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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-31), CVS Health's 1-Year Sharpe Ratio is 1.27.
CVS Health (NYSE:CVS) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.
CVS Health 1-Year Sharpe Ratio Related Terms
CVS vs ELV, CI, HUM: 1-Year Sharpe Ratio Comparison
For the Healthcare Plans subindustry, CVS Health's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, CVS Health's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where CVS Health's 1-Year Sharpe Ratio falls into.
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
CVS Health (CVS) has a 1-Year Sharpe Ratio of 1.27 as of Jul. 31, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for CVS Health and its competitors.
Is CVS Health's 1-Year Sharpe Ratio too high?
CVS Health's current 1-Year Sharpe Ratio is 1.27. Overall, CVS Health has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CVS Health's 1-Year Sharpe Ratio compare to ELV and CI?
CVS Health's 1-Year Sharpe Ratio of 1.27 can be compared against companies in the Healthcare Plans industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for a Healthcare Plans company?
A good 1-Year Sharpe Ratio depends on the Healthcare Plans industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for CVS Health and its competitors. CVS Health's current 1-Year Sharpe Ratio is 1.27. 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?
Based on GuruFocus' analysis, CVS Health (CVS) is currently considered Significantly Overvalued. The stock's GF Value™ is $77.71, compared to a current price of $105.22 — trading 35.4% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.27. CVS Health's overall GF Score™ is 75/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For CVS Health (CVS), the current 1-Year Sharpe Ratio is 1.27 as of Jul. 31, 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 (CVS) Overvalued in 2026?
Based on GuruFocus' analysis, CVS Health stock appears to be overvalued.
The current stock price of $105.22 is trading 35.4% above its estimated GF Value™ of $77.71.
GuruFocus considers CVS Health to be Significantly Overvalued.
Key valuation signals for CVS:
1-Year Sharpe Ratio: 1.27
GF Value™: $77.71 vs. price of $105.22 (35.4% above fair value)
No single metric tells the full story. See the 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.
75GF Score
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