Anthem Inc. operates as a health benefits company in the United States. It operates through three segments: Commercial and Specialty Business, Government Business, and Other. The company was founded in 1944 and is based in Indianapolis, Indiana.
ANTM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ANTM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Anthem Inc ranked in the 62th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 52.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Anthem Inc ended up being:
As a business, ANTM is generating more cash flow than 92.61% of positive cash flow stocks in the Healthcare.
Anthem Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 15.35% of tickers in our DCF set.
ANTM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than just 15.35% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Anthem Inc? See ANIP, CAH, MCK, DGX, and HRC.
Anthem, Inc. (NYSE: ANTM) will release fourth quarter 2020 financial results on January 27, 2021, at 6:00 a.m. Eastern Standard Time ("EST"). Management will review these results and its outlook during a conference call at 8:30 a.m. EST that same morning. The conference call should be accessed at least 15 minutes prior to its start with the following numbers:
The telehealth sector seems poised to maintain its robust growth in the future owing to the convenience it provides, making it a good time to keep an eye on names like Teladoc Health (TDOC) and Anthem (ANTM)
Editor's note: Seeking Alpha is proud to welcome DividendRodeo as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Introduction Like many of you,...