HUM Humana
Intrinsic value$113.10
Price (at call)$400.02
Margin of safety
-71.7%
vs market (rating basis)
-33.3%
Model unavailable; showing baseline valuation.
⚠ LLM error: empty response; using baseline
The story
Value drivers
| Revenue growth (Y1) | 11.8% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 1.6% |
| Years to target margin | 5 |
| Sales-to-capital | 4.85 |
| Beta | 0.74 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 7.8% |
| Terminal WACC | 8.7% |
Valuation bridge
| PV of explicit FCFF | -1.41B |
| PV of terminal value | 23.24B |
| Equity value | 13.58B |
| ÷ shares → per share | $113.10 |
News
neutral -0.10 · 8 articles
- Is HealthStream (HSTM) a Better Healthcare Bet Than Humana (HUM) Right Now?
- Why Is UNH Stock Trading At A Premium With The Slowest Growth?
- Can UnitedHealth's AI Strategy Strengthen Optum Insight's Growth?
- Is Humana Stock Outperforming the Dow?
- UnitedHealth Slips 3% as TPG Buys Into Florida WellMed Clinics Ahead of Guidance Reaffirmation
- Insurers Have Already Told Wall Street Which Advantage Plans Die on December 31. Members Are the Last to Know, and the Letter Isn’t Due Until October 2.
- UnitedHealth Stock Rises 39% in 6 Months: Should Investors Still Buy?
- 1 High-Flying Stock for Long-Term Investors and 2 Facing Headwinds
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 162.82B | 11.8% | 1.6% | 2.23B | 3.53B | -1.31B | -1.21B |
| 2 | 180.49B | 10.8% | 1.6% | 2.47B | 3.64B | -1.17B | -1.01B |
| 3 | 198.41B | 9.9% | 1.6% | 2.71B | 3.69B | -980.54M | -782.73M |
| 4 | 216.29B | 9.0% | 1.6% | 2.96B | 3.69B | -727.19M | -538.49M |
| 5 | 233.79B | 8.1% | 1.6% | 3.20B | 3.61B | -410.39M | -281.91M |
| 6 | 250.56B | 7.2% | 1.6% | 3.43B | 3.46B | -30.34M | -19.33M |
| 7 | 266.24B | 6.3% | 1.6% | 3.64B | 3.23B | 410.40M | 242.60M |
| 8 | 280.45B | 5.3% | 1.6% | 3.84B | 2.93B | 906.70M | 497.19M |
| 9 | 292.84B | 4.4% | 1.6% | 4.00B | 2.55B | 1.45B | 738.01M |
| 10 | 303.09B | 3.5% | 1.6% | 4.15B | 2.11B | 2.03B | 959.13M |