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Humana Inc. — Intrinsic Value & Fair Price

HUM
NYSEHealthcareMedical - Healthcare PlansCIK 0000049071humana.comAbout HUM
Last close · Oct 16, 2026413.33−18.87 (−4.37%)
Market cap$49.6B
Model value · DCF · Perpetuity growth · 5y
423.61
Humana closed at $413.33 — undervalued by 2% vs model.
245.89the model's range1,239.57

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
109.41 – 508.08
Wall St. target
487.50 15% below
Below model, 1y
14 of 20 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
0.86%
Past 2 years
low 0.82%high 2.16%
Dividends per share, a year at a time
$2.65Jun ’21$2.98Jun ’22$3.35Jun ’23$3.54Jun ’24$3.54Jun ’25$3.54TTM
Dividends / free cash flow, FY2025
114.7%
Raised
—
Growth, 5 yrs
6.0% a year
Last change
+12.4% · Mar 2023
Every payment, with ex-dates · latest $0.885, paid Jul 31, 2026

Research on HUM

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How it is valued

Valued asMature & stable
Moderate growth (~10% recent)Thin margins (0.9% net margin)Highly cyclical earnings
What growth the price implies: the reverse DCF

Key figures

FY2025 · chosen for mature companies
P/E
42.0×
EV / EBITDA
19.9×
FCF yield
0.8%
Dividend yield, TTM
0.86%
Beta
0.74
Cost of capital (WACC)
7.66%
Full financials

Analyst actions

third-party, quoted
10-13Mizuho Securities · target495.00
10-12Raymond James · “Outperform” from “Market Perform”upgrade
10-12UBS · target495.00
10-12Oppenheimer · target525.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label
Side by side:vs UNH

The weekly

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About Humana

Humana Inc., a prominent health and well-being enterprise, operates across the United States through its various subsidiary companies. Its operational structure is divided into three main segments: Retail, Group and Specialty, and Healthcare Services. The firm provides a wide array of medical and supplementary insurance plans directly to individual consumers. Furthermore, Humana collaborates with government entities; it holds a contract with the Centers for Medicare and Medicaid Services (CMS) to manage the Limited Income Newly Eligible Transition (LI NET) prescription drug program. The company also secures agreements with numerous states to deliver Medicaid, dual-eligible, and long-term care support benefits. For employer groups and individuals, Humana furnishes fully insured commercial medical and specialized health coverage, which encompasses dental, vision, and other ancillary health benefits. They additionally offer administrative services only (ASO) solutions and extend support to military personnel through contracts like the TRICARE T2017 East Region. Beyond insurance products, the company delivers comprehensive healthcare services directly. These include pharmacy management, provider network services, and a suite of home-based solutions such as home health care, serving both its own health plan enrollees and external clients. By the close of 2021 (December 31), Humana's reach extended to approximately 17 million individuals enrolled in its medical benefit plans and an additional 5 million utilizing its specialized product offerings. Established in 1961, Humana Inc. maintains its corporate headquarters in Louisville, Kentucky.

CEO
James A. Rechtin
Headquarters
Louisville, KY
Employees
67,060
IPO
1981-12-31
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.