Discounted Cash Flow

CVS Health Corp.

CVS · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $177.5b $5.3b $7.8b 3.0% $4.93
2017 $184.8b (4.1%) $6.6b (24.5%) $6.1b (-22.4%) 3.6% (19.7%) $6.47 (31.2%)
2018 $193.9b (5.0%) $-594.0m (-109.0%) $6.8b (12.1%) -0.3% (-108.5%) $-0.57 (-108.8%)
2019 $256.8b (32.4%) $6.6b (1216.8%) $10.4b (52.2%) 2.6% (943.4%) $5.10 (994.7%)
2020 $268.7b (4.6%) $7.2b (8.2%) $13.4b (29.2%) 2.7% (3.4%) $5.48 (7.5%)
2021 $292.1b (8.7%) $7.9b (10.2%) $15.7b (17.3%) 2.7% (1.4%) $6.00 (9.5%)
2022 $322.5b (10.4%) $4.1b (-47.5%) $13.4b (-14.6%) 1.3% (-52.5%) $3.16 (-47.3%)
2023 $357.8b (10.9%) $8.3b (101.1%) $10.4b (-22.7%) 2.3% (81.3%) $6.49 (105.4%)
2024 $372.8b (4.2%) $4.6b (-44.7%) $6.3b (-39.1%) 1.2% (-46.9%) $3.67 (-43.5%)
2025 $402.1b (7.8%) $1.8b (-61.7%) $7.8b (23.4%) 0.4% (-64.5%) $1.40 (-61.9%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model