PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, CVS Health's PE Ratio without NRI is 9.14. CVS Health's 5-Year EBITDA growth rate is 9.00%. Therefore, CVS Health's PEG Ratio for today is 1.02.
* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
The historical rank and industry rank for CVS Health's PEG Ratio or its related term are showing as below:
CVS'
s PEG Ratio Range Over the Past 10 Years
Min: 1.02 Med: 1.94 Max: 458.67
Current: 1.02
During the past 13 years, CVS Health's highest PEG Ratio was 458.67. The lowest was 1.02. And the median was 1.94.
CVS's PEG Ratio is ranked better than 60% of 10
companies
in the Healthcare Plans industry
Industry Median: 1.26
vs CVS: 1.02
Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.
CVS Health PEG Ratio Historical Data
The historical data trend for CVS Health's PEG Ratio 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.
For the Healthcare Plans subindustry, CVS Health's PEG Ratio, along with its competitors' market caps and PEG 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 PEG Ratio Distribution
For the Healthcare Plans industry and Healthcare sector, CVS Health's PEG Ratio distribution charts can be found below:
* The bar in red indicates where CVS Health's PEG Ratio falls into.
CVS Health PEG Ratio Calculation
PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio.
The ratio we use is the 5-Year EBITDA growth rate.
* 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.
* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.
CVS Health (NYSE:CVS) PEG Ratio Explanation
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.
CVS Health PEG Ratio Related Terms
Thank you for viewing the detailed overview of CVS Health's PEG Ratio 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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