P/E Ratio
Updated 150h ago
Sector Performance
82th percentileCVS
44.8x
Sector Median
24.8x
Sector Avg
36.1x
Deep Analysis
The P/E ratio (price-to-earnings ratio) compares a stock’s current price to its earnings per share — a high number like 44.8x means investors are paying $44.80 for every $1 of earnings, indicating high expectations for future growth.
This is well above the sector median of 24.2x, placing CVS in the 82nd percentile among peers, meaning only 18% of sector stocks carry a higher valuation. While year-over-year data is not available, the ratio has increased 5.2% quarter over quarter from 42.6x to 44.8x, showing a rising valuation trend. The combination of a very high P/E (above peers) and a continuing upward move suggests increased risk — if earnings don't meet those lofty expectations, the stock could face a sharp correction. This elevated and rising valuation directly supports the overall CAUTIOUS verdict, as it implies a stretched price that offers little margin for error.
Frequently Asked Questions
What does the P/E Ratio tell investors about CVS?
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
How is the P/E Ratio calculated?
P/E Ratio is calculated as: Price / EPS.
Who are CVS's closest peers by P/E Ratio?
The closest peers by P/E Ratio include: VICI (9.1x), OMF (9.0x), JACK (8.5x), GIS (8.4x), FIS (8.4x).
The Formula
Price / EPS
Why It Matters
Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.
Master CVS's Valuation
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44.8x
Sector Median
24.8x
Sector Avg
36.1x
How CVS's P/E Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.