Is Centene Corp (CNC) overvalued?
On Equity Rank's model estimate, CNC trades close to its fair value (4% below it). Centene Corp (CNC) last closed at $69.74; the multi-method model fair value is $72.99.
| Price | Model fair value | Price vs model |
|---|---|---|
| $69.74 | $72.99 | 5% below |
What the answer rests on
- 2 of 8 valuation methods put CNC's value above its price and 6 put it below, so the methods mostly agree.
- To justify today's price, CNC's free cash flow would need to grow about -4.5% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -6.3% a year.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind CNC's fair value · What prices assume · Other companies