What is Cardinal Health, Inc. (CAH) DCF Fair Value and Intrinsic Value in 2026?

Cardinal Health, Inc. (CAH) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Cardinal Health, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Cardinal Health, Inc. operates in the Healthcare sector (Medical Distribution) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Cardinal Health, Inc.'s financial health rating and Piotroski F-Score?

Cardinal Health, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Cardinal Health, Inc. (CAH) for quarterly SEC filing thesis breaks?

LocalAlpha audits Cardinal Health, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksCAH

CAH

Cardinal Health, Inc.Healthcare / Medical DistributionINTACT

Cardinal Health, Inc. operates as a healthcare services and products company in the United States and internationally. It operates in two segments: Pharmaceutical and Specialty Solutions, and Global Medical Products and Distribution. The company offers customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. It distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counter healthcare and consumer products. The company also provides services to pharmaceutical manufacturers and healthcare providers for specialty pharmaceutical products; pharmacy management services to hospitals; operates pharmacies, including pharmacies in community health centers; and repackages generic pharmaceuticals and over-the-counter healthcare products. In addition, it manufactures, sources, and distributes Cardinal Health branded medical, surgical, and laboratory products and devices that include exam and surgical gloves; needles, syringe, and sharps disposals; compression, incontinence, nutritional delivery, and wound care products; single-use surgical drapes, gowns, and apparel products; fluid suction and collection systems; urology products; operating room supply products; and electrode product lines. Further, the company distributes a range of national brand products, including medical, surgical, and laboratory products; provides supply chain services and solutions to hospitals, ambulatory surgery centers, clinical laboratories, and other healthcare providers; and assembles and sells sterile and non-sterile procedure kits. Additionally, it manufactures, prepares, and delivers radiopharmaceuticals; and optimizes direct shipments through integrated technology solutions. The company was incorporated in 1979 and is headquartered in Dublin, Ohio.

Share Price

$233.39

52W: $145.87 - $258.3

DCF Fair Value

$366.20

+36.3% MoS

Thesis Hub

P/E (TTM)

32.3x

ROIC

Operating Margin

1.3%

FCF Yield

8.8%

Debt / Equity

0.65x

Piotroski Score

6/9

Altman Z-Score

9.73

Market Cap

$54.3B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$366.20

MOS Buy Target (-25%)

$274.65

Valuation Overlays: DCF Fair Value ($366.20) 25% MOS Buy Target ($274.65) Revised Graham ($109.20)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$233.39

DCF Fair Value

$365.16

+36.1% MoS

Starting Free Cash Flow ($M)$4,753M

$100M$4,753M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$5,100M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$39.1B

PV of Terminal Value

$51.1B

Implied Enterprise Value

$90.2B

Implied Equity Value

$85.1B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$5,005	$5,270	$5,549	$5,844	$6,153	$6,430	$6,720	$7,022	$7,338	$7,668
Present Value (PV)	$4,592	$4,436	$4,285	$4,140	$3,999	$3,834	$3,676	$3,524	$3,379	$3,239

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number

N/A

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

Not calculable here: the formula takes a square root of EPS × book value, so it breaks down when trailing earnings (or book value) are negative. A company losing money has no defensive-investor price under Graham's classic test — lean on the DCF and solvency scores instead.

EPS: $7.22BVPS: $-12.37

Revised Graham Formula-113.7% Premium

$109.20

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings8.3% Yield

$19.38 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $4.5BYield: 8.3%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-1.8% CAGR (Next 10 Yrs)

At the current price of $233.39, the market is assuming the business will compound Free Cash Flow at -1.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil CAH with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Cardinal Health, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 1.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Cardinal Health, Inc. (CAH) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Cardinal Health, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Cardinal Health, Inc. has an estimated DCF intrinsic fair value of $366.20 per share compared to its current market price of $233.39. This represents an estimated 36.3% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $N/A.