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:
We started the process of determining a valid price forecast for Centene Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Centene Corp ranked in the 21th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 56.33%. As for the metrics that stood out in our discounted cash flow analysis of Centene Corp, consider:
The company's balance sheet shows it gets 63% of its capital from equity, and 37% of its capital from debt. Notably, its equity weight is greater than only 23.64% of US equities in the Healthcare sector yielding a positive free cash flow.
Centene Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 15.05% of tickers in our DCF set.
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 CAH, NRC, MTD, HAE, and HOLX.