Switch to:
GuruFocus has detected 1 Warning Sign with CVS Health Corp $CVS.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
CVS Health Corp (NYSE:CVS)
EV-to-EBITDA
9.08 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, CVS Health Corp's enterprise value is $107,139 Mil. CVS Health Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $11,803 Mil. Therefore, CVS Health Corp's EV/EBITDA ratio for today is 9.08.

CVS' s EV-to-EBITDA Range Over the Past 10 Years
Min: 6.2   Max: 16
Current: 9.08

6.2
16

During the past 13 years, the highest EV/EBITDA Ratio of CVS Health Corp was 16.00. The lowest was 6.20. And the median was 9.00.

CVS's EV-to-EBITDA is ranked higher than
57% of the 21 Companies
in the Global Health Care Plans industry.

( Industry Median: 10.19 vs. CVS: 9.08 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, CVS Health Corp's stock price is $80.49. CVS Health Corp's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $4.79. Therefore, CVS Health Corp's P/E Ratio for today is 16.80.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

CVS Health Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=107138.842/11803
=9.08

CVS Health Corp's current Enterprise Value is $107,139 Mil.
CVS Health Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 2431 (Jun. 2016 ) + 3332 (Sep. 2016 ) + 3629 (Dec. 2016 ) + 2411 (Mar. 2017 ) = $11,803 Mil.

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


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

CVS Health Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=80.49/4.79
=16.80

CVS Health Corp's share price for today is $80.49.
CVS Health Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.86 (Jun. 2016 ) + 1.43 (Sep. 2016 ) + 1.58 (Dec. 2016 ) + 0.92 (Mar. 2017 ) = $4.79.

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

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, 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
ev2ebitda 11.337.077.027.357.797.889.4511.7511.468.84

CVS Health Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 11.7512.4012.3511.8811.4611.8311.3310.058.849.02
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK