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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Magellan Health Inc. To summarize, we found that Magellan Health Inc ranked in the 14th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Magellan Health Inc ended up being:
The company's balance sheet shows it gets 62% of its capital from equity, and 38% of its capital from debt. Its equity weight surpasses that of merely 21.45% of free cash flow generating stocks in the Healthcare sector.
The company's compound free cash flow growth rate over the past 5.84 years comes in at -0.16%; that's greater than only 12.18% of US stocks we're applying DCF forecasting to.
Magellan Health Inc's effective tax rate, as measured by taxes paid relative to net income, is at 18 -- greater than 70.62% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Magellan Health Inc? See HAE, IDXX, RMD, GMED, and QGEN.