---
title: Cardinal Health (CAH) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/cah
ticker: CAH
as_of: 2026-10-17
sector: Healthcare
industry: Medical - Distribution
---
# Cardinal Health (CAH)

Cardinal Health (CAH) closed at $254.06 on Oct 16, 2026, overvalued by 9% vs its model value of $232.48 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $254.06 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $232.48 |
| Price vs model | overvalued by 9% vs model |
| Range of that model | $137.90 – $553.96 |
| Market value | $58.8B |
| P/E (fiscal 2026) | 35.1 |
| Net margin (fiscal 2026) | 0.7% |
| Free cash flow (fiscal 2026) | $4.5B |
| Dividend yield (trailing twelve months) | 0.81% |
| Beta | 0.50 |
| Cost of capital (WACC) | 7.34% |
| Business classification | Mature & Stable (Low/slowing growth (~6% recent), Thin margins (0.7% net margin), Highly cyclical earnings, High leverage (D/E 5.0x), Strong FCF yield (7.7%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week highs | #5 | 0.0% | https://sweetvaluelab.com/lists/near-52-week-highs |
| Dividend growth streaks | #24 | 39+ years | https://sweetvaluelab.com/lists/dividend-growth-streaks |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.81% |
| Dividends per share, last 12 months | $2.05 |
| Dividends / free cash flow (fiscal 2026) | 10.9% |
| Raised | 39+ years in a row |
| Growth over 5 years | 1.0% a year |
| Latest payment | $0.5158, ex-date Oct 1, 2026, paid Oct 15, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 30, 2021 | $1.95 |
| To Sep 30, 2022 | $1.97 |
| To Oct 2, 2023 | $1.99 |
| To Oct 1, 2024 | $2.01 |
| To Oct 1, 2025 | $2.03 |
| Trailing twelve months (to Oct 1, 2026) | $2.05 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $232.48 | $137.90 | $553.96 |
| DCF · Perpetuity growth · 10y | cross check | $249.45 | $152.92 | $581.33 |
| DCF · EBITDA exit · 5y | cross check | $222.32 | $153.94 | $303.00 |
| DCF · EBITDA exit · 10y | cross check | $240.39 | $165.57 | $340.46 |
| P/E · peers | cross check | $213.80 | $129.43 | $236.44 |
| P/E · own history | cross check | $324.76 | $274.99 | $479.03 |
| PEG | sanity check | $300.05 | $300.05 | $300.05 |
| EV/EBITDA · peers | cross check | $231.38 | $125.26 | $269.23 |
| EV/Revenue · peers | cross check | $263.97 | $180.27 | $698.67 |
| Earnings power value | cross check | $49.24 | $38.00 | $66.26 |
| Dividend discount | cross check | $51.64 | $33.41 | $96.63 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 31 open-market sales ($59.6M); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Aug 19, 2026 | Scherer Mary C. | Chief Accounting Officer | Open-market sell | 100 | $23,740 |
| Aug 19, 2026 | Scherer Mary C. | Chief Accounting Officer | Open-market sell | 2,202 | $522,732.8 |
| Aug 18, 2026 | Hollar Jason M. | Chief Executive Officer | Open-market sell | 21,407 | $5.0M |
| Aug 18, 2026 | Hollar Jason M. | Chief Executive Officer | Open-market sell | 29,915 | $7.0M |
| Aug 18, 2026 | Hollar Jason M. | Chief Executive Officer | Open-market sell | 16,208 | $3.8M |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 1, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/721371/000072137126000041/cah-20261001.htm |
| Sep 21, 2026 | ARS | Annual report to shareholders | https://www.sec.gov/Archives/edgar/data/721371/000130817926000404/cah015677-ars.pdf |
| Sep 21, 2026 | DEFA14A | Additional proxy materials | https://www.sec.gov/Archives/edgar/data/721371/000130817926000403/a2026cardinalhealthna.htm |
| Sep 21, 2026 | DEF 14A | Proxy statement | https://www.sec.gov/Archives/edgar/data/721371/000130817926000402/cah-20260921.htm |
| Aug 11, 2026 | 10-K | Annual report | https://www.sec.gov/Archives/edgar/data/721371/000072137126000038/cah-20260630.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bridgewater | 2026-06-30 | 132,077 | $31.4M |
| Mason Hawkins | 2026-06-30 | 7,337 | $1.7M |
| First Eagle | 2026-06-30 | 5,900 | $1.4M |
| Mairs & Power | 2026-06-30 | 2,121 | $503,865 |

4 tracked managers in all.

## About

Cardinal Health, Inc. operates as a global, integrated provider of healthcare services and products, with its reach spanning the United States, Canada, Europe, Asia, and other international markets. The company delivers bespoke support to a diverse clientele, including hospitals, healthcare networks, pharmacies, outpatient surgical centers, clinical labs, physician practices, and individuals receiving care at home. It is structured into two core divisions: Pharmaceutical and Medical. The Pharmaceutical division oversees the distribution of a wide array of products, encompassing branded, generic, and specialty pharmaceuticals, along with over-the-counter health and consumer goods. This segment additionally offers specialized services to pharmaceutical manufacturers and healthcare providers, particularly for specialty pharmaceutical products. Its operations extend to managing nuclear pharm…

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Source: https://sweetvaluelab.com/stocks/cah (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.