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HUM (Humana) Intrinsic Value: Projected FCF : $397.60 (As of Oct. 31, 2024)


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What is Humana Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-10-31), Humana's Intrinsic Value: Projected FCF is $397.60. The stock price of Humana is $257.83. Therefore, Humana's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.

The historical rank and industry rank for Humana's Intrinsic Value: Projected FCF or its related term are showing as below:

HUM' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.65   Med: 1.21   Max: 2.03
Current: 0.65

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Humana was 2.03. The lowest was 0.65. And the median was 1.21.

HUM's Price-to-Projected-FCF is ranked better than
53.85% of 13 companies
in the Healthcare Plans industry
Industry Median: 0.69 vs HUM: 0.65

Humana Intrinsic Value: Projected FCF Historical Data

The historical data trend for Humana's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Humana Intrinsic Value: Projected FCF Chart

Humana Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 229.43 299.77 356.61 360.89 370.18

Humana Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 551.67 370.18 433.81 397.60 -

Competitive Comparison of Humana's Intrinsic Value: Projected FCF

For the Healthcare Plans subindustry, Humana's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Humana's Price-to-Projected-FCF Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, Humana's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Humana's Price-to-Projected-FCF falls into.



Humana Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Humana's Free Cash Flow(6 year avg) = $2,866.40.

Humana's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Sep24)*0.8)/Shares Outstanding (Diluted Average)
=(13.503042164971*2866.4+17565*0.8)/120.764
=436.86

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Humana  (NYSE:HUM) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Humana's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=257.83/436.86131679701
=0.59

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Humana Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Humana's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Humana Business Description

Industry
Address
500 West Main Street, Louisville, KY, USA, 40202
Humana is one of the largest private health insurers in the us with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.
Executives
Jorge S. Mesquita director C/O KRAFT FOODS INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
Susan M Diamond officer: Segment President, Home Bus. 500 W MAIN ST., LOUISVILLE KY 40202
Sanjay K Shetty officer: President, CenterWell 500 W. MAIN STREET, LOUISVILLE KY 40202
George Ii Renaudin officer: President, Medicare & Medicaid 500 W. MAIN SREET, LOUISVILLE KY 40202
Jones David A Jr/ky director C/O HUMANA INC, 500 WEST MAIN STREET, LOUISVILLE KY 40202
Timothy S. Huval officer: Sr. Vice Pres & Chief HR Offic 500 W. MAIN STREET, LOUISVILLE KY 40202
Bruce D Broussard officer: President 500 W. MAIN STREET, C/O HUMANA LAW DEPT., LOUISVILLE KY 40202
Joseph C Ventura officer: Chief Legal Officer & Corp Sec 500 W MAIN STREET, LOUISVILLE KY 40202
William Kevin Fleming officer: President, Hlthcare Svc Sgmt 500 WEST MAIN STREET, LOUISVILLE KY 40202
Timothy Alan Wheatley officer: President, Retail Segment 500 WEST MAIN STREET, LOUISVILLE KY 40202
Samir Deshpande officer: Chief Risk Officer 500 W MAIN STREET, LOUISVILLE KY 40202
Brad D Smith director 1040 13TH AVE, HUNTINGTON WV 25701
John-paul W. Felter officer: SVP, Chief Accting Off & Cont. 500 W MAIN ST, LOUISVILLE KY 40202
Michael A. Koeberlein officer: SVP, Chief Accting Off & Cont. 500 W MAIN ST., LOUISVILLE KY 40202
David T Feinberg director 1299 OCEAN AVENUE, SUITE 1000, SANTA MONICA CA 90401