Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-07), the stock price of CVS Health is CHF83.03. CVS Health's graham number for the quarter that ended in Mar. 2026 was CHFN/A. Therefore, CVS Health's Price to Graham Number ratio for today is N/A.
The historical rank and industry rank for CVS Health's Graham Number or its related term are showing as below:
XSWX:CVS's Price-to-Graham-Number is not ranked *
in the Healthcare Plans industry.
Industry Median: 3.195 * Ranked among companies with meaningful Price-to-Graham-Number only.
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
CVS Health (XSWX:CVS) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
CVS Health's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
83.03
/
N/A
=
N/A
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
CVS Health Graham Number Related Terms
CVS Health Graham Number Historical Data
* Premium members only.
The historical data trend for CVS Health's Graham Number 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.
XSWX:CVS vs ELV, CI, HUM: Graham Number Comparison
For the Healthcare Plans subindustry, CVS Health's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, CVS Health's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where CVS Health's Price-to-Graham-Number falls into.
* 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 (XSWX:CVS) has a Graham Number of CHFN/A as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on CVS Health and its competitors. According to the industry distribution chart, CVS Health ranks #999999 out of 12 companies in the Healthcare Plans industry.
Is CVS Health's Graham Number too high?
CVS Health's current Graham Number is CHFN/A. Based on the distribution chart, CVS Health ranks #999999 out of 12 companies in the Healthcare Plans industry, which is in the bottom quartile relative to peers. Overall, CVS Health has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does CVS Health's Graham Number compare to ELV and CI?
According to the Healthcare Plans industry distribution chart, CVS Health ranks #999999 out of 12 companies for Graham Number. This places CVS Health in the lower half of its industry. The industry median Graham Number is 3.20. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Graham Number for a Healthcare Plans company?
The median Graham Number among Healthcare Plans companies is 3.20, based on 12 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on CVS Health and its competitors. For the Healthcare Plans industry, the median Graham Number is 3.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CVS Health's current Graham Number is CHFN/A. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CVS Health stock overvalued right now?
CVS Health (XSWX:CVS) has a current Graham Number of CHFN/A. The stock's GF Value™ is CHF63.19, compared to a current price of CHF83.03 — trading 31.4% above its estimated fair value. The current Graham Number is CHFN/A. CVS Health's overall GF Score™ is 77/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Graham Number calculated?
Graham Number is calculated from a company's financial statements. For CVS Health (XSWX:CVS), the current Graham Number is CHFN/A as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CVS Health (XSWX:CVS) Overvalued in 2026?
Based on GuruFocus' analysis, CVS Health stock appears to be overvalued.
The current stock price of CHF83.03 is trading 31.4% above its estimated GF Value™ of CHF63.19.
Key valuation signals for XSWX:CVS:
Graham Number: CHFN/A
GF Value™: CHF63.19 vs. price of CHF83.03 (31.4% above fair value)
No single metric tells the full story. See the XSWX:CVS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates around 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 operates a top-tier health insurer (acquired through Aetna) through which it serves about 27 million medical members. The acquisition of Oak Street Health added primary care services to the mix, which could have significant synergies with all existing business lines.
77GF Score
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