Humana operates as a health and well-being company. The company operates through three segments: Retail, Group, and Healthcare Services. The company was founded in 1964 and is based in Louisville, Kentucky.
HUM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Humana Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Humana Inc ranked in the 69th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 183.17% on a DCF basis. The most interesting components of our discounted cash flow analysis for Humana Inc ended up being:
HUM'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 31.1% of tickers in our DCF set.
The weighted average cost of capital for the company is 7. This value is greater than merely 24.89% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PCRX, DVA, NVO, TVTY, and EGRX can be thought of as valuation peers to HUM, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
COMPANY CLOSE UPDATES Terrence Horan Shares of UnitedHealth Group Inc. UNH shed 0.47% to $305.23 Thursday, on what proved to be an all-around grim trading session for the stock market, with the S&P 500 Index SPX falling 0.
The CEO of (CNC) one of America’s five largest health insurers by market value, thinks that the drug companies developing Covid-19 vaccines need to keep their prices low. “My whole mentality is, when things are tough, that’s not the time to try and capitalize on it,” Centene (ticker: CNC) CEO Michael Neidorff told Barron’s on Tuesday. “I think the drug companies will have to show some restraint.”