DCF Tool

CVS

CVS Health Corp – Pharmacies and Drug Stores
CVS Health is a different kind of health care company. It is a diversified health services company with nearly 300,000 employees united around a common purpose of helping people on their path to better health. In an increasingly connected and digital world, it is meeting people wherever they are and changing health care to meet their needs. Built on a foundation of unmatched community presence, its diversified model engages one in three Americans each year. From its innovative new services at HealthHUB locations, to transformative programs that help manage chronic conditions, it is making health care more accessible, more affordable and simply better.
Analysis Results
Intrinsic Value $246.46
Latest Price $94.93
Relative Value 61% 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 8.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.4%, 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)
2022 9.14 8.67
2023 9.91 8.92
2024 10.7 9.18
2025 11.6 9.44
2026 12.6 9.71
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 380 billion. This corresponds to a present value of 277 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 45.9 billion. Adding in the terminal value gives a total present value of 323 billion.

There are presently 1.31 billion outstanding shares, so the intrinsic value per share is 246.46.

Financial Statements

The following data was to determine the past cash flows.

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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