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CVS Health GF Value Rank

: 3 (As of Today)
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CVS Health has the GF Value Rank of 3.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Healthcare Plans subindustry, CVS Health's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Healthcare Plans industry and Healthcare sector, CVS Health's GF Value Rank distribution charts can be found below:

* The bar in red indicates where CVS Health's GF Value Rank falls into.



CVS Health GF Value Rank Related Terms

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


CVS Health Business Description

CVS Health logo
Address
One CVS Drive, Woonsocket, RI, USA, 02895
CVS Health Corp, its acquisition of Aetna in late 2018, CVS Health now provides an even more integrated healthcare-services offering for its members. Legacy CVS a sizable pharmacy operation, includes nearly 9,900 retail pharmacy locations primarily in the U.S. Adding a managed-care organization with 35 million medical members gives the company a strong position in the insurance industry and should help CVS better control overall healthcare costs for its clients.
Executives
Chaguturu Sreekanth K officer: EVP and Chief Medical Officer ONE CVS DRIVE WOONSOCKET RI 02895
Peluso Michelle A officer: EVP and Co-President of Retail 3150 SABRE DRIVE SOUTHLAKE TX 76092
Shah Prem S officer: EVP and Co-President of Retail ONE CVS DRIVE WOONSOCKET RI 02895
Brennan Troyen A officer: EVP and Chief Medical Officer AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Guertin Shawn M officer: EVP & Chief Financial Officer TRINET GROUP, INC. ONE PARK PLACE, SUITE 600 DUBLIN CA 94568
Havanec Laurie P. officer: EVP and Chief People Officer ONE CARRIER PLACE FARMINGTON CT 06032
Finke Daniel P officer: EVP/Pres, Health Care Benefits ONE CVS DRIVE WOONSOCKET RI 02895
Montgomery Neela officer: EVP and Pres., Pharmacy/Retail C/O LOGITECH INTERNATIONAL S.A. LES CHATAGNIS APPLES V8 1143
Mayhew Jonathan E. officer: EVP, Chief Transformation Off ONE CVS DRIVE WOONSOCKET RI 02895
Ludwig Edward J director C/O BECTON DICKERSON & CO 1 BECTON DR FRANKLIN LAKES NJ 07417
Farah Roger N director POLO RALPH LAUREN CORP 650 MADISON AVE NEW YORK NY 10022
Bertolini Mark T director AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Flum Joshua Matthew officer: EVP, Ent. Strategy & Digital 704 EXECUTIVE BOULEVARD VALLEY COTTAGE NY 10989
Lynch Karen S officer: EVP & Pres, Aetna Bus Unit 151 FARMINGTON AVENUE RW61 HARTFORD CT 06156
Aguirre Fernando director CHIQUITA BRANDS INTERNATIONAL 250 EAST FIFTH STREET CINCINNATI OH 45202

CVS Health Headlines

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