Based on the provided data and current market context, here's a comprehensive analysis of whether CNC is overvalued:
Valuation Analysis
CNC's trailing P/E ratio has declined significantly from 15.47 in Q1 2024 to 9.60 in Q4 2024, suggesting increasingly attractive valuation levels. The EV/EBITDA multiple has also decreased from 8.44 to 7.35, indicating the company is trading at reasonable enterprise value levels.
Price Movement Analysis
The stock has underperformed significantly, dropping 18% over the past 52 weeks while the S&P 500 gained 22.6%. This price decline has created a more attractive entry point from a valuation perspective.
Analyst Consensus
Wall Street maintains a "Moderate Buy" rating with 10 Strong Buys, 6 Holds, and 1 Moderate Sell. The mean price target of $78.09 implies a 28.6% upside potential from current levels.
Growth Outlook
Analysts project EPS growth of 2.6% to $6.99 in fiscal 2025, suggesting modest but stable earnings expansion despite industry headwinds.
Based on these metrics, CNC appears undervalued rather than overvalued at current levels, with multiple expansion potential as the company executes on its growth initiatives and maintains stable profitability.