Enterprise Value (EV)
Current Enterprise Value (EV)
CVS Health Corp., current enterprise value calculation
| Current share price (P) | $69.45 |
| No. shares of common stock outstanding | 1,265,019,429 |
| US$ in millions | |
| Common equity (market value)1 | 87,856) |
| Add: Preferred stock, par value $0.01; none issued or outstanding (per books) | —) |
| Add: Noncontrolling interests (per books) | 170) |
| Total equity | 88,026) |
| Add: Short-term debt (per books) | 2,119) |
| Add: Current portion of long-term debt (per books) | 3,624) |
| Add: Long-term debt, excluding current portion (per books) | 60,527) |
| Total equity and debt | 154,296) |
| Less: Cash and cash equivalents | 8,586) |
| Less: Investments | 2,407) |
| Enterprise value (EV) | 143,303) |
Based on: 10-K (reporting date: 2024-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 69.45 × 1,265,019,429
Historical Enterprise Value (EV)
CVS Health Corp., EV calculation
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 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of CVS Health Corp. Annual Report.
3 2024 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 63.22 × 1,260,795,063
An analysis of the financial valuation metrics from 2020 to 2024 reveals a cyclical trend characterized by a significant peak in 2021 followed by a sustained contraction. Enterprise value (EV) and total equity experienced substantial growth in the first year of the period before entering a multi-year period of decline.
- Equity Valuation Trends
- Common equity market value demonstrated significant volatility, increasing from 92,490 million in 2020 to a peak of 137,538 million in 2021. Subsequently, a consistent downward trend was observed, with the market value declining each year to reach 79,707 million by December 31, 2024. Total equity followed an almost identical trajectory, mirroring the market value fluctuations closely throughout the five-year period.
- Capital Structure and Combined Liabilities
- Total equity and debt peaked in 2021 at 194,020 million, coinciding with the peak in market equity. From 2022 through 2024, this metric declined steadily to 146,147 million. The reduction in total equity and debt suggests a contraction in the overall capital base or a strategic deleveraging process following the 2021 high.
- Enterprise Value Dynamics
- Enterprise value reached its maximum of 181,495 million in 2021, representing the high point of the company's overall valuation during the analyzed timeframe. By the end of 2024, the EV had contracted to 135,154 million. Notably, the enterprise value remained consistently lower than the sum of total equity and debt throughout the entire period, which indicates the persistent presence of a significant net cash position that offsets the total capitalization.
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