This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. CVS Health's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $277.287. CVS Health's 10-Year median PS Ratio is 0.4169. Therefore, the Median PS Value for today is $115.60.
As of today (2024-04-25), CVS Health's share price is $66.965. CVS Health's Median PS Value is $115.60. Therefore, CVS Health's Price to Median PS Value for today is 0.58.
The historical rank and industry rank for CVS Health's Median PS Value or its related term are showing as below:
CVS'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.58 Med: 0.77 Max: 1.33
Current: 0.58
During the past 13 years, the highest Price to Median PS Value of CVS Health was 1.33. The lowest was 0.58. And the median was 0.77.
CVS's Price-to-Median-PS-Value is ranked better than 50% of 12
companies
in the Healthcare Plans industry
Industry Median: 0.655
vs CVS: 0.58
CVS Health Median PS Value Historical Data
The historical data trend for CVS Health's Median PS Value 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.
Competitive Comparison of CVS Health's Median PS Value
For the Healthcare Plans subindustry, CVS Health's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value 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 Price-to-Median-PS-Value Distribution in the Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, CVS Health's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where CVS Health's Price-to-Median-PS-Value falls into.
CVS Health Median PS Value Calculation
CVS Health's Median PS Value for today is calculated as
10-Year Median PS Ratio is 0.4169.
CVS Health's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $277.287.
* 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 (NYSE:CVS) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
CVS Health's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
66.965
/
115.60
=
0.58
* 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 Median PS Value Related Terms
Thank you for viewing the detailed overview of CVS Health's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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