Intrinsic Value Of The Cvs Health Corporation

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For this project analysis I will attempt to calculate the intrinsic value of the CVS Health Corporation by conducting a two-stage DCF company-level valuation analysis, I will compare my results to the current market capitalization of the company as shown on the Yahoo Finance web page. Finally, I will perform a sensitivity analysis using variables such as free cash flow, terminal growth rate and WACC.
Calculate intrinsic Value of your Company: Discount cash flow method This is an important valuation method used to estimate the desirability of an investment opportunity. Discounted cash flow (DCF) analysis uses future free cash flow projections and discounts them (using the weighted average cost of capital) to arrive at a present value. The calculated present value is then used to evaluate the potential for investment. For this project, the DCF analysis will be used to evaluate the intrinsic value of the CVS health corporation (“DCF,” n.d.).
Intrinsic Value of CVS Health Corporation:
The intrinsic value of a company is what the company is actually worth. As mentioned above, to calculate the Intrinsic Value of CVS Health Corporation, I will use the two-stage company-level Discounted Cash Flow (DCF) valuation model.
The intrinsic value for CVS Health (minus debt) is calculated as 78,750,096,600 dollars (78.75 Billion dollars). The intrinsic value was calculated using free cash flow, WACC for CVS, growth rate and all other pertinent valuation measures (yahoo

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