CAH · Intrinsic value
Is Cardinal Health, Inc. (CAH) overvalued or undervalued?
Cardinal Health, Inc. (CAH) trades at the delayed market price of $252.87 a share. That price already implies revenue growth of 15.9% a year for 5 years. TickerWorth's fair value is $219.34 a share (priced within our range of $170.56 – $282.06). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is CAH fairly valued?
- Fair value
- $219.34
- Market price
- $252.87
- Downside to fair value
- 13.3%
- Verdict
- Priced within our range of $170.56 – $282.06
Reverse DCF: Today's price implies revenue growth of 15.9% a year for 5 years; our model assumes 5.5% a year on average over the same horizon.
What is CAH's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Healthcare companies in US
Its strongest point: looks cheap on the numbers. Its weakest: profitability is weak.
- Value · 70 of 100
Cheaper than 70% of Healthcare companies in US
- Price vs worth · 39 of 100
- Quality · 20 of 100
More profitable than 20% of Healthcare companies in US
- Financial health · 34 of 100
Financially stronger than 34% of Healthcare companies in US
- Growth · 65 of 100
Growing faster than 65% of Healthcare companies in US
- Momentum · 92 of 100
Outperformed 92% of Healthcare companies in US over the past year
Confidence: High confidence · Scored
Get the Undervalued Company of the Week.
CAH DCF valuation, input by input
TickerWorth's fair value for Cardinal Health, Inc. (CAH) is $219.34 a share, against the delayed market price of $252.87 (priced within our range of $170.56 – $282.06). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values CAH at about $170.56 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Cardinal Health, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 7.3%, with a long-run terminal growth rate of 2.5%. About 77% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 15.9% annual revenue growth for CAH. Our base case instead compounds to about 5.5% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, CAH's modeled DCF value ranges from about $120.27 to $330.61 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Cardinal Health, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of CAH's intrinsic value. Figures update as new filings and prices come in.
Every input behind CAH's DCF
| Input | Value |
|---|---|
| Base-year revenueCardinal Health, Inc. FY2026 10-K (accession 0000721371-26-000038): us-gaap:Revenues, FY2026 full year. | $254,248,000,000 |
| Base EBIT marginCardinal Health, Inc. FY2026 10-K (accession 0000721371-26-000038): us-gaap:OperatingIncomeLoss 2,613,000,000 / revenue 254,248,000,000 = 1.03%, FY2026. | 1.0% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 7% → 6% → 6% → 5% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.50 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesCardinal Health, Inc. FY2026 10-K (accession 0000721371-26-000038): WeightedAverageNumberOfDilutedSharesOutstanding = 237,000,000 shares, FY2026. | 237M |
| Market priceBackup price feed · as of 2026-10-19 13:54 UTC | $252.87 |
Change CAH's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Cardinal Health, Inc. do?
What does it do?
Cardinal Health, Inc. operates as a healthcare services and products company in the United States and internationally. It operates in the Medical Distribution industry (Healthcare sector), headquartered in United States. The company employs roughly 58,788 people.
How does it make money?
The business turns $254.2B in annual revenue into profit. Out of every $100 of sales, about $1 is left as operating profit (operating margin of 1.3%), after a 4% gross margin on the products/services it sells. After all costs, taxes and interest, 0.7% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: may struggle to cover its short-term bills (0.9× current ratio), and is currently profitable.
Who at CAH filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| MUNDKUR CHRISTINE | Director | Grant / award | — | Form 4 for MUNDKUR CHRISTINE (opens sec.gov in a new tab) | |
| Killefer Nancy | Director | Grant / award | — | Form 4 for Killefer Nancy (opens sec.gov in a new tab) | |
| KENNY GREGORY B | Director | Grant / award | — | Form 4 for KENNY GREGORY B (opens sec.gov in a new tab) | |
| JOHRI AKHIL | Director | Grant / award | — | Form 4 for JOHRI AKHIL (opens sec.gov in a new tab) | |
| Hall Patricia Hemingway | Director | Grant / award | — | Form 4 for Hall Patricia Hemingway (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4).
Common questions
What is CAH's intrinsic value?
TickerWorth's blended fair value for Cardinal Health, Inc. (CAH) is $219.34 per share, versus a market price of $252.87 (priced within our range of $170.56 – $282.06).
Is CAH overvalued or undervalued?
Priced within our range of $170.56 – $282.06 at $252.87. We don't call CAH overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for CAH?
A WACC of 7.3% and a terminal growth rate of 2.5%.
Is Cardinal Health stock undervalued?
TickerWorth's fair value for Cardinal Health, Inc. (CAH) is $219.34 against a market price of $252.87. Our read: Priced within our range of $170.56 – $282.06. This is a model estimate, not investment advice.
Cardinal Health (CAH) DCF valuation and fair value
Our fair value for Cardinal Health, Inc. (CAH) is $219.34, built on a 7.3% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Cardinal Health stock?
Today's price implies revenue growth of 15.9% a year for 5 years; our model assumes 5.5% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $252.87. A model estimate, not investment advice.
Cardinal Health (CAH) insider trading
The most recent insider filing (SEC Form 4) for Cardinal Health, Inc. (CAH): MUNDKUR CHRISTINE, Director, grant / award on 2025-11-05. The latest filings are listed on this page. A disclosure, not a signal to trade.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.