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					         Discounted Cash Flow (DCF) for Centene Corporation was created by Wikiwealth.com, your source for investment research
Investment research analysis for Wavecom S.A. includes the WACC, discounted cash flow, EV Multiple, and Warren Buffett Calculator.and analysis.                                                                          Warren Buffett calculation for Centene investment was created analysis. Wikiwealth.com, your for investment research and analysis.
                                                                                                                                                                                                                                   WACC (discount source Centene Corporation was created by
                                                                                                                                                  Enterprise Value (EV) multiple analysis for Centene Corporation was created by Wikiwealth.com, yourrate) for for Corporationresearch and by Wikiwealth.com, your sourcesource for investment research and analysis.




                                                                                                          -HOLD
-HOLD




 -23%
                                                                                                                                                                                                                                                                                                                                                                                  Home Page                                                   Cente
                                                                                                                                                                                                                                                                                                                                                                                  Full Research Report


                                                                                          Try The Experimental Mode for CNC                                                                                                                                                                                                                                                      Enter Experimental Mode   Millions USD


                                                                           Target Price                                                                                                                                                                                       Potential Change

                                                                 $26.8                                                                                                                                                                                         (22.7%)                                                                                                           -HOLD                     Total Revenue
                                                                                                                                                                                                                                                                                                                                                                                                           % growth rate

                                                                                     Last Price                                                                                                                                                                                                                  Riskiness                                                         Cash Flow Potential     - COGS
                                                                                                                                                                                                                                                                                                                                                                                                           % of revenue
                                                                 $34.7                                                                                                                                                                                        Medium                                                                                                              (20%)                    Gross Profit
                                                                                                   Analysis (rating, weight, potential)                                                                                                                                                                                                                                                                    % of revenue
            Cash Flow                                                                                                                                  -HOLD                                                                                                                                                       70%                                                  (20%)        Potential Price
            Comparative                                                                                                                                -HOLD                                                                                                                                                       20%                                                  (33%)                              - Operating Exp
            Buffett Calc
            Conclusion
                                                                                                                                                       -HOLD
                                                                                                                                                       -HOLD                                                                                                                                           100%
                                                                                                                                                                                                                                                                                                                   10%                                                  (25%)
                                                                                                                                                                                                                                                                                                                                                                        (23%)        $28                   % of revenue


                                                                                                                                                                                                                                                                                                                                                                                                           - SG&A (Op Ex)
                                                         Important Statistics & CNC SWOT Analysis                                                                                                                                                                                                                                                                                    Last Stock Price      % of revenue
            WACC                                                                                                                                                            11% Div Yield                                                                                                                                                                                 n/a
            Cost of Debt
            Cost of Equity
                                                                                                                                                                                       5% ROIC
                                                                                                                                                                            11% PEG Ratio
                                                                                                                                                                                                                                                                                                                                                                          7%
                                                                                                                                                                                                                                                                                                                                                                          n/a        $35                   EBITDA
                                                                                                                                                                                                                                                                                                                                                                                                           % of revenue
            Implied Debt Cost                                                                                                                                                          0% Market Cap                                                                                                                                                                    1,729
            Risk Free Rate                                                                                                                                             4.3% Reinvest                                                                                                                                                                                    103%                               - D & A (Op Ex)
            Interest Coverage                                                                                                                                                            n/a Beta                                                                                                                                                                        1.03                              % of revenue


                                                                                        Top Competitor → Click To See All                                                                                                                                                                                                                                                                                  EBIT (oper profits)
            Centene (CNC)                                                                                                                                                                                                                                                                                                                                               -HOLD                              % of revenue
            Magellan Health Srvs (MGLN)
            WellCare Health Plans (WCG)                                                                                                                                                                                                                                                                                                                                                                    - Taxes
            AMERIGROUP (AGP)                                                                                                                                                                                                                                                                                                                                                                               % of EBIT
            CIGNA (CI)
            Coventry Health Care (CVH)                                                                                                                                                                                                                                                                                                                                                                     NOPAT
            HC Innovations (HCNV)                                                                                                                                                                                                                                                                                                                                                                          % of revenue
            Aperture Health (APRE)
            Pacific Healthcare (P47)
            0 (0)
            0 (0)                                                                                                                                                                                                                                                                                                                                                                                          +D&A
                                                                                                                                                                                                                                                                                                                                                                                                           % of revenue
            Financial Stats                                                                                                                                                                                                         Competitors                                                                                                                          CNC
            Revenue Growth                                                                                                                                                                                                                                                                                        14%                                                    18%                               - CapEx
            EBITDA Margin                                                                                                                                                                                                                                                                                                    7%                                           3%                               % of revenue
            EBIT Margin                                                                                                                                                                                                                                                                                                      6%                                           2%
            Cash Flow Margin                                                                                                                                                                                                                                                                                                 6%                                           0%                               Working Capital
            Taxes                                                                                                                                                                                                                                                                                                 32%                                                    58%                               % of revenue
            Debt / Equity                                                                                                                                                                                                                                                                                                    1%                                           0%
            Return On Equity                                                                                                                                                                                                                                                                                                 2%                                           0%                               - WC Investment
                                                                                                                                                                                                                                                                                                                                                                                                           % of revenue
            Multiple Stats                                                                                                                                                                                                          Competitors                                                                                                                          CNC
0.3893

