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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Anthem Inc. To summarize, we found that Anthem Inc ranked in the 75th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. 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 94.52% of positive cash flow stocks in the Healthcare.
Anthem Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 14.39% 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 just 14.39% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
RDNT, CVS, MYL, ABBV, and INVA can be thought of as valuation peers to ANTM, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
As an investor who is constantly self-critical and on an endless pursuit of performance optimization, I'm continually evaluating some of the biggest risks on some of the best-performing stocks and industries, and wondering... what is Wall Street pricing (or not pricing) in? Lately, my latest obsession has been with maturing...
Andrew Sather on Seeking Alpha | September 25, 2020
Subsequent to PE Hub reporting that Anthem (ANTM) is believed to be in late-stage talks to acquire Connecticut-based CareCentrix, Stephens analyst Scott Fidel re-affirmed its Overweight rating (PT, $330).CareCentrix, backed by private equity firm Summit Partners, provides post-acute and home-based services, discharge management, and durable medical equipment.He further adds that the CareCentrix deal, if...
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SEATTLE , Sept. 2, 2020 /PRNewswire/ -- QuoteWizard® , a LendingTree company, and one of the nation's leading online insurance marketplaces released a report on how top health insurers report billions in profit during the pandemic. During the pandemic, we've seen millions contract COVID-19 and file for unemployment, and small businesses fight to stay open. With many in the U.S. struggling during the pandemic, it's health insurance companies that are thriving. Top health insurance companies UnitedHealth Group, Humana and Anthem reported billion-dollar second-quarter profits that doubled year over year. How is it that health insurance companies could be raking in massive profit during a pandemic that is seeing hospital capacity overwhelmed, people losing employer health insurance and unpa...