Centene Stock Valuation

CNC -  USA Stock  

USD 82.38  0.61  0.75%

Do you wonder what the value of Centene Corp is? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Centene Corp, is its stock price multiplied by the total number of shares outstanding, calculating Centene Corp's enterprise value requires a different approach. It uses Centene Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current year Free Cash Flow is expected to grow to about 3.6 B. The current year Enterprise Value is expected to grow to about 57.7 B.
Centene Corp shows a prevailing Real Value of $87.63 per share. The current price of the firm is $82.38. At this time, the firm appears to be undervalued. Our model approximates the value of Centene Corp from analyzing the firm fundamentals such as Profit Margin of 1.14 %, current valuation of 56.89 B, and Return On Equity of 5.04 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor taking in undervalued instruments and trading overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
  
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Centene Corp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Centene Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 82.38
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Please note that Centene Corp's price fluctuation is very steady at this time. Calculation of the real value of Centene Corp is based on 3 months time horizon. Increasing Centene Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Centene Corp is useful when determining the fair value of the Centene stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Centene Corp. Since Centene Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Centene Stock. However, Centene Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
87.63
Real Value
89.65
Upside
Estimating the potential upside or downside of Centene Corp helps investors to forecast how Centene stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Centene Corp more accurately as focusing exclusively on Centene Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (9)
LowProjected EPSHigh
5.105.125.24
Details
Hype
Prediction
LowEstimated ValueHigh
79.7581.7783.79
Details
14 Analysts
Consensus
LowTarget PriceHigh
75.0092.36109.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Centene Corp's intrinsic value based on its ongoing forecasts of Centene Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Centene Corp's closest peers. When choosing an evaluation method for Centene Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Centene Corp Investments

16.81 Billion

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Centene Valuation Drivers Correlation

Many accounts on the financial statements of Centene Corp are highly interrelated and sometimes correlated. Consequently, when conducting Centene's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Centene
Click cells to compare fundamentals

Centene Valuation Trend

Knowing Centene Corp's actual value is paramount for traders to make sound investment determinations. Centene Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Centene Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Centene Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Centene Market Cap

Centene Corp is rated second in market capitalization category among related companies. Market capitalization of Healthcare Plans industry is currently estimated at about 176.71 Billion. Centene Corp totals roughly 48.03 Billion in market capitalization claiming about 27% of equities under Healthcare Plans industry.
Capitalization  Workforce  Valuation  Revenue  Total debt

Centene Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Centene Corp's current stock value. Our valuation model uses many indicators to compare Centene Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Centene Corp competition to find correlations between indicators driving Centene Corp's intrinsic value. More Info.
Centene Corp is rated second in beta category among related companies. It is number one stock in price to earning category among related companies reporting about  126.75  of Price to Earning per Beta. Centene Corp Price to Earnings Ratio are projected to decrease significantly based on the last few years of reporting. The past year's Price to Earnings Ratio were at 35.67. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 4.3 B, whereas Earnings before Tax are forecasted to decline to about 1.6 B.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Centene Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Centene Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Centene Corp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Centene Corp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Centene Corp and how it compares across the competition.

About Centene Corp Valuation

The equity valuation mechanism determines the current worth of Centene Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Centene Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Centene Corp based exclusively on its fundamental and basic technical indicators. By analyzing Centene Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Centene Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Centene Corp. We calculate exposure to Centene Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Centene Corp's related companies.
Last ReportedProjected for 2022
Gross Profit14.2 B15.3 B
Profit Margin 0.011  0.0125 
Centene Corporation operates as a multi-national healthcare enterprise that provides programs and services to under-insured and uninsured individuals in the United States. Centene Corporation was founded in 1984 and is headquartered in St. Centene Corp operates under Healthcare Plans classification in the United States and is traded on New York Stock Exchange. It employs 72500 people.

Centene Corp Quarterly Enterprise Value

54.79 Billion

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Centene Corp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Centene Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio1.04
Revenue Growth15.20%
Enterprise Value To Ebitda11.03
Enterprise Value To Revenue0.48

Centene Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of Centene Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Centene we look at many different elements of the entity such as Centene's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Centene Corp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Centene Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Centene Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Centene Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Centene Corp's worth.
Continue to Trending Equities. Note that the Centene Corp information on this page should be used as a complementary analysis to other Centene Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Complementary Tools for Centene Stock analysis

When running Centene Corp price analysis, check to measure Centene Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Centene Corp is operating at the current time. Most of Centene Corp's value examination focuses on studying past and present price action to predict the probability of Centene Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Centene Corp's price. Additionally, you may evaluate how the addition of Centene Corp to your portfolios can decrease your overall portfolio volatility.
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Is Centene Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Centene Corp. If investors know Centene will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Centene Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Centene Corp is measured differently than its book value, which is the value of Centene that is recorded on the company's balance sheet. Investors also form their own opinion of Centene Corp's value that differs from its market value or its book value, called intrinsic value, which is Centene Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Centene Corp's market value can be influenced by many factors that don't directly affect Centene Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Centene Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Centene Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Centene Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.