Molina Healthcare provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. The company was founded in 1980 and is based in Long Beach, California.
MOH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Molina Healthcare Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Molina Healthcare Inc ranked in the 15th 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. As for the metrics that stood out in our discounted cash flow analysis of Molina Healthcare Inc, consider:
The company's compound free cash flow growth rate over the past 5.48 years comes in at -0.15%; that's greater than merely 10.81% of US stocks we're applying DCF forecasting to.
MOH's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 26.25% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than merely 20.02% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ENDP, ZBH, AMPH, RHE, and RSCF can be thought of as valuation peers to MOH, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
Despite the global pandemic, Molina Healthcare (MOH) expanded its footprints in 2020 by executing meaningful and accretive acquisitions, retaining all of the existing Medicaid contracts and also won new state contract.Q4 performance continues to be strong and in line with previous expectations with EPS to be ~$3.00/share.The quarter impacted by recently enacted...