CVS PEG Ratio Analysis
Updated 365h ago·SEC filings & market data
Key Takeaway
The PEG ratio compares a stock’s price to its earnings growth rate; a value of 0.68x means CVS trades at a price that is 68% of its expected annual earnings growth — typically a sign of potential undervaluation.
Sector Performance
41th percentileCVS
0.68x
Sector Median
0.97x
Sector Avg
2.92x
Prior Period
0.65x(Jun 2026)
Deep Analysis
The PEG ratio compares a stock’s price to its earnings growth rate; a value of 0.68x means CVS trades at a price that is 68% of its expected annual earnings growth — typically a sign of potential undervaluation.
The sector median is 0.98x, placing CVS in the 39th percentile among peers, so it is cheaper than most in its industry. The year-over-year change is not available, but the quarter-over-quarter change is +4.6%, as the ratio rose from 0.65x to 0.68x. A low PEG ratio near 0.68x often points to a buying opportunity, but the slight upward trend suggests the valuation gap is narrowing rather than widening. This combination of a below-median level with a rising trend could imply limited further upside from here. The low PEG ratio contradicts the overall CAUTIOUS verdict, which would typically expect a higher or deteriorating metric to warrant caution.
Frequently Asked Questions
What does the PEG Ratio tell investors about CVS?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are CVS's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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0.68x
Sector Median
0.97x
Sector Avg
2.92x
How CVS's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.