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CVS Health (XSGO:CVS) E10 : $5.46 (As of Dec. 2024)


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What is CVS Health E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

CVS Health's adjusted earnings per share data for the three months ended in Dec. 2024 was $1.300. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is $5.46 for the trailing ten years ended in Dec. 2024.

During the past 12 months, CVS Health's average E10 Growth Rate was -0.20% per year. During the past 3 years, the average E10 Growth Rate was 3.80% per year. During the past 5 years, the average E10 Growth Rate was 7.00% per year. During the past 10 years, the average E10 Growth Rate was 7.10% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of CVS Health was 27.80% per year. The lowest was -11.30% per year. And the median was 9.80% per year.

As of today (2025-03-04), CVS Health's current stock price is $51.86. CVS Health's E10 for the quarter that ended in Dec. 2024 was $5.46. CVS Health's Shiller PE Ratio of today is 9.50.

During the past 13 years, the highest Shiller PE Ratio of CVS Health was 38.92. The lowest was 8.20. And the median was 18.08.


CVS Health E10 Historical Data

The historical data trend for CVS Health's E10 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 E10 Chart

CVS Health Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.24 4.69 5.08 4.76 5.46

CVS Health Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
E10 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 4.76 5.03 6.89 4.95 5.46

Competitive Comparison of CVS Health's E10

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

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

* The bar in red indicates where CVS Health's Shiller PE Ratio falls into.



CVS Health E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, CVS Health's adjusted earnings per share data for the three months ended in Dec. 2024 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Dec. 2024 (Change)*Current CPI (Dec. 2024)
=1.3/133.1571*133.1571
=1.300

Current CPI (Dec. 2024) = 133.1571.

CVS Health Quarterly Data

per share eps CPI Adj_EPS
201503 1.070 99.621 1.430
201506 1.120 100.684 1.481
201509 1.110 100.392 1.472
201512 1.340 99.792 1.788
201603 1.040 100.470 1.378
201606 0.860 101.688 1.126
201609 1.430 101.861 1.869
201612 1.590 101.863 2.078
201703 0.920 102.862 1.191
201706 1.070 103.349 1.379
201709 1.260 104.136 1.611
201712 3.220 104.011 4.122
201803 0.980 105.290 1.239
201806 -2.520 106.317 -3.156
201809 1.360 106.507 1.700
201812 -0.370 105.998 -0.465
201903 1.090 107.251 1.353
201906 1.490 108.070 1.836
201909 1.170 108.329 1.438
201912 1.330 108.420 1.633
202003 1.530 108.902 1.871
202006 2.260 108.767 2.767
202009 0.930 109.815 1.128
202012 0.740 109.897 0.897
202103 1.680 111.754 2.002
202106 2.100 114.631 2.439
202109 1.200 115.734 1.381
202112 0.980 117.630 1.109
202203 1.770 121.301 1.943
202206 2.290 125.017 2.439
202209 -2.590 125.227 -2.754
202212 1.750 125.222 1.861
202303 1.650 127.348 1.725
202306 1.480 128.729 1.531
202309 1.750 129.860 1.794
202312 1.580 129.419 1.626
202403 0.880 131.776 0.889
202406 1.410 132.554 1.416
202409 0.070 133.029 0.070
202412 1.300 133.157 1.300

Add all the adjusted EPS together and divide 10 will get our e10.


CVS Health  (XSGO:CVS) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

CVS Health's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=51.86/5.46
=9.50

* 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.

During the past 13 years, the highest Shiller P/E Ratio of CVS Health was 38.92. The lowest was 8.20. And the median was 18.08.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


CVS Health E10 Related Terms

Thank you for viewing the detailed overview of CVS Health's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


CVS Health Business Description

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 us. CVS is also a large pharmacy benefit manager (acquired through Caremark), processing about 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.