Is CVS Health Corp. overvalued or undervalued?

As of 15 August 2025, CVS Health Corp. has moved from a very expensive to an expensive valuation grade. The company appears to be overvalued based on its current metrics. The P/E ratio stands at 17, which is lower than the peer average of 19.83, while the EV to EBITDA ratio is 9.97 compared to the peer average of 10.64. Additionally, the Price to Book Value is 1.39, indicating a premium over its book value.
In comparison to its peers, CVS Health Corp. shows a relatively lower valuation on key ratios, suggesting it may not be as attractive as its competitors. Notably, the company has a dividend yield of 239.67%, which is significantly high, but this may not be enough to offset the valuation concerns. Over the past year, CVS Health Corp. has returned 27.39%, outperforming the S&P 500's 17.14%, but its longer-term performance has lagged significantly, particularly over three and five years.