Question
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
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 |
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