Latest Ratios: P/E Ratio 62.7x · EV/EBITDA 13.1x · ROE 2.3%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $111.1B | $100.9B | $56.7B | $101.9B | $123.3B | $137.1B | $89.7B | $96.9B | $68.4B | $74.2B | $85.1B |
| Enterprise Value | $196.2B | $185.9B | $131.0B | $173.0B | $181.1B | $203.7B | $166.9B | $180.3B | $137.8B | $99.5B | $109.3B |
| P/E Ratio → | 62.66 | 57.09 | 12.27 | 12.20 | 28.59 | 17.34 | 12.51 | 14.62 | — | 11.26 | 16.10 |
| P/S Ratio | 0.28 | 0.25 | 0.15 | 0.28 | 0.38 | 0.47 | 0.33 | 0.38 | 0.35 | 0.40 | 0.48 |
| P/B Ratio | 1.47 | 1.34 | 0.75 | 1.33 | 1.72 | 1.82 | 1.29 | 1.51 | 1.17 | 1.97 | 2.31 |
| P/FCF | 14.24 | 12.92 | 8.96 | 9.80 | 9.17 | 8.71 | 6.68 | 9.33 | 10.02 | 12.19 | 10.75 |
| P/OCF | 10.45 | 9.48 | 6.22 | 7.59 | 7.62 | 7.51 | 5.66 | 7.55 | 7.72 | 9.27 | 8.40 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.46 | 0.35 | 0.48 | 0.56 | 0.70 | 0.62 | 0.70 | 0.71 | 0.54 | 0.62 |
| EV / EBITDA | 13.09 | 12.40 | 9.99 | 9.56 | 14.87 | 11.45 | 9.10 | 11.02 | 20.44 | 8.28 | 8.50 |
| EV / EBIT | 18.89 | 35.38 | 14.38 | 12.51 | 22.29 | 15.62 | 13.17 | 14.98 | 34.23 | 10.67 | 11.25 |
| EV / FCF | — | 23.82 | 20.71 | 16.65 | 13.46 | 12.94 | 12.43 | 17.35 | 20.18 | 16.35 | 13.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 13.8% | 13.8% | 13.8% | 15.2% | 16.9% | 17.8% | 18.3% | 17.7% | 16.2% | 15.4% | 16.2% |
| Operating Margin | 2.6% | 2.6% | 2.3% | 3.8% | 2.5% | 4.6% | 5.2% | 4.7% | 2.1% | 5.2% | 5.8% |
| Net Profit Margin | 0.4% | 0.4% | 1.2% | 2.3% | 1.3% | 2.7% | 2.7% | 2.6% | -0.3% | 3.6% | 3.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.3% | 2.3% | 6.1% | 11.2% | 5.9% | 11.0% | 10.7% | 10.8% | -1.2% | 17.8% | 14.4% |
| ROA | 0.7% | 0.7% | 1.8% | 3.5% | 1.9% | 3.5% | 3.2% | 3.2% | -0.4% | 7.0% | 5.7% |
| ROIC | 5.0% | 5.0% | 4.3% | 7.4% | 4.4% | 6.9% | 7.1% | 6.5% | 3.2% | 11.5% | 12.6% |
| ROCE | 6.1% | 6.1% | 5.0% | 8.3% | 4.9% | 8.0% | 8.2% | 7.5% | 3.7% | 14.4% | 15.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.24 | 1.24 | 1.09 | 1.04 | 0.99 | 1.01 | 1.22 | 1.39 | 1.25 | 0.72 | 0.75 |
| Debt / EBITDA | 6.24 | 6.24 | 6.32 | 4.38 | 5.81 | 4.27 | 4.63 | 5.44 | 10.90 | 2.25 | 2.14 |
| Net Debt / Equity | — | 1.13 | 0.98 | 0.93 | 0.81 | 0.88 | 1.11 | 1.30 | 1.18 | 0.67 | 0.66 |
| Net Debt / EBITDA | 5.68 | 5.68 | 5.67 | 3.93 | 4.75 | 3.74 | 4.21 | 5.09 | 10.29 | 2.11 | 1.88 |
| Debt / FCF | — | 10.90 | 11.75 | 6.85 | 4.30 | 4.23 | 5.75 | 8.02 | 10.16 | 4.16 | 3.05 |
| Interest Coverage | 1.68 | 1.68 | 3.08 | 5.20 | 3.55 | 5.21 | 4.36 | 3.96 | 1.54 | 8.79 | 9.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.84 | 0.84 | 0.81 | 0.86 | 0.95 | 0.88 | 0.91 | 0.94 | 1.03 | 1.02 | 1.18 |
| Quick Ratio | 0.63 | 0.63 | 0.60 | 0.63 | 0.67 | 0.62 | 0.61 | 0.62 | 0.65 | 0.52 | 0.62 |
| Cash Ratio | 0.12 | 0.12 | 0.13 | 0.14 | 0.23 | 0.18 | 0.18 | 0.15 | 0.15 | 0.06 | 0.13 |
| Asset Turnover | — | 1.54 | 1.47 | 1.43 | 1.41 | 1.25 | 1.16 | 1.15 | 0.99 | 1.94 | 1.88 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.1% | 3.4% | 6.0% | 3.1% | 2.4% | 1.9% | 2.9% | 2.7% | 3.0% | 2.8% | 2.2% |
| Payout Ratio | 192.1% | 192.1% | 73.1% | 37.5% | 67.4% | 32.8% | 36.6% | 39.2% | — | 30.9% | 34.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.6% | 1.8% | 8.2% | 8.2% | 3.5% | 5.8% | 8.0% | 6.8% | — | 8.9% | 6.2% |
| FCF Yield | 7.0% | 7.7% | 11.2% | 10.2% | 10.9% | 11.5% | 15.0% | 10.7% | 10.0% | 8.2% | 9.3% |
| Buyback Yield | 0.0% | 0.0% | 5.3% | 2.0% | 2.8% | 0.0% | 0.0% | 0.0% | 0.0% | 5.9% | 5.2% |
| Total Shareholder Yield | 3.1% | 3.4% | 11.3% | 5.1% | 5.2% | 1.9% | 2.9% | 2.7% | 3.0% | 8.6% | 7.4% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.3B | $1.0B | $1.0B | $1.1B |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying CVS stock.
