HUM Valuation

Humana Inc

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266.680

+10.54(4.115%)1D

Overview
Forecast
Valuation
Earnings

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 18.15 is considered Fairly compared with the five-year average of 19.24. The fair price of Humana Inc (HUM) is between 221.90 to 297.13 according to relative valuation methord.

Relative Value

Fair Zone

221.90-297.13

Current Price：266.68

Fair

18.15

Trailing

Forward

10.44

EV/EBITDA

Humana Inc. (HUM) has a current EV/EBITDA of 10.44. The 5-year average EV/EBITDA is 12.33. The thresholds are as follows: Strongly Undervalued below 8.32, Undervalued between 8.32 and 10.33, Fairly Valued between 14.33 and 10.33, Overvalued between 14.33 and 16.34, and Strongly Overvalued above 16.34. The current Forward EV/EBITDA of 10.44 falls within the Historic Trend Line -Fairly Valued range.

12.84

EV/EBIT

Humana Inc. (HUM) has a current EV/EBIT of 12.84. The 5-year average EV/EBIT is 14.69. The thresholds are as follows: Strongly Undervalued below 9.87, Undervalued between 9.87 and 12.28, Fairly Valued between 17.09 and 12.28, Overvalued between 17.09 and 19.50, and Strongly Overvalued above 19.50. The current Forward EV/EBIT of 12.84 falls within the Historic Trend Line -Fairly Valued range.

0.24

Humana Inc. (HUM) has a current PS of 0.24. The 5-year average PS is 0.52. The thresholds are as follows: Strongly Undervalued below 0.21, Undervalued between 0.21 and 0.37, Fairly Valued between 0.67 and 0.37, Overvalued between 0.67 and 0.83, and Strongly Overvalued above 0.83. The current Forward PS of 0.24 falls within the Undervalued range.

11.67

P/OCF

Humana Inc. (HUM) has a current P/OCF of 11.67. The 5-year average P/OCF is 11.65. The thresholds are as follows: Strongly Undervalued below -14.12, Undervalued between -14.12 and -1.24, Fairly Valued between 24.54 and -1.24, Overvalued between 24.54 and 37.43, and Strongly Overvalued above 37.43. The current Forward P/OCF of 11.67 falls within the Historic Trend Line -Fairly Valued range.

13.23

P/FCF

Humana Inc. (HUM) has a current P/FCF of 13.23. The 5-year average P/FCF is 16.14. The thresholds are as follows: Strongly Undervalued below 6.01, Undervalued between 6.01 and 11.08, Fairly Valued between 21.21 and 11.08, Overvalued between 21.21 and 26.28, and Strongly Overvalued above 26.28. The current Forward P/FCF of 13.23 falls within the Historic Trend Line -Fairly Valued range.

Humana Inc (HUM) has a current Price-to-Book (P/B) ratio of 1.76. Compared to its 3-year average P/B ratio of 2.96 , the current P/B ratio is approximately -40.45% higher. Relative to its 5-year average P/B ratio of 3.24, the current P/B ratio is about -45.62% higher. Humana Inc (HUM) has a Forward Free Cash Flow (FCF) yield of approximately 7.92%. Compared to its 3-year average FCF yield of 4.10%, the current FCF yield is approximately 93.10% lower. Relative to its 5-year average FCF yield of 4.48% , the current FCF yield is about 76.59% lower.

1.76

P/B

Median3y

2.96

Median5y

3.24

7.92

FCF Yield

Median3y

4.10

Median5y

4.48

Competitors Valuation Multiple

The average P/S ratio for HUM's competitors is 0.96, providing a benchmark for relative valuation. Humana Inc Corp (HUM) exhibits a P/S ratio of 0.24, which is -75.46% above the industry average. Given its robust revenue growth of 9.64%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Prudential Financial Inc

Equitable Holdings Inc

Reinsurance Group of America Inc

Performance Decomposition

Market capitalization of HUM decreased by 24.77% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 29.54B to 32.39B.

The secondary factor is the P/E Change, contributed -7.45%to the performance.

Overall, the performance of HUM in the past 1 year is driven by Revenue Growth. Which is more sustainable.

9.64%

29.54B → 32.39B

Revenue Growth

-26.96%

2.30 → 1.68

Margin Expansion

-7.45%

22.11 → 20.46

P/E Change

-24.77%