Centene Corporation

NYSE:CNC Stock Report

Market Cap: US$30.1b

Centene Valuation

Is CNC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CNC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNC ($59.58) is trading below our estimate of fair value ($268.36)

Significantly Below Fair Value: CNC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CNC?

Key metric: As CNC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CNC. This is calculated by dividing CNC's market cap by their current earnings.
What is CNC's PE Ratio?
PE Ratio9.8x
EarningsUS$3.07b
Market CapUS$30.15b

Price to Earnings Ratio vs Peers

How does CNC's PE Ratio compare to its peers?

The above table shows the PE ratio for CNC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.7x
HUM Humana
21.9x11.5%US$28.4b
MOH Molina Healthcare
14.7x14.7%US$16.8b
ELV Elevance Health
13.2x12.5%US$85.0b
HQY HealthEquity
85.1x39.8%US$8.2b
CNC Centene
9.8x3.4%US$30.1b

Price-To-Earnings vs Peers: CNC is good value based on its Price-To-Earnings Ratio (9.8x) compared to the peer average (33.7x).

Price to Earnings Ratio vs Industry

How does CNC's PE Ratio compare vs other companies in the US Healthcare Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC Tenet Healthcare
3.9x-39.2%US$11.95b
NEUE NeueHealth
1.1xn/aUS$32.60m
IDXG Interpace Biosciences
2.6xn/aUS$11.71m
FZMD Fuse Medical
2.2xn/aUS$8.67m
CNC 9.8xIndustry Avg. 21.9xNo. of Companies10PE01632486480+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CNC is good value based on its Price-To-Earnings Ratio (9.8x) compared to the US Healthcare industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is CNC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CNC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.8x
Fair PE Ratio28.4x

Price-To-Earnings vs Fair Ratio: CNC is good value based on its Price-To-Earnings Ratio (9.8x) compared to the estimated Fair Price-To-Earnings Ratio (28.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CNC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$59.58
US$79.39
+33.3%
12.3%US$93.00US$52.00n/a17
Dec ’25US$60.00
US$81.72
+36.2%
10.4%US$95.00US$66.00n/a17
Nov ’25US$63.52
US$83.42
+31.3%
9.7%US$95.00US$66.00n/a17
Oct ’25US$73.94
US$86.19
+16.6%
8.1%US$97.00US$72.00n/a17
Sep ’25US$78.83
US$85.95
+9.0%
8.5%US$98.00US$74.00n/a17
Aug ’25US$77.91
US$84.96
+9.0%
7.9%US$95.00US$74.00n/a17
Jul ’25US$65.34
US$87.52
+33.9%
9.3%US$110.00US$76.00n/a18
Jun ’25US$71.59
US$88.57
+23.7%
9.7%US$110.00US$76.00n/a18
May ’25US$72.25
US$88.02
+21.8%
10.1%US$110.00US$73.30n/a17
Apr ’25US$77.75
US$89.02
+14.5%
10.3%US$110.00US$73.30n/a17
Mar ’25US$77.98
US$88.46
+13.4%
10.0%US$110.00US$73.30n/a16
Feb ’25US$75.30
US$87.22
+15.8%
10.0%US$110.00US$73.30n/a17
Jan ’25US$74.21
US$85.96
+15.8%
9.7%US$110.00US$73.30n/a16
Dec ’24US$74.88
US$83.08
+11.0%
10.8%US$110.00US$72.00US$60.0016
Nov ’24US$69.32
US$83.12
+19.9%
10.8%US$110.00US$72.00US$63.5216
Oct ’24US$68.88
US$81.55
+18.4%
10.9%US$110.00US$71.00US$73.9418
Sep ’24US$61.27
US$82.21
+34.2%
10.3%US$110.00US$71.00US$78.8319
Aug ’24US$68.01
US$83.48
+22.7%
10.1%US$110.00US$71.00US$77.9119
Jul ’24US$67.45
US$83.86
+24.3%
10.0%US$110.00US$71.00US$65.3420
Jun ’24US$64.94
US$85.01
+30.9%
9.2%US$110.00US$71.00US$71.5919
May ’24US$68.61
US$85.60
+24.8%
10.0%US$110.00US$71.00US$72.2519
Apr ’24US$63.21
US$89.49
+41.6%
11.0%US$110.00US$71.00US$77.7519
Mar ’24US$68.51
US$92.11
+34.4%
9.2%US$110.00US$79.00US$77.9818
Feb ’24US$75.14
US$98.72
+31.4%
7.6%US$110.00US$85.00US$75.3018
Jan ’24US$82.01
US$100.00
+21.9%
8.1%US$115.00US$85.00US$74.2118
Dec ’23US$85.81
US$101.28
+18.0%
6.6%US$115.00US$87.00US$74.8818

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 06:07
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Centene Corporation is covered by 45 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Hua HaBaird
Ishan MajumdarBaptista Research