CVS Health Corp.'s current P/E ratio is 62.7x. The historical average is 27.0x. This places it at the 97th percentile of its historical range.
CVS Health Corp.'s current EV/EBITDA is 13.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.7x.
CVS Health Corp.'s return on equity (ROE) is 2.3%. The historical average is 11.3%.
Based on historical data, CVS Health Corp. is trading at a P/E of 62.7x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
CVS Health Corp.'s current dividend yield is 3.07% with a payout ratio of 192.1%.
CVS Health Corp. has 13.8% gross margin and 2.6% operating margin.
CVS Health Corp.'s Debt/EBITDA ratio is 6.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated medical utilization and regulatory scrutiny
Metrics are mathematically derived from official filings.
Underwriting Margin Recovers from Utilization Spike
CVS's combined ratio improved to 95.6% in 2026Q2 from 103.1% in 2025Q3, driven by a lower loss ratio of 85.2%, as reported in the latest quarterly data.
The sharp recovery from the 2025Q3 underwriting loss, where the combined ratio exceeded 100%, suggests that the elevated medical utilization experienced in that period may have been temporary. However, the loss ratio remains above the 84-85% range seen in early 2025, indicating that utilization pressures have not fully abated. Investors should monitor whether the 95% combined ratio is sustainable or if it reflects favorable prior-year reserve development.
ROE Recovery Tempered by Thin Margins
ROE rebounded to 3.8% in 2026Q2 from a negative -5.3% in 2025Q3, but remains well below the 13.5% ROE of UnitedHealth, as per the peer comparison data.
The recovery in ROE is primarily driven by improved underwriting profitability, as investment income appears minimal. However, the absolute level of ROE is low, reflecting the company's thin net margin of 0.44% and high leverage. The gap to peers like UNH suggests that CVS's integrated model is not yet generating the same level of profitability, possibly due to integration costs and competitive pressures in the PBM and retail segments.
Expense Ratio Shows Scale but Not Enough
CVS's expense ratio improved to 10.4% in 2026Q2 from 16.5% in 2025Q3, indicating better cost control, yet it remains above the 10% threshold, as per the quarterly data.
The reduction in the expense ratio from the 2025Q3 spike suggests that the company has regained operational efficiency, likely through cost-cutting measures and scale benefits. However, the ratio is still higher than the 10.4% level seen in 2026Q1, indicating that there is limited room for further improvement without significant revenue growth. The efficiency gains appear to be offset by ongoing investments in technology and care delivery, which may be necessary to compete with more efficient peers like Elevance.
High Leverage Caps Financial Flexibility
Debt-to-equity stands at 0.96 in 2026Q2, down from 1.24 in 2025Q4, but remains above the peer average of 0.75, as reported in the balance sheet data.
The reduction in leverage is a positive sign, but the absolute level remains high, limiting the company's ability to absorb adverse developments or pursue further acquisitions. The interest coverage ratio of 6.25 in 2026Q2 is adequate, but it was negative in 2025Q3, highlighting the vulnerability to earnings volatility. Investors should monitor the company's ability to deleverage further, especially given the potential for regulatory changes that could impact cash flows.
Valuation Discount Reflects Execution Risk
CVS trades at a forward P/E of 12.38 and P/B of 1.60, versus UnitedHealth's 30.66 and 3.63, respectively, indicating a significant discount, as per the peer data.
The discount to peers like UNH and ELV suggests that the market is pricing in higher execution risk and lower profitability expectations. While CVS's P/B is lower than peers, its ROE is also lower, which justifies some discount. However, the forward P/E of 12.38 implies that the market expects earnings to recover strongly, which may be optimistic given the persistent utilization headwinds. The discount may also reflect concerns about the sustainability of the integrated model and regulatory risks.
Combined Ratio Masks Reserve Volatility
The combined ratio of 95.6% in 2026Q2 appears favorable, but prior-year reserve releases may be flattering the loss ratio, as evidenced by the 2025Q3 net loss, per the income statement data.
Investors should not rely solely on the combined ratio, as it can be distorted by reserve development. The 2025Q3 loss, despite a combined ratio of 103.1%, suggests that the company may have strengthened reserves, which could indicate that current loss ratios are understated. An alternative metric is the calendar-year loss ratio adjusted for reserve development, which would provide a clearer picture of underlying underwriting performance. Additionally, the high goodwill on the balance sheet warrants monitoring for potential impairments that could impact book value.