CVS

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Analyst Listing       Primary Input Data
Derived Input Data       Valuation Model Outcomes

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
Stephens Inc Ben Wyatt ben.wyatt@stephens.com
Susquehanna Financial Group Biju Perincheril biju.perincheril@sig.com
Johnson Rice & Company Charles Meade cmeade@jrco.com
Cowen & Company Charles Robertson charles.robertson@cowen.com
Piper Jaffray David Kistler david.w.kistler@simmonspjc.com
Wells Fargo Securities David Tameron david.tameron@wellsfargo.com
GMP Securities Derrick Whitfield dwhitfield@gmpsecurities.com
Credit Suisse Edward Westlake edward.westlake@credit-suisse.com
IBERIA Capital Partners Eric Fox eric.fox@iberiabank.com
Alembic Global Advisors James Sullivan james.sullivan@alembicglobal.com
KLR Group John Gerdes jjg@klrgroup.com
Jefferies Jonathan D. Wolff jwolff@jefferies.com
Raymond James Kevin Smith kevin.smith@raymondjames.com
Nomura Research Lloyd Byrne lloyd.byrne@nomura.com
Jefferies Mark Wiltamuth mwiltamuth@jefferies.com
Seaport Global Securities Michael Kelly mkelly@seaportglobal.com
Mitsubishi UFJ Securities (USA) Michael McAllister mmcallister@us.sc.mufg.jp
Oppenheimer Mohan Naidu mohan.naidu@opco.com
Wolfe Research Paul Sankey psankey@wolferesearch.com
Scotia Howard Weil Peter Kissel peter.kissel@scotiabank.com
BMO Capital Markets Phillip Jungwirth phillip.jungwirth@bmo.com
Capital One Securities Phillips Johnston phillips.johnston@capitalone.com
Deutsche Bank Research Ryan Todd ryan.todd@db.com
RBC Capital Markets Scott Hanold scott.hanold@rbccm.com
Evercore ISI Stephen Richardson stephen.richardson@evercoreisi.com
Guggenheim Securities Subash Chandra subash.chandra@guggenheimpartners.com
Wunderlich Securities Vedran Vuk vedranvuk@wundernet.com
Mizuho Securities USA Ann Hynes ann.hynes@us.mizuho-sc.com
Cowen & Company Charles Rhyee charles.rhyee@cowen.com
RBC Capital Markets David Francis david.francis@rbccm.com
Leerink Partners David Larsen david.larsen@leerink.com
SunTrust Robinson Humphrey David S. MacDonald david.macdonald@suntrust.com
Deutsche Bank Research George Hill george.hill@db.com
Guggenheim Securities John Heinbockel john.heinbockel@guggenheimpartners.com
Raymond James John W. Ransom john.ransom@raymondjames.com
Jefferies Mark Wiltamuth mwiltamuth@jefferies.com
Oppenheimer Mohan Naidu mohan.naidu@opco.com
Wells Fargo Securities Peter Costa peter.costa@wellsfargo.com
Credit Suisse Robert M. Willoughby robert.willoughby@credit-suisse.com
Atlantic Equities Sam Hudson s.hudson@atlantic-equities.com
Wolfe Research Scott Mushkin smushkin@wolferesearch.com
FBR Capital Markets & Co Steven Halper shalper@fbr.com

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Primary Input Data

 

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Derived Input Data

Derived Input

Label

2015  Value

2016  Value

Equational Form
Net Operating Profit Less Adjusted Taxes NOPLAT    6,305 6,910 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF  6,045 7,845 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS  340  416 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC  70,488  68,212 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 70,488 10.13% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv  17,355 199 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR 275.26% 2.88% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital WACCMarket 16.69% 10.42% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook 7.39% 9.44%
Enterprise value EVMarket 130,862 104,507  EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook 131,365  105,881
EV/EBIT Multiple \frac{EV_{Market}}{EBIT} 13.49  9.83 EV/EBIT\,=\,\frac { EV}{ EBIT}
Long-Run Growth g = IR x ROIC
   24.62%   0.29% Long-run growth rates of the income variable  are used in the Continuing Value portion of the valuation models.
 g = % \Delta GDP   2.50%   2.50%

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Valuation Model Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs and, depending on the equational form of any particular valuation model, may result in irrelevant or implausible results.  For example, in the event WACC < g, the value of this term, often found in the denominator of an equation’s continuation value term, will be expressly negative and may result in a negative overall valuation for the firm.  In the event of a WACC < g relation, the model form as applied to the subject firm offers an irrelevant outcome.

Valuation Model Type

Label

Equational form
Key Value Driver (NOPLAT) KVD (NOPLAT) { Value }_{ DCF/KVD }=\sum { \frac { NOPLAT_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { NOPLAT }_{ 1 }\left( 1-\frac { g }{ ROIC } \right) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Key Value Driver (FCF) KVD (FCF)
{ Value }_{ DCF/KVD }=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { NOPLAT }_{ 1 }\left( 1-\frac { g }{ ROIC } \right) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Free Cash Flow FCF { Value }_{ DCF/FCF }=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { FCF }_{ 1 }}{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Economic Profit ECON π { Value }_{ { ECON\pi } }= I{ C }_{ 0 }+\sum { \frac { { IC }_{ t-1 }(ROI{ C }_{t}-WAC{C}_{t}) }{ { \left( 1+WACC \right) }^{ t } }+ \frac {\frac { I{C}_{0}\ x\ (ROI{C}_{1}\ -\ WAC{C}_{1}) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Adjusted Present Value APV { Value }_{ APV }=\sum { \frac { FCF_{ t } }{ { \left( 1+{ k }_{ u } \right) }^{ t } } +\frac { \frac { { FCF }_{ 1 }}{ { k }_{ u }-g } }{ { \left( 1+{ k }_{ u } \right) }^{ t } } } +\sum { \frac { { TS }_{ t } }{ { \left( 1+{ k }_{ tax } \right) }^{ t } } +\frac { \frac { { TS }_{ 1 }}{ { k }_{ tax }-g } }{ { \left( 1+{ k }_{ tax } \right) }^{ t } } }
 
Forward Market Multiple FMM { Value }_{ DCF/FMM}=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { { EBIT }_{ 1 }\,{x}\,{FMM}}{ { \left( 1+WACC \right) }^{ t } } }{\,\,\,; \,\,FMM\,=\,\frac{{EV}_{t=0}}{{EBIT}_{t=0}}}
 

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