Humana Inc.

NYSE:HUM Stock Report

Market Cap: US$33.4b

Humana Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 HUM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HUM ($293.97) is trading below our estimate of fair value ($869.48)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HUM. This is calculated by dividing HUM's market cap by their current earnings.
What is HUM's PE Ratio?
PE Ratio26x
EarningsUS$1.36b
Market CapUS$33.45b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HUM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31x
CNC Centene
9.7x4.9%US$29.2b
MOH Molina Healthcare
14.7x14.8%US$16.2b
ELV Elevance Health
14.4x12.7%US$91.4b
HQY HealthEquity
85.1x32.1%US$9.0b
HUM Humana
26x11.6%US$33.4b

Price-To-Earnings vs Peers: HUM is good value based on its Price-To-Earnings Ratio (26x) compared to the peer average (31x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC Tenet Healthcare
4.6x-39.2%US$14.58b
NEUE NeueHealth
1.5xn/aUS$40.77m
AMS American Shared Hospital Services
4.9xn/aUS$19.08m
IDXG Interpace Biosciences
2.4xn/aUS$11.77m
HUM 26.0xIndustry Avg. 25.8xNo. of Companies11PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HUM is expensive based on its Price-To-Earnings Ratio (26x) compared to the US Healthcare industry average (25.8x).

Price to Earnings Ratio vs Fair Ratio

What is HUM'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.

HUM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26x
Fair PE Ratio36x

Price-To-Earnings vs Fair Ratio: HUM is good value based on its Price-To-Earnings Ratio (26x) compared to the estimated Fair Price-To-Earnings Ratio (36x).

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 HUM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$293.97
US$288.15
-2.0%
14.0%US$425.00US$248.00n/a20
Nov ’25US$260.71
US$292.25
+12.1%
16.5%US$425.00US$247.00n/a21
Oct ’25US$279.45
US$391.10
+40.0%
6.7%US$473.00US$342.00n/a22
Sep ’25US$354.47
US$393.05
+10.9%
6.1%US$473.00US$349.00n/a22
Aug ’25US$358.98
US$388.69
+8.3%
7.3%US$473.00US$332.00n/a22
Jul ’25US$373.49
US$374.75
+0.3%
7.9%US$473.00US$326.00n/a23
Jun ’25US$358.12
US$369.48
+3.2%
8.7%US$473.00US$326.00n/a21
May ’25US$314.21
US$375.40
+19.5%
13.7%US$550.00US$326.00n/a20
Apr ’25US$351.45
US$419.65
+19.4%
10.7%US$550.00US$356.00n/a20
Mar ’25US$352.03
US$423.00
+20.2%
10.3%US$550.00US$359.00n/a19
Feb ’25US$375.82
US$435.89
+16.0%
11.7%US$550.00US$359.00n/a19
Jan ’25US$457.81
US$580.89
+26.9%
5.1%US$640.00US$525.00n/a19
Dec ’24US$495.21
US$580.89
+17.3%
5.1%US$640.00US$525.00n/a19
Nov ’24US$489.36
US$581.89
+18.9%
5.8%US$640.00US$523.00US$260.7119
Oct ’24US$486.52
US$581.52
+19.5%
6.9%US$640.00US$468.00US$279.4521
Sep ’24US$460.61
US$581.23
+26.2%
6.7%US$640.00US$468.00US$354.4722
Aug ’24US$458.11
US$576.09
+25.8%
7.0%US$640.00US$468.00US$358.9822
Jul ’24US$447.13
US$591.86
+32.4%
5.6%US$640.00US$524.00US$373.4922
Jun ’24US$515.15
US$601.95
+16.9%
4.1%US$640.00US$550.00US$358.1222
May ’24US$535.13
US$597.91
+11.7%
4.9%US$640.00US$542.00US$314.2122
Apr ’24US$485.46
US$596.32
+22.8%
5.2%US$640.00US$542.00US$351.4522
Mar ’24US$496.15
US$597.91
+20.5%
4.9%US$640.00US$550.00US$352.0322
Feb ’24US$513.28
US$613.05
+19.4%
4.7%US$650.00US$550.00US$375.8222
Jan ’24US$512.19
US$612.27
+19.5%
6.0%US$652.00US$510.00US$457.8122
Dec ’23US$548.37
US$610.19
+11.3%
6.0%US$650.00US$510.00US$495.2121
Nov ’23US$554.49
US$558.10
+0.7%
4.3%US$620.00US$510.00US$489.3621

Analyst Forecast: Target price is lower than the current share price.

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