CNC Valuation

Centene Corp

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37.100

+0.26(0.706%)1D

CNC Relative Valuation

CNC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CNC is overvalued; if below, it's undervalued.

Historical Valuation

Centene Corp (CNC) is now in the Fair zone, suggesting that its current forward PE ratio of 14.38 is considered Fairly compared with the five-year average of 12.23. The fair price of Centene Corp (CNC) is between 35.50 to 47.56 according to relative valuation methord.

Relative Value

Fair Zone

35.50-47.56

Current Price：36.84

Fair

14.38

Trailing

Forward

14.19

EV/EBITDA

Centene Corp. (CNC) has a current EV/EBITDA of 14.19. The 5-year average EV/EBITDA is 9.73. The thresholds are as follows: Strongly Undervalued below 4.61, Undervalued between 4.61 and 7.17, Fairly Valued between 12.29 and 7.17, Overvalued between 12.29 and 14.85, and Strongly Overvalued above 14.85. The current Forward EV/EBITDA of 14.19 falls within the Overvalued range.

25.69

EV/EBIT

Centene Corp. (CNC) has a current EV/EBIT of 25.69. The 5-year average EV/EBIT is 21.46. The thresholds are as follows: Strongly Undervalued below -71.31, Undervalued between -71.31 and -24.93, Fairly Valued between 67.85 and -24.93, Overvalued between 67.85 and 114.24, and Strongly Overvalued above 114.24. The current Forward EV/EBIT of 25.69 falls within the Historic Trend Line -Fairly Valued range.

36.84

Centene Corp. (CNC) has a current PS of 36.84. The 5-year average PS is 0.47. The thresholds are as follows: Strongly Undervalued below -4.83, Undervalued between -4.83 and -2.18, Fairly Valued between 3.11 and -2.18, Overvalued between 3.11 and 5.76, and Strongly Overvalued above 5.76. The current Forward PS of 36.84 falls within the Strongly Overvalued range.

9.31

P/OCF

Centene Corp. (CNC) has a current P/OCF of 9.31. The 5-year average P/OCF is 10.22. The thresholds are as follows: Strongly Undervalued below 0.01, Undervalued between 0.01 and 5.11, Fairly Valued between 15.32 and 5.11, Overvalued between 15.32 and 20.42, and Strongly Overvalued above 20.42. The current Forward P/OCF of 9.31 falls within the Historic Trend Line -Fairly Valued range.

19.28

P/FCF

Centene Corp. (CNC) has a current P/FCF of 19.28. The 5-year average P/FCF is 12.28. The thresholds are as follows: Strongly Undervalued below 3.41, Undervalued between 3.41 and 7.84, Fairly Valued between 16.72 and 7.84, Overvalued between 16.72 and 21.16, and Strongly Overvalued above 21.16. The current Forward P/FCF of 19.28 falls within the Overvalued range.

Centene Corp (CNC) has a current Price-to-Book (P/B) ratio of 0.86. Compared to its 3-year average P/B ratio of 1.32 , the current P/B ratio is approximately -34.48% higher. Relative to its 5-year average P/B ratio of 1.45, the current P/B ratio is about -40.41% higher. Centene Corp (CNC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 10.70%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 10.52% , the current FCF yield is about -100.00% lower.

0.86

P/B

Median3y

1.32

Median5y

1.45

19.30

FCF Yield

Median3y

10.70

Median5y

10.52

Competitors Valuation Multiple

The average P/S ratio for CNC's competitors is 84.15, providing a benchmark for relative valuation. Centene Corp Corp (CNC) exhibits a P/S ratio of 36.84, which is -56.22% above the industry average. Given its robust revenue growth of 18.24%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Molina Healthcare Inc

Alignment Healthcare Inc

Performance Decomposition

Market capitalization of CNC decreased by 38.60% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.37 to -3.45.

The secondary factor is the Revenue Growth, contributed 18.24%to the performance.

Overall, the performance of CNC in the past 1 year is driven by P/E Change. Which is more unsustainable.

18.24%

42.02B → 49.69B

Revenue Growth

-889.94%

1.69 → -13.35

Margin Expansion

833.10%

-0.37 → -3.45

P/E Change

-38.60%