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 56th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for ANTM, they are:
The company has produced more trailing twelve month cash flow than 92.06% of its sector Healthcare.
Anthem Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 17.15% of tickers in our DCF set.
ANTM's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 17.15% 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 DRRX, IART, UNH, RSCF, and NHC.
Investment Thesis Anthem 5-year share price performance. Source: TradingView. Health insurers have provided strong gains for investors over the past 12 months, despite the market sell-off in March owing to the coronavirus pandemic, which hit the sector harder than most. Health insurers Humana, Cigna, UnitedHealth, Centene and Anthem vs S&P...