Cvs Health Corp
CVSAbove valueHeld by 14 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +7.8%
- Net margin
- 0.4%
- ROE
- 2.4%
- FCF margin
- 1.9%
Valuation · value band
Above fair value
Zero-growth floor
$20
Central IV
$39
Optimistic top
$45
Cvs Health Corp (CVS): A conservative value band $20–$45 / sh (zero-growth floor to growth-capped optimistic top); central read about $39. Today’s price sits above that band (price $94 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
- Recent earnings are below the multi-year average, so the band uses the lower run-rate.
Revenue growth 0% (history declining, capped at zero) · moat 10 yr · discount 12.8% · Zero-growth downside $20
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $35.25 – $44.05 · Greenwald zero-growth $44.67 · zero-growth base $44.67 · reproduction $19.15
Moat Franchise (moat) · terminal value 30% of present value · owner-earnings yield 5% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$20.43 – $33.28 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 114% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).
Buffett owner-earnings value$37.92 – $44.67 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 11.2–13.2% band (9–11% base + 2.2pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 114% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 2.2pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 7.5 years of owner earnings, adding 2.2pp of cost-of-equity risk premium.
Asset floor: Reproduction value = tangible net assets + acquired-intangible reset proxy, ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise (no R&D history to capitalize).
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.
Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 7.5 years of owner earnings → +2.2pp cost-of-equity premium → effective 11.2%–13.2%.
Owner-earnings DCF: growth g₁ 0% (history declining → capped at 0) · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 11.39%–14.23% (DGS10 +4.5% to a 12% strict end, each +2.23pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 17.8% a year in owner-earnings for the next few years. Revenue actually grew 8.5% a year.
The market wants it well ahead of its own track record.
Roughly, the price needs its historical revenue growth to run about 26 more years to hold up.
Even when the value band is low-confidence: use this to see what the price assumes — not as a cheapness confirmation.
SEC 13F · holders
Superinvestors Holding This Security
14 holders · $8.63B combined · this quarter +1 opened / -2 exited
- Value$5.17BWeight (prev→now)2.0% → 2.7% ▲
- Value$1.23BWeight (prev→now)4.0% → 5.3% ▲
- Value$1.22BWeight (prev→now)3.2% → 3.6% ▲
- Value$379.0MWeight (prev→now)New · 1.1%
- Value$280.5MWeight (prev→now)10.0% → 10.6% ▲
- Value$127.8MWeight (prev→now)3.6% → 4.2% ▲
- Value$75.5MWeight (prev→now)0.6% → 0.8% ▲
- Value$56.0MWeight (prev→now)0.1% → 0.1% ▲
- Value$45.6MWeight (prev→now)0.2% → 0.2% ▼
- Value$34.7MWeight (prev→now)0.0% → 0.0% ▼
Show all 14 holders ▸Collapse ▾
- Value$5.7MWeight (prev→now)3.4% → 4.2% ▲
- Value$3.6MWeight (prev→now)0.9% → 0.8% ▼
- Value$638,804Weight (prev→now)0.0% → 0.1% ▲
- Value$490,870Weight (prev→now)0.0% → 0.0% ▲
SEC 13F · notes
Written summary
Written summary
Cvs Health Corp (CVS) is held by 14 of the superinvestors tracked on Compounder, with a combined $8.63B in reported 13F value. The largest position belongs to Dodge & Cox, where it makes up 2.7% of the portfolio.
Other notable holders by value include Christopher Davis (5.3% of its book), Richard Pzena (3.6% of its book) and Andreas Halvorsen (1.1% of its book).
Over the latest quarter, 1 of the tracked filers opened a new position in CVS, 1 added to existing ones, 8 trimmed, and 2 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Cvs Health Corp (CVS) also commonly hold →
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Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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