CVS Health Corporation

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: $11.76B TTM free cash flow base; 3% annual FCF growth years 1-5; 2.5% years 6-10; 9% discount rate; 2% terminal growth; $62.35B net debt; 1.28B shares outstanding.

Reasoning: CVS Health generates large absolute free cash flow but carries heavy leverage and faces ongoing regulatory, PBM-reimbursement, and Medicare Advantage margin pressure, so conservative single-digit growth and a discount rate above the risk-free-plus-equity-premium baseline were used to reflect that elevated business risk.