CVS Health Corp
XMUN:CVS
EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (9.6), the stock would be worth €45.24 (31% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 14 | €65.73 |
0%
|
| 3-Year Average | 9.6 | €45.24 |
-31%
|
| 5-Year Average | 10 | €46.99 |
-29%
|
| Industry Average | 12.9 | €60.65 |
-8%
|
| Country Average | 14.4 | €67.57 |
+3%
|
Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
|
€143.8B
|
/ |
Jan 2026
$10.5B
|
= |
|
|
€143.8B
|
/ |
Dec 2026
$18B
|
= |
|
|
€143.8B
|
/ |
Dec 2027
$20B
|
= |
|
|
€143.8B
|
/ |
Dec 2028
$22.1B
|
= |
|
Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
CVS Health Corp
XMUN:CVS
|
96.8B EUR | 14 | 54.7 | |
| US |
C
|
Cigna Group
XMUN:CGN
|
67.3B EUR | 7.7 | 13.1 | |
| US |
|
Cigna Corp
NYSE:CI
|
70.4B USD | 0 | 11.8 | |
| DE |
|
Fresenius SE & Co KGaA
XETRA:FRE
|
26.5B EUR | 9.8 | 20.9 | |
| DE |
|
Fresenius Medical Care AG
XMUN:FME
|
23.1B EUR | 9.1 | 23.6 | |
| US |
|
Quest Diagnostics Inc
NYSE:DGX
|
22B USD | 12.3 | 22.3 | |
| US |
|
Laboratory Corporation of America Holdings
NYSE:LH
|
21.7B USD | 12 | 24.7 | |
| DE |
F
|
Fresenius Medical Care AG & Co KGaA
XETRA:FME
|
11B EUR | 5.4 | 11.4 | |
| US |
|
Guardant Health Inc
NASDAQ:GH
|
11.2B USD | -28.9 | -26.8 | |
| US |
|
DaVita Inc
NYSE:DVA
|
10.3B USD | 7.3 | 13.8 | |
| AU |
|
Sonic Healthcare Ltd
ASX:SHL
|
10.5B AUD | 15.4 | 19.4 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10 |
| Median | 14.4 |
| 70th Percentile | 21.5 |
| Max | 1 767 274.1 |
Other Multiples
CVS Health Corp
Glance View
CVS Health Corporation stands as a pivotal player in the healthcare landscape, tracing its roots back to the early 1960s as a modest chain of health and beauty stores. Evolving through strategic acquisitions and visionary leadership, it burgeoned into one of America’s foremost health solutions providers. The company operates through several segments, each contributing to a comprehensive healthcare ecosystem. Retail/LTC, its retail division, oversees a vast network of pharmacies nationwide, capitalizing on its trusted brand to serve millions of customers with prescriptions, over-the-counter medications, and everyday essentials. Through this extensive reach, CVS leverages its convenience and accessibility, capturing a significant share of consumer healthcare spending. However, CVS's business model doesn't stop at retail. It delves deeper into healthcare through its pharmacy benefits manager, Caremark, which provides employers and insurers with effective cost control for prescription drugs. Additionally, the landmark acquisition of Aetna, a leading health insurer, marked a strategic pivot towards vertically integrated healthcare services. This acquisition has enabled CVS not only to offer insurance products but also to streamline care with initiatives like MinuteClinics and HealthHUBs, aiming to reduce overall healthcare costs while improving patient outcomes. By intertwining its various services, CVS Health positions itself as a pioneer in the industry, standing at the intersection of healthcare delivery, pharmacy services, and insurance management, ultimately crafting synergies that aim to redefine the future of consumer health engagement.
