CVS Health Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income attributable to CVS Health	4,614)	8,344)	4,149)	7,910)	7,179)
Net (income) loss attributable to noncontrolling interests	(28)	24)	16)	(12)	13)
Net noncash charges	4,412)	5,043)	5,009)	6,419)	5,514)
Change in operating assets and liabilities, net of effects from acquisitions	109)	15)	7,003)	3,948)	3,159)
Net cash provided by operating activities	9,107)	13,426)	16,177)	18,265)	15,865)
Interest paid, net of tax¹	2,170)	1,811)	1,657)	1,872)	2,140)
Purchases of property and equipment	(2,781)	(3,031)	(2,727)	(2,520)	(2,437)
Free cash flow to the firm (FCFF)	8,496)	12,206)	15,107)	17,617)	15,568)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the CVS Health Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	CVS Health Corp. FCFF decreased from 2022 to 2023 and from 2023 to 2024.

CVS Health Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR¹	25.40%	25.10%	26.00%	24.20%	26.30%
Interest Paid, Net of Tax
Interest paid, before tax	2,909)	2,418)	2,239)	2,469)	2,904)
Less: Interest paid, tax²	739)	607)	582)	597)	764)
Interest paid, net of tax	2,170)	1,811)	1,657)	1,872)	2,140)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² 2024 Calculation
Interest paid, tax = Interest paid × EITR
= 2,909 × 25.40% = 739

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CVS Health Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	141,269)
Free cash flow to the firm (FCFF)	8,496)
Valuation Ratio
EV/FCFF	16.63
Benchmarks
EV/FCFF, Competitors¹
Abbott Laboratories	34.45
Cigna Group	11.57
Elevance Health Inc.	17.18
Intuitive Surgical Inc.	135.70
Medtronic PLC	22.49
UnitedHealth Group Inc.	22.70
EV/FCFF, Sector
Health Care Equipment & Services	22.65
EV/FCFF, Industry
Health Care	22.95

Based on: 10-K (reporting date: 2024-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

CVS Health Corp., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	135,154)	146,035)	151,066)	181,495)	146,595)
Free cash flow to the firm (FCFF)²	8,496)	12,206)	15,107)	17,617)	15,568)
Valuation Ratio
EV/FCFF³	15.91	11.96	10.00	10.30	9.42
Benchmarks
EV/FCFF, Competitors⁴
Abbott Laboratories	35.21	36.51	23.24	23.47	36.94
Cigna Group	10.77	10.44	13.38	14.17	9.16
Elevance Health Inc.	15.57	14.19	13.32	12.74	6.04
Intuitive Surgical Inc.	153.43	170.92	85.45	56.01	76.70
Medtronic PLC	20.58	26.54	20.32	33.84	21.43
UnitedHealth Group Inc.	20.57	17.59	19.30	22.21	15.82
EV/FCFF, Sector
Health Care Equipment & Services	21.76	18.86	17.40	19.23	15.32
EV/FCFF, Industry
Health Care	22.99	24.06	17.76	17.08	18.03

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 135,154 ÷ 8,496 = 15.91

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	CVS Health Corp. EV/FCFF ratio increased from 2022 to 2023 and from 2023 to 2024.

CVS Health Corp. (NYSE:CVS)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical