CVS Health Corporation PEG Ratio
Data as of June 01, 2026
PEG Ratio
0.26
PE Ratio (TTM)
39.90
EPS (TTM)
$2.28
Sector
Healthcare
How It's Calculated
0.26 = 39.90 ÷ Growth Rate
What This Means
CVS Health Corporation's PEG ratio of 0.26 is below 1, suggesting the stock may be undervalued relative to its earnings growth rate. A PEG below 1 often signals a buying opportunity.
About CVS Health Corporation
CVS Health Corporation (CVS) operates in the Healthcare sector, specifically in Healthcare Plans. With a market capitalization of about $116.08B, it ranks as a large-cap stock — a major established company.
Shares recently traded near $90.98, within a 52-week range of $58.50 to $98.43 (-7.6% from the high, +55.5% from the low). Beta of 0.59 indicates relatively lower volatility versus the market.
Trailing profit margin is about 0.7%, signaling modest profitability that investors should weigh against growth plans.
Understanding This Metric
The PEG ratio adjusts the PE multiple for expected earnings growth, helping compare fast-growing and slow-growing names on a more equal footing. For CVS Health Corporation, a PEG near 1 is often described as fairly valued relative to growth, though the growth estimate itself can change quickly with guidance revisions.
Sector Comparison
Among Healthcare names on our S&P 100 coverage, CVS Health Corporation's PEG ratio of 0.26 can be compared with peers such as LLY (1.48), JNJ (2.93), UNH (1.32). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Healthcare stocks.
Key Takeaways
- CVS is grouped in the Healthcare sector for peer comparisons.
- Recent beta of 0.59 suggests lower-than-market price sensitivity.
- Trailing profit margin of 0.7% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for CVS.
Other CVS Metrics
Frequently Asked Questions
What is CVS's PEG ratio?
PEG adjusts PE for expected earnings growth: PEG ≈ PE ÷ earnings growth rate. CVS Health Corporation's PEG of 0.26 is a shorthand for growth-at-a-reasonable-price comparisons.
Does PEG suggest growth at a reasonable price?
PEG below 1.0 (0.26) is often described as inexpensive relative to growth expectations — verify the growth input is realistic.
What are limitations of PEG for CVS?
PEG depends on a single growth estimate, ignores balance sheet risk, and can mislead when earnings are volatile. Use it with PE, margins, and Healthcare peers — not as a standalone verdict.
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