Is CVS stock undervalued compared to Walmart?

Yes, CVS trades at a P/E of 12x while Walmart trades above 25x, suggesting CVS may be undervalued.

What is the expected forward P/E for CVS?

The expected forward P/E for fiscal 2026 is approximately 9x.

Is CVS Health Stock Worth Its Current Price? A Fair Value Analysis

CVS Health stock appears expensive based on trailing earnings, but when considering future expected earnings, the stock may be undervalued.

July 16, 2026

2 min read

Source: Trefis

CVS Health (NYSE: CVS) stock appears relatively expensive based on its current price-to-earnings ratio, but according to Trefis analysis, the real price of admission may be lower than it seems for patient investors.

Current Valuation

CVS stock currently trades at a P/E ratio of about 12x based on last year's earnings, which is above its historical average of 10x. This may lead some investors to believe the stock is overpriced.

Looking at Future Earnings

When looking at expected earnings for fiscal 2026, the forward P/E drops to approximately 9x, well below the sector average. This means an investor buying today pays less for each dollar of future earnings.

Comparison with Peers

Compared to Walmart (NYSE: WMT) which trades at a P/E above 25x, CVS appears significantly undervalued. Even considering challenges in the healthcare sector, the valuation gap seems excessive.

What This Means for Investors

For investors with a long-term horizon, CVS stock may present an attractive buying opportunity. However, risks related to the healthcare sector and potential regulatory changes should be considered.

Frequently Asked Questions

CVS stock currently has a trailing P/E ratio of about 12x based on last year's earnings.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.