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EV/EBITDA-We computed a 5-year average EV/EBITDA (2017-2021) of each company within CVS Health's peer group. The mean of these averages was 11.5x, and this value
EV/EBITDA-We computed a 5-year average EV/EBITDA (2017-2021) of each company within CVS Health's peer group. The mean of these averages was 11.5x, and this value was multiplied by the forecasted EBITDA of $20.4 billion to arrive at an enterprise value of $234 billion. From this we subtracted total debt and added cash and cash equivalents. This resulted in shareholder's equity of $166.8 billion; dividing by shares outstanding of 1.329 billion gave us an intrinsic value of $125.47. This suggests a MOS of 19.60%. Price/Book-We computed a 5-year average P/B (2017-2021) of each company within CVS Health's peer group. The mean of these averages was 2.7x, and this value was multiplied by the forecasted BVPS of $53.75. This resulted in an intrinsic value of $146.01, which suggests a MOS of 30.91%. Forward P/E -We computed a 5-year average Forward P/E (2017-2021) of each company within CVS Health's peer group. The mean of these averages was 12.5x, and this value was multiplied by the forecasted EPS of $8.60. This resulted in an intrinsic value of $107.24, which suggests a MOS of 5.93%. Summary (Current Price of \$100.88) WHERE DID THE MOS COME FROM AND HOW DID THEY GET THE TARGET PRICE? And where does th weight come from? Where did the SUMMARY: Current price come from?|
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