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CVS Health (FRA:CVS) Cyclically Adjusted Price-to-FCF : 7.52 (As of Apr. 29, 2024)


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

As of today (2024-04-29), CVS Health's current share price is €62.78. CVS Health's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was €8.35. CVS Health's Cyclically Adjusted Price-to-FCF for today is 7.52.

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

FRA:CVS' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.88   Med: 15.25   Max: 53.4
Current: 7.28

During the past years, CVS Health's highest Cyclically Adjusted Price-to-FCF was 53.40. The lowest was 6.88. And the median was 15.25.

FRA:CVS's Cyclically Adjusted Price-to-FCF is ranked better than
72.73% of 11 companies
in the Healthcare Plans industry
Industry Median: 14.88 vs FRA:CVS: 7.28

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 Dec. 2023 was €-2.516. 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 €8.35 for the trailing ten years ended in Dec. 2023.

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
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 10.92 8.22 7.27 7.25 8.55

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
=62.78/8.35
=7.52

* 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 Dec. 2023 is calculated as:

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

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=-2.516/129.4194*129.4194
=-2.516

Current CPI (Dec. 2023) = 129.4194.

CVS Health Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 1.084 99.695 1.407
201406 0.247 100.560 0.318
201409 0.733 100.428 0.945
201412 1.919 99.070 2.507
201503 1.273 99.621 1.654
201506 0.405 100.684 0.521
201509 1.011 100.392 1.303
201512 2.325 99.792 3.015
201603 1.504 100.470 1.937
201606 0.946 101.688 1.204
201609 2.847 101.861 3.617
201612 1.333 101.863 1.694
201703 2.779 102.862 3.496
201706 1.363 103.349 1.707
201709 1.717 104.136 2.134
201712 -0.533 104.011 -0.663
201803 1.491 105.290 1.833
201806 2.106 106.317 2.564
201809 0.467 106.507 0.567
201812 1.484 105.998 1.812
201903 0.837 107.251 1.010
201906 3.239 108.070 3.879
201909 1.619 108.329 1.934
201912 1.419 108.420 1.694
202003 1.768 108.902 2.101
202006 4.508 108.767 5.364
202009 0.865 109.815 1.019
202012 1.785 109.897 2.102
202103 1.311 111.754 1.518
202106 3.353 114.631 3.786
202109 3.142 115.734 3.514
202112 2.254 117.630 2.480
202203 1.718 121.301 1.833
202206 3.606 125.017 3.733
202209 6.562 125.227 6.782
202212 -1.888 125.222 -1.951
202303 4.669 127.348 4.745
202306 3.813 128.729 3.833
202309 1.577 129.860 1.572
202312 -2.516 129.419 -2.516

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  (FRA: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 (FRA: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 (FRA:CVS) Headlines

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