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MGLN Price/Volume Stats

Magellan Health, Inc. (MGLN) Company Bio

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

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 61st percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 33%. The most interesting components of our discounted cash flow analysis for Magellan Health Inc ended up being:

• The stock's equity weight, or the proportion of capital from equity relative to debt, is 70. Notably, its equity weight is greater than merely 24.22% of US equities in the Healthcare sector yielding a positive free cash flow.
• Magellan Health Inc's weighted average cost of capital (WACC) is 9%; for context, that number is higher than 68.27% of tickers in our DCF set.
• Magellan Health Inc's effective tax rate, as measured by taxes paid relative to net income, is at 21 -- greater than 85.64% of US stocks with positive free cash flow.

For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MGLN, try AMED, FONR, REGN, SIGA, and UNH.