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 14.82 is considered Fairly compared with the five-year average of 12.23. The fair price of Centene Corp (CNC) is between 34.13 to 45.93 according to relative valuation methord.
Relative Value
Fair Zone
34.13-45.93
Current Price：37.08
Fair
15.10
PE
1Y
3Y
5Y
Trailing
Forward
14.35
EV/EBITDA
Centene Corp. (CNC) has a current EV/EBITDA of 14.35. The 5-year average EV/EBITDA is 9.75. The thresholds are as follows: Strongly Undervalued below 4.59, Undervalued between 4.59 and 7.17, Fairly Valued between 12.32 and 7.17, Overvalued between 12.32 and 14.90, and Strongly Overvalued above 14.90. The current Forward EV/EBITDA of 14.35 falls within the Overvalued range.
36.99
EV/EBIT
Centene Corp. (CNC) has a current EV/EBIT of 36.99. The 5-year average EV/EBIT is 21.59. The thresholds are as follows: Strongly Undervalued below -71.35, Undervalued between -71.35 and -24.88, Fairly Valued between 68.06 and -24.88, Overvalued between 68.06 and 114.52, and Strongly Overvalued above 114.52. The current Forward EV/EBIT of 36.99 falls within the Historic Trend Line -Fairly Valued range.
37.08
PS
Centene Corp. (CNC) has a current PS of 37.08. The 5-year average PS is 0.70. The thresholds are as follows: Strongly Undervalued below -7.12, Undervalued between -7.12 and -3.21, Fairly Valued between 4.61 and -3.21, Overvalued between 4.61 and 8.52, and Strongly Overvalued above 8.52. The current Forward PS of 37.08 falls within the Strongly Overvalued range.
7.53
P/OCF
Centene Corp. (CNC) has a current P/OCF of 7.53. The 5-year average P/OCF is 10.14. The thresholds are as follows: Strongly Undervalued below 0.06, Undervalued between 0.06 and 5.10, Fairly Valued between 15.18 and 5.10, Overvalued between 15.18 and 20.21, and Strongly Overvalued above 20.21. The current Forward P/OCF of 7.53 falls within the Historic Trend Line -Fairly Valued range.
19.83
P/FCF
Centene Corp. (CNC) has a current P/FCF of 19.83. The 5-year average P/FCF is 12.30. The thresholds are as follows: Strongly Undervalued below 3.37, Undervalued between 3.37 and 7.84, Fairly Valued between 16.76 and 7.84, Overvalued between 16.76 and 21.22, and Strongly Overvalued above 21.22. The current Forward P/FCF of 19.83 falls within the Overvalued range.
Centene Corp (CNC) has a current Price-to-Book (P/B) ratio of 0.85. Compared to its 3-year average P/B ratio of 1.30 , the current P/B ratio is approximately -34.36% higher. Relative to its 5-year average P/B ratio of 1.44, the current P/B ratio is about -40.79% higher. Centene Corp (CNC) has a Forward Free Cash Flow (FCF) yield of approximately 18.77%. Compared to its 3-year average FCF yield of 10.43%, the current FCF yield is approximately 79.98% lower. Relative to its 5-year average FCF yield of 10.46% , the current FCF yield is about 79.48% lower.
0.87
P/B
Median3y
1.30
Median5y
1.44
0.06
FCF Yield
Median3y
10.43
Median5y
10.46
Competitors Valuation Multiple
The average P/S ratio for CNC's competitors is 76.44, providing a benchmark for relative valuation. Centene Corp Corp (CNC) exhibits a P/S ratio of 37.08, which is -51.49% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CNC decreased by 38.20% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.37 to -3.47.
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.
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FAQ
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