Is CVS Health Corporation (CVS) Undervalued?
Based on the current stock price of $79.61 and a P/E ratio of 209.50,CVS Health Corporation has a PEG ratio of 9.20.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 9.20, CVS appears to be potentially overvalued relative to its growth rate of 22.78%.
Based on a PEG ratio of 8.02 (adjusted for dividends).
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How we analyzed CVS
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 209.50and dividing it by the annual growth rate of 22.78%.
PEG = 209.50 (P/E) ÷ 22.78 (Growth) = 9.20
Frequently Asked Questions about CVS
What is the current PEG Ratio for CVS Health Corporation (CVS)?+
The current PEG Ratio for CVS Health Corporation is 9.20. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is CVS stock undervalued right now?+
Based on the PEG ratio of 9.20, CVS Health Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for CVS?+
The PEGY ratio for CVS Health Corporation is 8.02. This metric accounts for dividend yield (3.34%), providing a more complete valuation picture.