GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » CVS Health Corp (NEOE:CVS) » Definitions » Cyclically Adjusted Price-to-FCF

CVS Health (NEOE:CVS) Cyclically Adjusted Price-to-FCF : 6.43 (As of Jun. 24, 2024)


View and export this data going back to 2022. Start your Free Trial

What is CVS Health Cyclically Adjusted Price-to-FCF?

As of today (2024-06-24), CVS Health's current share price is C$15.44. CVS Health's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was C$2.40. CVS Health's Cyclically Adjusted Price-to-FCF for today is 6.43.

The historical rank and industry rank for CVS Health's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

NEOE:CVS' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 5.83   Med: 14.61   Max: 53.4
Current: 6.44

During the past years, CVS Health's highest Cyclically Adjusted Price-to-FCF was 53.40. The lowest was 5.83. And the median was 14.61.

NEOE:CVS's Cyclically Adjusted Price-to-FCF is ranked better than
76.92% of 13 companies
in the Healthcare Plans industry
Industry Median: 15.08 vs NEOE:CVS: 6.44

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

CVS Health's adjusted free cash flow per share data for the three months ended in Mar. 2024 was C$0.817. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is C$2.40 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


CVS Health Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for CVS Health's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

CVS Health Cyclically Adjusted Price-to-FCF Chart

CVS Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.90 11.00 13.77 10.92 8.55

CVS Health Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.22 7.27 7.25 8.55 8.37

Competitive Comparison of CVS Health's Cyclically Adjusted Price-to-FCF

For the Healthcare Plans subindustry, CVS Health's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


CVS Health's Cyclically Adjusted Price-to-FCF Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, CVS Health's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where CVS Health's Cyclically Adjusted Price-to-FCF falls into.



CVS Health Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

CVS Health's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=15.44/2.4
=6.43

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

CVS Health's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, CVS Health's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.817/131.7762*131.7762
=0.817

Current CPI (Mar. 2024) = 131.7762.

CVS Health Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.066 100.560 0.086
201409 0.189 100.428 0.248
201412 0.497 99.070 0.661
201503 0.316 99.621 0.418
201506 0.102 100.684 0.133
201509 0.274 100.392 0.360
201512 0.632 99.792 0.835
201603 0.403 100.470 0.529
201606 0.250 101.688 0.324
201609 0.763 101.861 0.987
201612 0.341 101.863 0.441
201703 0.724 102.862 0.928
201706 0.371 103.349 0.473
201709 0.457 104.136 0.578
201712 -0.147 104.011 -0.186
201803 0.433 105.290 0.542
201806 0.588 106.317 0.729
201809 0.129 106.507 0.160
201812 0.413 105.998 0.513
201903 0.230 107.251 0.283
201906 0.885 108.070 1.079
201909 0.430 108.329 0.523
201912 0.378 108.420 0.459
202003 0.497 108.902 0.601
202006 1.253 108.767 1.518
202009 0.245 109.815 0.294
202012 0.507 109.897 0.608
202103 0.357 111.754 0.421
202106 0.899 114.631 1.033
202109 0.853 115.734 0.971
202112 0.594 117.630 0.665
202203 0.436 121.301 0.474
202206 0.889 125.017 0.937
202209 1.578 125.227 1.661
202212 -0.495 125.222 -0.521
202303 1.245 127.348 1.288
202306 0.999 128.729 1.023
202309 0.415 129.860 0.421
202312 -0.670 129.419 -0.682
202403 0.817 131.776 0.817

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


CVS Health  (NEOE:CVS) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


CVS Health Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of CVS Health's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


CVS Health (NEOE:CVS) Business Description

Industry
Address
One CVS Drive, Woonsocket, RI, USA, 02895
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the U.S. CVS is also the largest pharmacy benefit manager (acquired through Caremark), processing over 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.

CVS Health (NEOE:CVS) Headlines

From GuruFocus

Q1 2023 CVS Health Corp Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q3 2023 CVS Health Corp Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q2 2023 CVS Health Corp Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q1 2022 CVS Health Corp Earnings Call Transcript

By GuruFocus Research 01-22-2024

CVS Health Corp Investor Day Transcript

By GuruFocus Research 01-22-2024

Q4 2021 CVS Health Corp Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q4 2022 CVS Health Corp Earnings Call Transcript

By GuruFocus Research 01-22-2024