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GuruFocus has detected 1 Warning Sign with CVS Health Corp $CVS.
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CVS Health Corp (NYSE:CVS)
Price-to-Free-Cash-Flow
11.22 (As of Today)

As of today, CVS Health Corp's share price is $81.48. CVS Health Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $7.26. Hence, CVS Health Corp's Price-to-Free-Cash-Flow Ratio for today is 11.22.

CVS' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 8.96   Max: 105.03
Current: 11.22

8.96
105.03

During the past 13 years, CVS Health Corp's highest Price-to-Free-Cash-Flow Ratio was 105.03. The lowest was 8.96. And the median was 21.00.

CVS's Price-to-Free-Cash-Flow is ranked higher than
53% of the 17 Companies
in the Global Health Care Plans industry.

( Industry Median: 11.22 vs. CVS: 11.22 )

CVS Health Corp's Free Cash Flow per Share for the three months ended in Dec. 2016 was $1.39. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was $7.26.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of CVS Health Corp was 35.40% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 32.90% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 19.30% per year.

During the past 13 years, CVS Health Corp's highest 3-Year average Free Cash Flow per Share Growth Rate was 209.00% per year. The lowest was -45.90% per year. And the median was 24.70% per year.


Definition

CVS Health Corp's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=81.48/7.262
=11.22

CVS Health Corp's Share Price of today is $81.48.
CVS Health Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 1.651 (Mar. 2016 ) + 1.03 (Jun. 2016 ) + 3.187 (Sep. 2016 ) + 1.394 (Dec. 2016 ) = $7.26.

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

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, 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

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
pfcf 34.5423.8931.4617.2813.8913.5023.2118.8518.2410.87

CVS Health Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
pfcf 22.7318.8520.6920.5418.2218.2418.4115.4210.7710.87
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