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Centene Corp. — Intrinsic Value & Fair Price

CNC
NYSEHealthcareMedical - Healthcare PlansCIK 0001071739centene.comAbout CNC
Last close · Oct 16, 202669.16−1.35 (−1.91%)
Market cap$34.2B
Model value · EV/Revenue · peers
158.92
Centene closed at $69.16 — undervalued by 56% vs model.
142.51the model's range226.48

EV/Revenue · peers leads because DCF · Perpetuity growth · 5y could not lead: the cash-flow gate is shut (an operating loss, or three years of free cash flow summing below zero); P/E · peers does not describe this kind of business; EV/EBITDA · peers could not run on the filed statements. From its peers' median EV/Revenue.

Other models
—
Wall St. target
79.00 12% below
Below model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Valuation models

price $69.16 · as of Oct 17, 2026

EV/Revenue · peers leads because DCF · Perpetuity growth · 5y could not lead: the cash-flow gate is shut (an operating loss, or three years of free cash flow summing below zero); P/E · peers does not describe this kind of business; EV/EBITDA · peers could not run on the filed statements. How we value a stock walks through every input.

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How it is valued

Valued asMature & stable
Moderate growth (~12% recent)Currently unprofitableHighly cyclical earningsStrong FCF yield (12.6%)
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
—
EV / EBITDA
-4.1×
FCF yield
12.7%
Dividend yield, TTM
0.00%
Beta
1.13
Cost of capital (WACC)
7.99%
Full financials

Analyst actions

third-party, quoted
08-18UBS · target79.00
08-11Argus Research · “Buy” from “Hold”upgrade
08-11Argus Research · target80.00
08-03Bernstein · target79.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just CNC. No account.

About Centene

Centene Corporation operates as a managed care company that provides programs and services to under-insured families, and commercial organizations in the United States. It operates through four segments: Medicaid, Medicare, Commercial, and Other. The Medicaid segment offers the temporary assistance for needy families; medicaid expansion; aged, blind, or disabled; and children's health insurance programs, as well as long-term services and supports; foster care; and medicare-medicaid plans. This segment also provides healthcare products and services. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual and commercial group. The Other segment operates clinical healthcare and pharmacies, as well as offers vision and dental, behavioral health, and centralized services. It provides services through primary and specialty care physicians, hospitals, behavioral health practitioners, and ancillary providers. The company was founded in 1984 and is headquartered in Saint Louis, Missouri.

CEO
Sarah McGinty London
Headquarters
St. Louis, MO
Employees
61,100
IPO
2001-12-13
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.