Healthcare Plans. Scored on the same transparent model behind the daily rankings.
★
CVS
CVS Health Corporation · Healthcare Plans
52.2Score
$86.16Oct 9 close$110.2B
1Y Target$115.76Analyst consensus · 25 analysts
5Y Target$146.14Compound horizon
10Y Target$187.43Long-dated conviction
FCF$11.8bTTM · 06/26A-
FCF $11.8b — top-quartile, exceptional for any sector · Trailing twelve months to 06/26 (operating cash flow − capex).
Rev+7.8%FY YoYB
Revenue +7.8% — at or above S&P median · Computed from the last two annual revenue figures (FY YoY).
D/E0.96C
D/E 0.96 — more levered than most Healthcare peers (≈90th pctile)
P/E22.7xB+
P/E 22.7 — below the Healthcare median (≈40th pctile)
PEG0.21A
PEG 0.21 — exceptional; paying well under fair value for growth
Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology
Quality-growth score · 52.2
Quality44.9
Growth70.3
Value45.1
Entry · Margin of safety
52-week rangeMid-range
22% off the 12-month high
vs DCF fair value61% belowest. fair value ~$219
What the price assumes: free cash flow shrinking about 15% next year, then recovering toward 4% a year by year ten — vs a starting rate of ~8% our model takes as the middle of three readings — analyst estimates, last year's revenue growth, and the company's own multi-year record.
Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards
Why now
Healthcare Plans · market cap $110.2b. Down 22% from 52-week high of $110.68 — deep drawdown territory. PEG 0.21 — paying under fair value for the growth rate. 25 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $115.76 (implying +34% upside).
Moat
Free cash flow runs well ahead of reported net income, mostly because of depreciation and amortization ($4.5b) — non-cash charges that hold down reported earnings while cash generation stays strong. $110.2b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Net margin 1.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 6% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Horizon
1-3 yr $115.76 (25-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $146.14 at ~11% CAGR — dividend compounding plus earnings growth. 10 yr $187.43 if the moat survives secular pressure.
CVS vs the Top Picks average
Pillar
CVS
Book avg
Diff
Quality
45
83
-38
Growth
70
89
-19
Value
45
76
-31
Average of today's Top 30 (mean score 82.6); size and sector limits also decide the book.
Score history · CVS
Trend
-1.6 over 81 daily scores
From 53.8 (Jun 22) → 52.2 (now)
One point per daily run; read From → To for the actual range.
CVS at a glance
Same audited fundamentals as the score, unless a card says otherwise.
Analyst estimate revisions
30-day change
+0.1%
90-day change
+1.7%
Forward EPS estimate
$8.53
Over the last 90 days, what analysts expect CVS to earn is drifting higher (+1.7%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →
Position sizing · CVS
$
%
%
Shares to buy
23
Position size
$1,982
4.0% of portfolio
Stop price
$64.62
25% below $86.16
$ at risk if stopped
$495.42
budget $500.00 · 1% of portfolio
Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.
CVS Health Corporation (CVS): score, valuation & FAQ
CVS Health Corporation (CVS) is a Healthcare Plans company that scores 52.2 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are PEG (A), FCF (A-) and P/E (B+). On valuation, CVS sits about 61% below our discounted-cash-flow fair value (a margin of safety) — the current price implies free cash flow shrinking about 15% next year, then recovering toward 4% a year by year ten.
Is CVS a good stock to buy?
Bull Rankings scores CVS 52.2 out of 100 on its quality-growth model, which is a middling reading. That is driven by PEG (A), FCF (A-) and P/E (B+). A score is a quantitative screen of CVS Health Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does CVS score 52.2 on Bull Rankings?
The score leans on growth at 70.3 out of 100, with quality the weakest pillar at 44.9 — the three combine geometrically, so a weak one cannot be papered over by a strong one. CVS earns its highest marks on PEG (A), FCF (A-) and P/E (B+). Each signal is graded against sector-aware thresholds rather than one absolute bar, so CVS is measured against Healthcare Plans peers, not against the market as a whole.
Is CVS overvalued or undervalued?
Based on $86.16, CVS sits about 61% below our discounted-cash-flow fair value (a margin of safety) — the current price implies free cash flow shrinking about 15% next year, then recovering toward 4% a year by year ten. It trades at a 22.7x P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in CVS?
Net margin 1.2% is thin — operating leverage cuts both ways; input-cost inflation or pricing pressure hits the bottom line first. ROE 6% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.