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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Humana Inc. To summarize, we found that Humana Inc ranked in the 72th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 264.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for HUM, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 19.81 -- which is good for besting 85.78% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
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 32.07% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UHS, SKVI, CRHM, NVO, and ANTM 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.
Humana (HUM) announces details of its 2021 Medicare product offerings, including Medicare Advantage and Prescription Drug Plans.Beneficiaries will also have new choices through the launch of 69 new MAPD plans across hundreds of additional counties. For 2021, Humana’s MA, including Honor plans, and MAPD plans are all recommended by USAA.Humana Honor,...