Magellan Health provides services to health plans, managed care organizations (MCOs), employers, labor unions, military and governmental agencies, third party administrators, consultants and brokers. Its business is divided into five segments, which include managed healthcare, specialty solutions and pharmacy management. The company was founded in 1969 and is based in Scottsdale, Arizona.
MGLN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Magellan Health Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Magellan Health Inc ranked in the 48th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Magellan Health Inc, consider:
Magellan Health Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 14.55% of tickers in our DCF set.
Magellan Health Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Healthcare), Magellan Health Inc has a reliance on debt greater than 66.07% of them.
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 MGLN, try LH, INBP, USPH, MEDP, and AMED.
Summary List Placement Managed healthcare company Magellan Health is making digital therapeutics (DTx) bellwether Livongo's portfolio of behavioral health tools available to its members—and the duo plans to jointly develop and roll out digital mental health solutions in the future. Livongo for Behavioral Health consists of digital tools for managing and treating 15 common mental health conditions, including anxiety, depression, and insomnia—and these will now be embedded into Magellan's behavioral health suite , which its partnered health plans and employers can deploy for their members. Legacy healthcare firms have been relying more heavily on digital mental health services in recent months. The coronavirus pandemic is shining a spotlight on behavioral healthcare that can be delivered ...