Market Multiples Homework Use a P/E based market multiples approach to estimate what the market price per share should be as of 12/31/2015. Limit the data used to what is provided below. Express Scripts was exclusively a mail order pharmacy. The other three companies all have physical store locations with some mail order support, which was mostly contracted out to a mail order supplier. Reminder: net income is the same as earnings. Company Names ----> All $ in millions except per share data CVS Health Corporation Rite Aid Corp. Revenues Gross Margin Net Income EBITDA Total Assets Total Liabilities Market Cap (total market price of all shares) $153,290 17.31% $5,237 $10,954 $93,657 $56,461 $112,562 Walgreens Boots Alliance Inc $103,444 26.03% $4,220 $6,901 $68,782 $37,921 $89,558 Express Scripts Holding Co $101,752 8.26% $2,476 $4,968 $53,243 $35,871 $45,888 $26,528 28.56% $2,109 $1,123 $8,863 $8,806 $8,518 Number of shares outstanding as of 12/31/2015 (millions) Market price per share as of 12/31/2015 (rounded) 1,110 1,090 $82 665 $69 1,065 $8 Return on Sales Asset Turnover Financial Leverage Return on Equity 4.1% 2.0 2.2 18.2% 2.4% 8.0% 1.9 3.4 3.1 155.3 14.2% 4199.3% 1. Identify the benchmark company or companies for CVS you will use to value CVS. (briefly explain your choice)