Centene Corporation provides a portfolio of services to government-sponsored healthcare programs, focusing on under-insured and uninsured individuals. The company was founded in 1984 and is based in St. Louis, Missouri.
CNC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CNC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Centene Corp ranked in the 24th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CNC, they are:
The company's balance sheet shows it gets 68% of its capital from equity, and 32% of its capital from debt. Its equity weight surpasses that of merely 18.59% of free cash flow generating stocks in the Healthcare sector.
Centene Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 6.67% of tickers in our DCF set.
Centene Corp's effective tax rate, as measured by taxes paid relative to net income, is at 22 -- greater than 84.25% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CNC, try DHR, EDAP, ICUI, NRC, and WAT.
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Health Net Federal Services, LLC (HNFS), a wholly-owned subsidiary of Centene Corporation (NYSE: CNC), announced today that it launched the Buckley Prime Service Area (PSA) Pilot in the Denver, Colorado area surrounding Buckley Air Force Base (AFB) on January 1, 2021. HNFS is currently the West Region Managed Care Support Contractor for TRICARE, the military health system program for uniformed service members, retirees, and their families worldwide.
On CNBC's "Mad Money Lightning Round," Jim Cramer advised a viewer to buy Centene Corp (NYSE: CNC ) instead of Clover Health Investments Corp (NASDAQ: CLOV ). Cramer … Full story available on Benzinga.com
ST. LOUIS and TAMPA, Fla., Jan. 19, 2021 /PRNewswire/ -- WellCare, a wholly owned subsidiary of Centene Corporation, announced today it will pilot an at-home COVID-19 testing and flu prevention program that will enable eligible Medicare Advantage members to test for COVID-19 infection…