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CAH Cardinal Health

healthcare · valued with glm-5.2 medium conviction · deep-dived 2026-08-21

SELL
Intrinsic value$49.39
Price (at call)$228.46
Margin of safety -78.4%
vs market (rating basis) -38.9%

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The story

Value drivers

Revenue growth (Y1)7.1%
Terminal growth3.5%
Forecast horizon10y
Target operating margin0.9%
Years to target margin5
Sales-to-capital5.00
Beta0.52
Failure probability0.0%
Cost of capital (WACC)6.7%
Terminal WACC8.6%

Valuation bridge

PV of explicit FCFF-7.50B
PV of terminal value23.78B
Equity value11.49B
÷ shares → per share$49.39

News

score · 8 articles

  • What Is Drawing Attention To Cardinal Health (CAH) Today?
  • Cardinal Health’s (CAH) Big Earnings Beat Hides a More Complicated Story
  • Cardinal Health's Integration of Higher-Margin Services Will Drive Outperformance, RBC Says
  • Moderna upgraded, Baidu downgraded: Wall Street's top analyst calls
  • Here Are Wednesday’s Top Wall Street Analyst Research Calls: Baidu, Ciena, CME Group, Dollar Tree, Dominion, Fabrinet, Honeywell Aerospace, Klarna, Pershing Square, and More
  • OPKO Health Secures $125 Million Financing Against Mazdutide Royalties
  • Cardinal Health (CAH) Q4 2026 Earnings Call Transcript
  • Baxter’s interim CFO leaves for Cardinal Health

Projected free cash flow to the firm

YrRevenueGrowthMarginNOPATReinvestFCFFPV
1 268.47B 7.1% 0.9% 1.88B 3.55B -1.67B -1.56B
2 286.39B 6.7% 0.9% 2.00B 3.58B -1.58B -1.39B
3 304.36B 6.3% 0.9% 2.13B 3.60B -1.47B -1.21B
4 322.26B 5.9% 0.9% 2.25B 3.58B -1.33B -1.02B
5 339.94B 5.5% 0.9% 2.38B 3.53B -1.16B -837.37M
6 357.23B 5.1% 0.9% 2.50B 3.46B -961.61M -651.40M
7 373.99B 4.7% 0.9% 2.61B 3.35B -736.92M -467.82M
8 390.04B 4.3% 0.9% 2.73B 3.21B -485.03M -288.56M
9 405.24B 3.9% 0.9% 2.83B 3.04B -207.11M -115.47M
10 419.43B 3.5% 0.9% 2.93B 2.84B 95.21M 49.75M

History

DatePriceIntrinsicMoSRating
2026-08-21$228.46 $49.39 -78.4% SELL
2026-07-01$237.56 $177.19 -25.4% BUY
2026-06-23$228.91 $66.52 -70.9% SELL