DCF Tool

CVS

CVS Health Corporation is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; and Aetna, a health insurance provider, among many other brands.
Analysis Results
Intrinsic Value $350.48
Latest Price $68.64
Relative Value 80% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 9.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 11.9 11.3
2025 13.0 11.8
2026 14.3 12.3
2027 15.7 12.8
2028 17.3 13.4
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 519 billion. This corresponds to a present value of 380 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 61.5 billion. Adding in the terminal value gives a total present value of 442 billion.

There are presently 1.26 billion outstanding shares, so the intrinsic value per share is 350.48.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 67,858,000,000
Current Cash 11,455,000,000
Current Liabilities 79,189,000,000
Current Debt 2,972,000,000
Non-Cash Working Capital (NCWC) -19,814,000,000
Change in NCWC -1,815,000,000
EBIT 14,599,000,000
Tax Provision 2,805,000,000
Depreciation and Amortization 4,366,000,000
Capital Expenditure -3,031,000,000
Unlevered Free Cash Flow 10,453,897,073
Current Assets 65,682,000,000
Current Cash 15,723,000,000
Current Liabilities 69,736,000,000
Current Debt 1,778,000,000
Non-Cash Working Capital (NCWC) -17,999,000,000
Change in NCWC -1,880,000,000
EBIT 16,082,000,000
Tax Provision 1,463,000,000
Depreciation and Amortization 4,247,000,000
Capital Expenditure -2,727,000,000
Unlevered Free Cash Flow 11,541,480,099
Current Assets 60,008,000,000
Current Cash 12,525,000,000
Current Liabilities 67,807,000,000
Current Debt 4,205,000,000
Non-Cash Working Capital (NCWC) -16,119,000,000
Change in NCWC -5,057,000,000
EBIT 14,982,000,000
Tax Provision 2,522,000,000
Depreciation and Amortization 4,512,000,000
Capital Expenditure -2,520,000,000
Unlevered Free Cash Flow 8,290,838,387
Current Assets 56,369,000,000
Current Cash 10,854,000,000
Current Liabilities 62,017,000,000
Current Debt 5,440,000,000
Non-Cash Working Capital (NCWC) -11,062,000,000
Change in NCWC -3,786,000,000
EBIT 13,911,000,000
Tax Provision 2,569,000,000
Depreciation and Amortization 4,441,000,000
Capital Expenditure -2,437,000,000
Unlevered Free Cash Flow 8,471,133,162
Current Assets 50,302,000,000
Current Cash 8,056,000,000
Current Liabilities 53,303,000,000
Current Debt 3,781,000,000
Non-Cash Working Capital (NCWC) -7,276,000,000
Change in NCWC -3,914,000,000
EBIT 11,987,000,000
Tax Provision 2,366,000,000
Depreciation and Amortization 4,371,000,000
Capital Expenditure -2,457,000,000
Unlevered Free Cash Flow 6,834,700,122
Current Assets 45,243,000,000
Current Cash 6,581,000,000
Current Liabilities 44,009,000,000
Current Debt 1,985,000,000
Non-Cash Working Capital (NCWC) -3,362,000,000
Change in NCWC -6,957,000,000
EBIT 10,170,000,000
Tax Provision 2,002,000,000
Depreciation and Amortization 2,718,000,000
Capital Expenditure -2,037,000,000
Unlevered Free Cash Flow 1,892,000,000
Current Assets 31,229,000,000
Current Cash 1,807,000,000
Current Liabilities 30,648,000,000
Current Debt 4,821,000,000
Non-Cash Working Capital (NCWC) 3,595,000,000
Change in NCWC 345,000,000
EBIT 9,517,000,000
Tax Provision 1,637,000,000
Depreciation and Amortization 2,479,000,000
Capital Expenditure -1,918,000,000
Unlevered Free Cash Flow 8,538,707,668
Current Assets 31,042,000,000
Current Cash 3,458,000,000
Current Liabilities 26,250,000,000
Current Debt 1,916,000,000
Non-Cash Working Capital (NCWC) 3,250,000,000
Change in NCWC -2,609,000,000
EBIT 10,338,000,000
Tax Provision 3,317,000,000
Depreciation and Amortization 2,475,000,000
Capital Expenditure -2,224,000,000
Unlevered Free Cash Flow 4,009,738,798
Current Assets 30,378,000,000
Current Cash 2,547,000,000
Current Liabilities 23,169,000,000
Current Debt 1,197,000,000
Non-Cash Working Capital (NCWC) 5,859,000,000
Change in NCWC 158,000,000
EBIT 9,454,000,000
Tax Provision 3,386,000,000
Depreciation and Amortization 2,092,000,000
Capital Expenditure -2,367,000,000
Unlevered Free Cash Flow 5,621,674,558
Current Assets 25,983,000,000
Current Cash 2,515,000,000
Current Liabilities 19,027,000,000
Current Debt 1,260,000,000
Non-Cash Working Capital (NCWC) 5,701,000,000
Change in NCWC -583,000,000
EBIT 8,799,000,000
Tax Provision 3,033,000,000
Depreciation and Amortization 1,931,000,000
Capital Expenditure -2,136,000,000
Unlevered Free Cash Flow 4,535,177,259
Current Assets 25,325,000,000
Current Cash 4,177,000,000
Current Liabilities 15,425,000,000
Current Debt 561,000,000
Non-Cash Working Capital (NCWC) 6,284,000,000
Change in NCWC 907,000,000
EBIT 8,037,000,000
Tax Provision 2,928,000,000
Depreciation and Amortization 1,870,000,000
Capital Expenditure -1,984,000,000
Unlevered Free Cash Flow 5,704,025,504
Current Assets 19,852,000,000
Current Cash 1,380,000,000
Current Liabilities 13,790,000,000
Current Debt 695,000,000
Non-Cash Working Capital (NCWC) 5,377,000,000
Change in NCWC -649,000,000
EBIT 7,228,000,000
Tax Provision 2,441,000,000
Depreciation and Amortization 1,753,000,000
Capital Expenditure -2,030,000,000
Unlevered Free Cash Flow 3,511,623,912

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