Is CVS Health Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for CVS Health Corp. moved from very expensive to expensive, indicating a shift towards a less favorable valuation perspective. The company appears to be overvalued based on its current metrics, including a P/E ratio of 17, which is below the peer average of 19.83, and an EV to EBITDA ratio of 9.97, also lower than the peer comparison. Additionally, the Price to Book Value stands at 1.39, suggesting a premium over its book value.
In comparison to its peers, CVS Health Corp. is less favorably positioned, with its EV to Sales ratio of 0.43 indicating lower revenue generation relative to enterprise value. Notably, while CVS has shown strong short-term returns, outperforming the S&P 500 with a year-to-date return of 83.83% against 13.30%, its long-term performance over three and five years has lagged significantly behind the index. This mixed performance reinforces the notion that CVS Health Corp. is currently overvalued in the market.