Anthem, Inc. (NYSE:ANTM) Shares Could Be 21% Below Their Intrinsic Value Estimate
Today we will run through one way of estimating the intrinsic value of Anthem, Inc. ( NYSE:ANTM ) by taking the...
Has the U.S. Healthcare Services Industry valuation changed over the past few years?
|Sun, 28 Nov 2021||US$1.1t||US$1.4t||US$50.1b||21.5x|
|Tue, 26 Oct 2021||US$1.1t||US$1.4t||US$48.9b||20.2x|
|Thu, 23 Sep 2021||US$1.1t||US$1.4t||US$46.2b||22x|
|Sat, 21 Aug 2021||US$1.1t||US$1.4t||US$46.5b||20.9x|
|Sat, 05 Jun 2021||US$1.1t||US$1.6t||US$48.8b||20.6x|
|Tue, 09 Mar 2021||US$934.0b||US$1.6t||US$45.3b||20.5x|
|Mon, 30 Nov 2020||US$913.6b||US$1.5t||US$49.7b||19.4x|
|Thu, 03 Sep 2020||US$854.4b||US$1.7t||US$44.4b||19.9x|
|Sun, 07 Jun 2020||US$840.0b||US$1.7t||US$36.3b||22.4x|
|Sat, 29 Feb 2020||US$742.4b||US$1.6t||US$34.6b||20.7x|
|Tue, 03 Dec 2019||US$805.0b||US$1.6t||US$29.9b||21.9x|
|Fri, 06 Sep 2019||US$688.6b||US$1.5t||US$36.8b||17.9x|
|Mon, 10 Jun 2019||US$677.7b||US$1.4t||US$28.3b||18.2x|
|Sun, 03 Mar 2019||US$719.9b||US$1.4t||US$25.7b||22.2x|
|Wed, 05 Dec 2018||US$791.4b||US$1.3t||US$33.0b||19.7x|
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 20.3x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for companies in the Healthcare industry have grown 15% per year over the last three years, and revenues for these companies have grown 2.7% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Which industries have driven the changes within the U.S. Healthcare Services industry?
Industry PE: Investors are most optimistic about the Managed Healthcare industry which is trading above its 3-year average PE ratio of 19.1x. This is likely because analysts are expecting annual earnings growth of 13%, which is higher than its past year's earnings growth of 1.8% per year. Meanwhile, investors are most pessimistic about the Healthcare Facilities industry, which is trading below its 3-year average of 19.8x.
Forecasted Growth: Analysts are most optimistic on the Managed Healthcare industry, expecting annual earnings growth of 13% over the next 5 years. This is better than it's past earnings growth rate of 1.8% per year. Meanwhile, the Healthcare Services industry is expected to see its earnings grow by 8.8% per year over the next few years.
Which companies have driven the market over the last 7 days?
Apollo Medical Holdings
Owens & Minor
Oak Street Health
CVS will be closing 900 of its physical stores over the next three years while revamping some of its stores to better cater to the local community's needs. The company is also increasing its digital presence through virtual healthcare, online retail pharmacy, amongst others. CVS increased its FY2021 revenue guidance to reflect its robust revenue growth cadence. We discuss whether investors should add CVS stock now.