HUM PE Ratio & Valuation,Is HUM Overvalued

HUM Relative Valuation

HUM'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, HUM is overvalued; if below, it's undervalued.

Historical Valuation

Humana Inc (HUM) is now in the Fair zone, suggesting that its current forward PE ratio of 19.81 is considered Fairly compared with the five-year average of 18.68. The fair price of Humana Inc (HUM) is between 254.51 to 305.46 according to relative valuation methord.

Relative Value

Fair Zone

254.51-305.46

Current Price：274.25

Fair

19.81

11.44

EV/EBITDA

Humana Inc. (HUM) has a current EV/EBITDA of 11.44. The 5-year average EV/EBITDA is 11.94. The thresholds are as follows: Strongly Undervalued below 8.75, Undervalued between 8.75 and 10.35, Fairly Valued between 13.54 and 10.35, Overvalued between 13.54 and 15.13, and Strongly Overvalued above 15.13. The current Forward EV/EBITDA of 11.44 falls within the Historic Trend Line -Fairly Valued range.

14.05

EV/EBIT

Humana Inc. (HUM) has a current EV/EBIT of 14.05. The 5-year average EV/EBIT is 14.24. The thresholds are as follows: Strongly Undervalued below 10.51, Undervalued between 10.51 and 12.38, Fairly Valued between 16.10 and 12.38, Overvalued between 16.10 and 17.97, and Strongly Overvalued above 17.97. The current Forward EV/EBIT of 14.05 falls within the Historic Trend Line -Fairly Valued range.

0.23

Humana Inc. (HUM) has a current PS of 0.23. The 5-year average PS is 0.49. The thresholds are as follows: Strongly Undervalued below 0.16, Undervalued between 0.16 and 0.33, Fairly Valued between 0.65 and 0.33, Overvalued between 0.65 and 0.81, and Strongly Overvalued above 0.81. The current Forward PS of 0.23 falls within the Undervalued range.

15.06

P/OCF

Humana Inc. (HUM) has a current P/OCF of 15.06. The 5-year average P/OCF is 11.42. The thresholds are as follows: Strongly Undervalued below -14.18, Undervalued between -14.18 and -1.38, Fairly Valued between 24.21 and -1.38, Overvalued between 24.21 and 37.01, and Strongly Overvalued above 37.01. The current Forward P/OCF of 15.06 falls within the Historic Trend Line -Fairly Valued range.

13.91

P/FCF

Humana Inc. (HUM) has a current P/FCF of 13.91. The 5-year average P/FCF is 15.64. The thresholds are as follows: Strongly Undervalued below 5.71, Undervalued between 5.71 and 10.67, Fairly Valued between 20.61 and 10.67, Overvalued between 20.61 and 25.57, and Strongly Overvalued above 25.57. The current Forward P/FCF of 13.91 falls within the Historic Trend Line -Fairly Valued range.

Humana Inc (HUM) has a current Price-to-Book (P/B) ratio of 1.74. Compared to its 3-year average P/B ratio of 2.68 , the current P/B ratio is approximately -34.95% higher. Relative to its 5-year average P/B ratio of 3.11, the current P/B ratio is about -43.87% higher. Humana Inc (HUM) has a Forward Free Cash Flow (FCF) yield of approximately 4.79%. Compared to its 3-year average FCF yield of 3.68%, the current FCF yield is approximately 30.30% lower. Relative to its 5-year average FCF yield of 4.22% , the current FCF yield is about 13.62% lower.

1.74

P/B

Median3y

2.68

Median5y

3.11

4.79

FCF Yield

Median3y

3.68

Median5y

4.22

Competitors Valuation Multiple

The average P/S ratio for HUM's competitors is 0.36, providing a benchmark for relative valuation. Humana Inc Corp (HUM) exhibits a P/S ratio of 0.23, which is -35.62% above the industry average. Given its robust revenue growth of 11.06%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of HUM increased by 5.81% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 16.23 to 25.73.

The secondary factor is the Revenue Growth, contributed 11.06%to the performance.

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

11.06%

29.40B → 32.65B

Revenue Growth

-63.80%

1.63 → 0.59

Margin Expansion

58.55%

16.23 → 25.73

P/E Change

5.81%

253.71 → 268.45

Mkt Cap Growth

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Frequently Asked Questions

Is Humana Inc (HUM) currently overvalued or undervalued?

What is Humana Inc (HUM) fair value?

HUM'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. The fair price of Humana Inc (HUM) is between 254.51 to 305.46 according to relative valuation methord.

How does HUM's valuation metrics compare to the industry average?

What is the current P/B ratio for Humana Inc (HUM) as of Dec 15 2025?

As of Dec 15 2025, Humana Inc (HUM) has a P/B ratio of 1.74. This indicates that the market values HUM at 1.74 times its book value.

What is the current FCF Yield for Humana Inc (HUM) as of Dec 15 2025?

As of Dec 15 2025, Humana Inc (HUM) has a FCF Yield of 4.79%. This means that for every dollar of Humana Inc’s market capitalization, the company generates 4.79 cents in free cash flow.

What is the current Forward P/E ratio for Humana Inc (HUM) as of Dec 15 2025?

As of Dec 15 2025, Humana Inc (HUM) has a Forward P/E ratio of 19.81. This means the market is willing to pay $19.81 for every dollar of Humana Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Humana Inc (HUM) as of Dec 15 2025?

As of Dec 15 2025, Humana Inc (HUM) has a Forward P/S ratio of 0.23. This means the market is valuing HUM at $0.23 for every dollar of expected revenue over the next 12 months.

HUM Valuation