Comparison to Current Market Capitalization: Company is CVS Health- Info Below

On the Key Statistics page in Yahoo! Finance identify and indicate the Market Capitalization ("market cap"). What does this value represent?

Compare the market cap to your calculated value.

To compare the market cap from Yahoo! Finance to the firm value you calculated in the previous section above you need to first subtract the value of the debt from your firm value calculation.

How does your intrinsic value (less debt) compare to the market cap of the company on Yahoo! Finance?

What might account for any differences between these two values?

Conduct a Sensitivity Analysis:Vary the following inputs to the two-tier valuation model and indicate the new valuation amount and the percentage change from the above "base" case.Free Cash Flows

Increase the FCF by 10%

Decrease the FCF by 10%

Terminal Growth Rate

Increase the Terminal Growth Rate from 2.5% to 3.5%

Decrease the Terminal Growth Rate from 2.5% to 1.5%

WACC

Add 2% to the WACC (that is if the WACC is 7.5% make it 9.5%)

Subtract 2% from the WACC (that is if the WACC is 7.5% make it 5.5%)

Observations

State your observations from the sensitivity analysis. How important (conceptually) is the terminal growth rate to overall value? How important is the WACC to overall value?

Valuation Measures

Market Cap (intraday) 5	71.11B
Enterprise Value 3	89.56B
Trailing P/E	10.86
Forward P/E 1	10.46
PEG Ratio (5 yr expected) 1	1.49
Price/Sales (ttm)	0.38
Price/Book (mrq)	1.88
Enterprise Value/Revenue 3	0.49
Enterprise Value/EBITDA 6	7.15

Financial Highlights

Fiscal Year

Fiscal Year Ends	Dec 31, 2017
Most Recent Quarter (mrq)	Dec 31, 2017

Profitability

Profit Margin	3.58%
Operating Margin (ttm)	5.44%

Management Effectiveness

Return on Assets (ttm)	6.62%
Return on Equity (ttm)	17.79%

Income Statement

Revenue (ttm)	184.77B
Revenue Per Share (ttm)	181.14
Quarterly Revenue Growth (yoy)	5.30%
Gross Profit (ttm)	28.55B
EBITDA	12.53B
Net Income Avi to Common (ttm)	6.61B
Diluted EPS (ttm)	6.44
Quarterly Earnings Growth (yoy)	92.60%

Balance Sheet

Total Cash (mrq)	1.81B
Total Cash Per Share (mrq)	1.79
Total Debt (mrq)	27.03B
Total Debt/Equity (mrq)	71.69
Current Ratio (mrq)	1.02
Book Value Per Share (mrq)	37.17

Cash Flow Statement

Operating Cash Flow (ttm)	8.01B
Levered Free Cash Flow (ttm)	6.08B

Trading Information

Stock Price History

Beta	0.92
52-Week Change 3	-16.68%
S&P500 52-Week Change 3	11.86%
52 Week High 3	84.00
52 Week Low 3	60.14
50-Day Moving Average 3	64.73
200-Day Moving Average 3	70.95

Share Statistics

Avg Vol (3 month) 3	8.76M
Avg Vol (10 day) 3	8.01M
Shares Outstanding 5	1.02B
Float	1.01B
% Held by Insiders 1	0.17%
% Held by Institutions 1	85.90%
Shares Short 3	25.58M
Short Ratio 3	2.57
Short % of Float 3	2.48%
Shares Short (prior month) 3	24.84M

Dividends & Splits

Forward Annual Dividend Rate 4	2
Forward Annual Dividend Yield 4	3.15%
Trailing Annual Dividend Rate 3	2.00
Trailing Annual Dividend Yield 3	2.91%
5 Year Average Dividend Yield 4	1.70
Payout Ratio 4	31.01%
Dividend Date 3	May 3, 2018
Ex-Dividend Date 4	Apr 20, 2018
Last Split Factor (new per old) 2	2/1
Last Split Date 3	Jun 7, 2005