111.337.077.027.357.797.889.4511.7511.46

CVS Health Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 9.4410.2711.7512.3212.3511.8811.4611.7311.3310.05
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK