CVS Health (FRA:CVS) Cyclically Adjusted PB Ratio : 1.35 (As of Apr. 29, 2024)

View and export this data going back to 1952. Start your Free Trial

What is CVS Health Cyclically Adjusted PB Ratio?

As of today (2024-04-29), CVS Health's current share price is €62.78. CVS Health's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 was €46.65. CVS Health's Cyclically Adjusted PB Ratio for today is 1.35.

The historical rank and industry rank for CVS Health's Cyclically Adjusted PB Ratio or its related term are showing as below:

FRA:CVS' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.29 Med: 2.21 Max: 4.18
Current: 1.3

During the past years, CVS Health's highest Cyclically Adjusted PB Ratio was 4.18. The lowest was 1.29. And the median was 2.21.

FRA:CVS's Cyclically Adjusted PB Ratio is ranked better than
75% of 12 companies
in the Healthcare Plans industry
Industry Median: 3.515 vs FRA:CVS: 1.30

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

CVS Health's adjusted book value per share data for the three months ended in Dec. 2023 was €54.437. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €46.65 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation

CVS Health Cyclically Adjusted PB Ratio Historical Data

The historical data trend for CVS Health's Cyclically Adjusted PB Ratio 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 PB Ratio Chart

CVS Health Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cyclically Adjusted PB Ratio

Get a 7-Day Free Trial

2.04

1.76

2.36

1.93

1.53

CVS Health Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cyclically Adjusted PB Ratio	Get a 7-Day Free Trial															1.93	1.50	1.37	1.36	1.53

Competitive Comparison of CVS Health's Cyclically Adjusted PB Ratio

For the Healthcare Plans subindustry, CVS Health's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 PB Ratio Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, CVS Health's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where CVS Health's Cyclically Adjusted PB Ratio falls into.

CVS Health Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB 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 PB Ratio.

CVS Health's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio	=	Share Price	/	Cyclically Adjusted Book per Share
	=	62.78	/	46.65
	=	1.35

CVS Health's Cyclically Adjusted Book per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, CVS Health's adjusted Book Value per Share data for the three months ended in Dec. 2023 was:

Adj_Book	=	Book Value per Share	/	CPI of Dec. 2023 (Change)	*	Current CPI (Dec. 2023)
	=	54.437	/	129.4194	*	129.4194
	=	54.437

Current CPI (Dec. 2023) = 129.4194.

CVS Health Quarterly Data

	Book Value per Share	CPI	Adj_Book
201403	23.551	99.695	30.573
201406	24.193	100.560	31.136
201409	25.623	100.428	33.020
201412	27.003	99.070	35.275
201503	30.327	99.621	39.398
201506	29.722	100.684	38.205
201509	29.813	100.392	38.433
201512	31.014	99.792	40.222
201603	29.926	100.470	38.549
201606	29.048	101.688	36.970
201609	30.047	101.861	38.176
201612	32.907	101.863	41.809
201703	30.806	102.862	38.760
201706	29.937	103.349	37.489
201709	28.875	104.136	35.886
201712	31.409	104.011	39.082
201803	30.870	105.290	37.945
201806	29.970	106.317	36.482
201809	30.796	106.507	37.421
201812	39.521	105.998	48.254
201903	40.695	107.251	49.107
201906	41.751	108.070	49.999
201909	43.700	108.329	52.208
201912	44.146	108.420	52.696
202003	45.174	108.902	53.685
202006	46.215	108.767	54.990
202009	44.627	109.815	52.594
202012	43.540	109.897	51.275
202103	45.327	111.754	52.492
202106	46.125	114.631	52.075
202109	47.814	115.734	53.468
202112	50.258	117.630	55.295
202203	51.331	121.301	54.766
202206	54.210	125.017	56.119
202209	54.289	125.227	56.107
202212	51.897	125.222	53.637
202303	52.127	127.348	52.975
202306	52.360	128.729	52.641
202309	54.121	129.860	53.938
202312	54.437	129.419	54.437

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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 (FRA:CVS) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value 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 PB Ratio should give similar results to regular PB Ratio.

CVS Health Cyclically Adjusted PB Ratio Related Terms

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

CVS Health (FRA:CVS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Plans » CVS Health Corp (FRA:CVS) » Definitions » Cyclically Adjusted PB Ratio

Comparable Companies

Traded in Other Exchanges

CVS:USA CVS:Peru CVS:Mexico 1CVS:Italy CVSd:UK CVS:Germany CVS:Chile CVS:Canada CVSH34:Brazil CVS:Austria

Address

One CVS Drive, Woonsocket, RI, USA, 02895

Website

https://www.cvshealth.com

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.