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GuruFocus has detected 1 Warning Sign with CVS Health Corp $CVS.
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CVS Health Corp (NYSE:CVS)
PEG Ratio
PE(NRI) Ratio / EBITDA 5-Y Growth
1.13 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, CVS Health Corp's P/E (NRI) Ratio is 15.96. CVS Health Corp's 5-year average EBITDA growth rate is 14.10%. Therefore, CVS Health Corp's PEG for today is 1.13.

CVS' s PEG Ratio Range Over the Past 10 Years
Min: 0.56   Max: 2.48
Current: 1.13

0.56
2.48

During the past 13 years, CVS Health Corp's highest PEG was 2.48. The lowest was 0.56. And the median was 1.31.

CVS's PEG Ratio is ranked higher than
71% of the 14 Companies
in the Global Health Care Plans industry.

( Industry Median: 1.86 vs. CVS: 1.13 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

CVS Health Corp's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=15.9573170732/14.10
=1.13

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


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
peg 1.060.650.711.091.842.202.092.041.521.17

CVS Health Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
peg 1.802.042.041.981.631.521.581.561.371.17
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