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CVS Health (CVS Health) Cyclically Adjusted Price-to-FCF : 7.28 (As of Apr. 27, 2024)


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What is CVS Health Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), CVS Health's current share price is $67.18. CVS Health's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $9.23. CVS Health's Cyclically Adjusted Price-to-FCF for today is 7.28.

The historical rank and industry rank for CVS Health's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

CVS' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 6.88   Med: 15.25   Max: 53.4
Current: 7.29

During the past years, CVS Health's highest Cyclically Adjusted Price-to-FCF was 53.40. The lowest was 6.88. And the median was 15.25.

CVS's Cyclically Adjusted Price-to-FCF is ranked better than
72.73% of 11 companies
in the Healthcare Plans industry
Industry Median: 15.17 vs CVS: 7.29

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

CVS Health's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $-2.743. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $9.23 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


CVS Health Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for CVS Health's Cyclically Adjusted Price-to-FCF 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.

* Premium members only.

CVS Health Cyclically Adjusted Price-to-FCF Chart

CVS Health Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.90 11.00 13.77 10.92 8.55

CVS Health Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.92 8.22 7.27 7.25 8.55

Competitive Comparison of CVS Health's Cyclically Adjusted Price-to-FCF

For the Healthcare Plans subindustry, CVS Health's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, CVS Health's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where CVS Health's Cyclically Adjusted Price-to-FCF falls into.



CVS Health Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

CVS Health's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=67.18/9.23
=7.28

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, CVS Health's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=-2.743/129.4194*129.4194
=-2.743

Current CPI (Dec. 2023) = 129.4194.

CVS Health Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 1.499 99.695 1.946
201406 0.336 100.560 0.432
201409 0.945 100.428 1.218
201412 2.366 99.070 3.091
201503 1.378 99.621 1.790
201506 0.454 100.684 0.584
201509 1.135 100.392 1.463
201512 2.532 99.792 3.284
201603 1.675 100.470 2.158
201606 1.063 101.688 1.353
201609 3.196 101.861 4.061
201612 1.406 101.863 1.786
201703 2.972 102.862 3.739
201706 1.531 103.349 1.917
201709 2.046 104.136 2.543
201712 -0.631 104.011 -0.785
201803 1.838 105.290 2.259
201806 2.460 106.317 2.995
201809 0.545 106.507 0.662
201812 1.688 105.998 2.061
201903 0.946 107.251 1.142
201906 3.660 108.070 4.383
201909 1.783 108.329 2.130
201912 1.577 108.420 1.882
202003 1.954 108.902 2.322
202006 5.077 108.767 6.041
202009 1.019 109.815 1.201
202012 2.172 109.897 2.558
202103 1.561 111.754 1.808
202106 4.040 114.631 4.561
202109 3.697 115.734 4.134
202112 2.547 117.630 2.802
202203 1.892 121.301 2.019
202206 3.812 125.017 3.946
202209 6.497 125.227 6.715
202212 -2.000 125.222 -2.067
202303 4.999 127.348 5.080
202306 4.131 128.729 4.153
202309 1.683 129.860 1.677
202312 -2.743 129.419 -2.743

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


CVS Health  (NYSE:CVS) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


CVS Health Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of CVS Health's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


CVS Health (CVS Health) Business Description

Industry
Address
One CVS Drive, Woonsocket, RI, USA, 02895
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.
Executives
Edward J Ludwig director C/O BECTON DICKERSON & CO, 1 BECTON DR, FRANKLIN LAKES NJ 07417
Michael F Mahoney director BOSTON SCIENTIFIC CORPORATION, 300 BOSTON SCIENTIFIC WAY, MARLBOROUGH MA 01752-1234
Thomas F. Cowhey officer: SVP, Interim CFO 310 SEVEN SPRINGS WAY, SUITE 500, BRENTWOOD TN 37027
J Scott Kirby director 233 S. WACKER DRIVE 11TH FL WHQLD, CHICAGO IL 60606
Brian A Kane officer: EVP/President, Aetna 500 W MAIN STREET, LOUISVILLE KY 40202
James David Clark officer: SVP, Cont & Chief Acct Officer ONE CVS DRIVE, WOONSOCKET RI 02760
Karen S Lynch officer: EVP & Pres, Aetna Bus Unit 151 FARMINGTON AVENUE, RW61, HARTFORD CT 06156
Samrat S. Khichi officer: EVP, CPO and General Counsel C/O CATALENT, INC., 14 SCHOOLHOUSE ROAD, SOMERSET NJ 08873
Thomas M Moriarty officer: EVP & General Counsel 100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417
Jeffrey R. Balser director 3657 RICHLAND AVE., NASHVILLE TN 37205
Alan Lotvin officer: EVP, Transformation 55 NOD ROAD, AVON CT 06001
Daniel P Finke officer: EVP/Pres, Health Care Benefits ONE CVS DRIVE, WOONSOCKET RI 02895
Tilak Mandadi officer: EVP, Chief Technology Officer 3600 LAS VEGAS BLVD. SOUTH, LAS VEGAS NV 89109
Sreekanth K Chaguturu officer: EVP and Chief Medical Officer ONE CVS DRIVE, WOONSOCKET RI 02895
Prem S Shah officer: EVP and Co-President of Retail ONE CVS DRIVE, WOONSOCKET RI 02895

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