Centene Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($78.35) is trading below our estimate of fair value ($231.37)

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?

Other financial metrics that can be useful for relative valuation.

CNC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA7.2x
PEG Ratio1.7x

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 Average45.7x
HUM Humana
16.9x11.9%US$42.1b
MOH Molina Healthcare
22.5x14.7%US$24.5b
ELV Elevance Health
20.2x12.3%US$121.0b
HQY HealthEquity
123.3x42.4%US$6.9b
CNC Centene
15.5x9.0%US$41.9b

Price-To-Earnings vs Peers: CNC is good value based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (45.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: CNC is good value based on its Price-To-Earnings Ratio (15.5x) compared to the US Healthcare industry average (24.7x).


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 Ratio15.5x
Fair PE Ratio33.5x

Price-To-Earnings vs Fair Ratio: CNC is good value based on its Price-To-Earnings Ratio (15.5x) compared to the estimated Fair Price-To-Earnings Ratio (33.5x).


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$78.35
US$89.02
+13.6%
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$72.00n/a16
Nov ’24US$69.32
US$83.12
+19.9%
10.8%US$110.00US$72.00n/a16
Oct ’24US$68.88
US$81.55
+18.4%
10.9%US$110.00US$71.00n/a18
Sep ’24US$61.27
US$82.21
+34.2%
10.3%US$110.00US$71.00n/a19
Aug ’24US$68.01
US$83.48
+22.7%
10.1%US$110.00US$71.00n/a19
Jul ’24US$67.45
US$83.86
+24.3%
10.0%US$110.00US$71.00n/a20
Jun ’24US$64.94
US$85.01
+30.9%
9.2%US$110.00US$71.00n/a19
May ’24US$68.61
US$85.60
+24.8%
10.0%US$110.00US$71.00n/a19
Apr ’24US$63.21
US$89.49
+41.6%
11.0%US$110.00US$71.00n/a19
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
Nov ’23US$85.93
US$101.28
+17.9%
6.6%US$115.00US$87.00US$69.3218
Oct ’23US$77.81
US$103.37
+32.8%
6.9%US$116.00US$88.00US$68.8819
Sep ’23US$91.24
US$104.11
+14.1%
6.9%US$116.00US$88.00US$61.2719
Aug ’23US$92.25
US$103.35
+12.0%
6.6%US$116.00US$88.00US$68.0120
Jul ’23US$86.21
US$95.95
+11.3%
7.4%US$108.00US$82.00US$67.4519
Jun ’23US$81.21
US$95.89
+18.1%
8.5%US$112.00US$82.00US$64.9418
May ’23US$80.55
US$95.50
+18.6%
7.9%US$112.00US$82.00US$68.6118
Apr ’23US$85.51
US$95.63
+11.8%
7.6%US$109.00US$82.00US$63.2119
Mar ’23US$83.15
US$95.63
+15.0%
7.6%US$109.00US$82.00US$68.5119

Analyst Forecast: Target price is less than 20% higher than the current share price.


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