Cardinal Stock Valuation

CAH
 Stock
  

USD 52.64  0.39  0.75%   

Do you want to know what the current value of Cardinal Health is today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Cardinal Health, is its stock price multiplied by the total number of shares outstanding, calculating Cardinal Health's enterprise value requires a different approach. It uses Cardinal Health's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current Enterprise Value is estimated to increase to about 25 B, while Free Cash Flow is projected to decrease to roughly 2.3 B.
Cardinal Health shows a prevailing Real Value of $55.96 per share. The current price of the firm is $52.64. At this time, the firm appears to be undervalued. Our model approximates the value of Cardinal Health from analyzing the firm fundamentals such as Return On Equity of 37.35 %, profit margin of 0.32 %, and Current Valuation of 18.57 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor locking in undervalued instruments and disposing overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Cardinal Health Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Cardinal Health's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Cardinal Most Recent Valuation Data

Price Book
16.07
EPS Estimate Next Quarter
1.21
Price Sales
0.0805
Forward Annual Dividend Yield
0.0379
EBITDA
2.4 B
Dividend Share
1.96
Ex Dividend Date
2022-06-30
Undervalued
Today 52.64
Please note that Cardinal Health's price fluctuation is very steady at this time. Calculation of the real value of Cardinal Health is based on 3 months time horizon. Increasing Cardinal Health's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Cardinal Health is useful when determining the fair value of the Cardinal stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Cardinal Health. Since Cardinal Health is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Cardinal Stock. However, Cardinal Health's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
55.96
Real Value
57.65
Upside
Estimating the potential upside or downside of Cardinal Health helps investors to forecast how Cardinal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Cardinal Health more accurately as focusing exclusively on Cardinal Health's fundamentals will not take into account other important factors:
Earnings
Estimates (6)
LowProjected EPSHigh
5.225.555.75
Details
Hype
Prediction
LowEstimated ValueHigh
50.2951.9853.67
Details
8 Analysts
Consensus
LowTarget PriceHigh
48.0057.5064.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Cardinal Health's intrinsic value based on its ongoing forecasts of Cardinal Health's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Cardinal Health's closest peers. When choosing an evaluation method for Cardinal Health, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Cardinal Valuation Drivers Correlation

Many accounts on the financial statements of Cardinal Health are highly interrelated and sometimes correlated. Consequently, when conducting Cardinal's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Cardinal
Click cells to compare fundamentals

Cardinal Valuation Trend

Knowing Cardinal Health's actual value is paramount for traders to make sound investment determinations. Cardinal Health's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Cardinal Health's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Cardinal Health's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Cardinal Market Cap

Cardinal Health is number one stock in market capitalization category among related companies. Market capitalization of Medical Distribution industry is currently estimated at about 1.2 Trillion. Cardinal Health claims roughly 14.96 Billion in market capitalization contributing just under 2% to all equities under Medical Distribution industry.
Capitalization  Workforce  Valuation  Total debt  Revenue

Cardinal Health Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Cardinal Health's current stock value. Our valuation model uses many indicators to compare Cardinal Health value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cardinal Health competition to find correlations between indicators driving Cardinal Health's intrinsic value. More Info.
Cardinal Health is number one stock in price to book category among related companies. It is number one stock in price to earning category among related companies reporting about  1.27  of Price to Earning per Price to Book. Cardinal Health Earnings Before Interest Taxes and Depreciation Amortization EBITDA are most likely to decrease significantly in the upcoming years. The last year's value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA was reported at 1.16 Billion. The current Earnings before Tax is estimated to increase to about 297.4 M, while Price to Earnings Ratio are projected to decrease to 22.82.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Cardinal Health by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Cardinal Health's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Cardinal Health's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Cardinal Health's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Cardinal Health and how it compares across the competition.

About Cardinal Health Valuation

The equity valuation mechanism determines the current worth of Cardinal Health on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Cardinal Health. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cardinal Health based exclusively on its fundamental and basic technical indicators. By analyzing Cardinal Health's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cardinal Health's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cardinal Health. We calculate exposure to Cardinal Health's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cardinal Health's related companies.
Last ReportedProjected for 2022
Gross Profit7.8 B7.6 B
Profit Margin 0.0036  0.004042 
Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. Cardinal Health, Inc. was founded in 1979 and is headquartered in Dublin, Ohio. Cardinal Health operates under Medical Distribution classification in the United States and is traded on New York Stock Exchange. It employs 44000 people.

Cardinal Health Quarterly Enterprise Value

18.19 Billion

Cardinal Health's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Cardinal Health's value is low or high relative to the company's performance and growth projections. Determining the market value of Cardinal Health can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Cardinal Health represents a small ownership stake in the entity. As a stockholder of Cardinal, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Cardinal Health Dividends Analysis For Valuation

Please note that Cardinal Health has scaled down on payment of dividends at this time. Cardinal Health Earnings Before Interest Taxes and Depreciation Amortization EBITDA are most likely to decrease significantly in the upcoming years. The last year's value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA was reported at 1.16 Billion. The current Earnings before Tax is estimated to increase to about 297.4 M, while Earnings per Basic Share are projected to decrease to 1.59.
There are various types of dividends Cardinal Health can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Cardinal shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Cardinal Health directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Cardinal pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Cardinal Health by the value of the dividends paid out.

Cardinal Health Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Cardinal Health does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.45
Earnings Quarterly Growth-92.20%
Revenue Growth9.40%
Enterprise Value To Ebitda7.24
Earnings Growth-92.00%
Enterprise Value To Revenue0.11

Cardinal Health Current Valuation Indicators

Valuation refers to the process of determining the present value of Cardinal Health and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Cardinal we look at many different elements of the entity such as Cardinal's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Cardinal Health's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Cardinal Health's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Cardinal Health, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Cardinal Health's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Cardinal Health's worth.
Continue to Trending Equities. Note that the Cardinal Health information on this page should be used as a complementary analysis to other Cardinal Health's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running Cardinal Health price analysis, check to measure Cardinal Health's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cardinal Health is operating at the current time. Most of Cardinal Health's value examination focuses on studying past and present price action to predict the probability of Cardinal Health's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Cardinal Health's price. Additionally, you may evaluate how the addition of Cardinal Health to your portfolios can decrease your overall portfolio volatility.
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Is Cardinal Health's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Cardinal Health. If investors know Cardinal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Cardinal Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.92
Market Capitalization
14.2 B
Quarterly Revenue Growth YOY
0.14
Return On Assets
0.0253
Return On Equity
-1.73
The market value of Cardinal Health is measured differently than its book value, which is the value of Cardinal that is recorded on the company's balance sheet. Investors also form their own opinion of Cardinal Health's value that differs from its market value or its book value, called intrinsic value, which is Cardinal Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Cardinal Health's market value can be influenced by many factors that don't directly affect Cardinal Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Cardinal Health's value and its price as these two are different measures arrived at by different means. Investors typically determine Cardinal Health value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cardinal Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.