Is CVS Health Corp. overvalued or undervalued?

As of 17 October 2025, CVS Health Corp. has moved from very expensive to expensive, indicating a slight improvement in its valuation stance but still suggesting it is overvalued. The company is currently assessed as overvalued based on its P/E ratio of 17, which is below its peer average of approximately 19.83, and an EV to EBITDA ratio of 9.97, which also indicates a premium compared to its peers. Additionally, the Price to Book Value stands at 1.39, further supporting the notion of overvaluation.
In comparison to its peers, CVS Health Corp. exhibits a lower P/E ratio than the industry average, while its EV to EBITDA is slightly more favorable than some competitors, suggesting it may not be as attractive as it appears. Notably, the company's recent stock performance has outpaced the S&P 500, with a year-to-date return of 83.83% compared to the S&P 500's 13.30%, but this strong performance is overshadowed by a three-year return of -9.21% versus the S&P 500's 81.19%, highlighting potential volatility and risk.