            Revenue (x)                                                                                                                                                                                                                                                                                        0.5 x                                                     0.4 x                             Free Cash Flow
8.3952

            EBITDA (x)                                                                                                                                                                                                                                                                                         6.3 x                                                     8.4 x                             % of revenue
11.224

            EBIT (x)                                                                                                                                                                                                                                                                                           7.6 x                                                    11.2 x
 62.21

            Cash Flow (x)                                                                                                                                                                                                                                                                           19.8 x                                                              62.2 x                             Present Value Factor
1.0018

            Book Value (x)                                                                                                                                                                                                                                                                                     0.9 x                                                     1.0 x
n/a

            PE Ratio (x)                                                                                                                                                                                                                                                                            12.0 x                                                                n/a                              Present Value of Free Cash Flows
Important Links
Mutual Funds that own Centene                                   Conclusion: Per Share Value
ETF Funds that own Centene
See Centene's SWOT Analysis                                     Invested Capital (Equity and Debt) Value
See Centene's Company Profile                                   + Excess Cash
                                                                - Interest Bearing Debt, Preferred and Minority I


                                                                Equity Value (Net Present Value)


                                                                Divide: Shares Outstanding

                                                                Fair Value per Share


                                Notes on Analysis:
                                1. All numbers are in millions of US dollars. For valuation purposes, the currenc
                                      Centene (CNC) - Discounted Cash Flow Analysis (DCF)

                                     Historical Year Ended                                                                      Projected Year Ending
                       2006        2007         2008        2009       2010         2011       2012       2013       2014          2015       2016       2017


                        2,297       2,865        3,386       4,119      4,448       5,116       5,371      5,640      5,922         6,218      6,529      6,855
                          n/a       24.7%       18.2%       21.6%       8.0%        15.0%       5.0%       5.0%       5.0%          5.0%       5.0%       5.0%


                              0           0             0          0          0            0          0          0          0             0          0          0
                        0.0%         0.0%        0.0%        0.0%       0.0%         0.0%       0.0%       0.0%       0.0%          0.0%       0.0%       0.0%


                        2,297       2,865        3,386       4,119      4,448       5,116       5,371      5,640      5,922         6,218      6,529      6,855
                       100.0%      100.0%      100.0%       100.0%     100.0%      100.0%      100.0%     100.0%     100.0%       100.0%      100.0%     100.0%


                        2,278       2,841        3,290       4,021      4,294       4,911       5,103      5,358      5,626         5,907      6,202      6,513
                       99.2%        99.2%       97.1%       97.6%      96.5%        96.0%      95.0%      95.0%      95.0%         95.0%      95.0%      95.0%


                        2,257       2,814        3,254       3,977      4,242       4,846       5,030      5,276      5,534         5,804      6,088      6,386
                       98.3%        98.2%       96.1%       96.6%      95.4%        94.7%      93.6%      93.5%      93.4%         93.3%      93.3%      93.2%


                          40           51          132        141        206          269        342        364        388           414        441        469
                        1.7%         1.8%        3.9%        3.4%       4.6%         5.3%       6.4%       6.5%       6.6%          6.7%       6.7%       6.8%


                          21           28          35          44         52           65         73         82         92           103        114        126
                        0.9%         1.0%        1.0%        1.1%       1.2%         1.3%       1.4%       1.5%       1.6%          1.7%       1.7%       1.8%


                          19           24           97         97        154          205        269        282        296           311        326        343
                        0.8%         0.8%        2.9%        2.4%       3.5%         4.0%       5.0%       5.0%       5.0%          5.0%       5.0%       5.0%


                          10           23           52         49         60          120        157        165        173           182        191        200
                       51.6%        97.6%       53.9%       50.3%      38.8%        58.4%      58.4%      58.4%      58.4%         58.4%      58.4%      58.4%


                              9           1         45         48         94           85        112        117        123           129        136        142
                        0.4%         0.0%        1.3%        1.2%       2.1%         1.7%       2.1%       2.1%       2.1%          2.1%       2.1%       2.1%

                                                                              Free Cash Flow to the Firm Analysis


                          21           28           35         44         52           65         73         82         92           103        114        126
                        0.9%         1.0%        1.0%        1.1%       1.2%         1.3%       1.4%       1.5%       1.6%          1.7%       1.7%       1.8%


                          50           40           65         83        119          104        109        115        121           127        133        140
                        2.2%         1.4%        1.9%        2.0%       2.7%         2.0%       2.0%       2.0%       2.0%          2.0%       2.0%       2.0%


                              0           0             0          0          0            0          0          0          0             0          0          0
                        0.0%         0.0%        0.0%        0.0%       0.0%         0.0%       0.0%       0.0%       0.0%          0.0%       0.0%       0.0%


                          n/a             0             0          0          0            0          0          0          0             0          0          0
                          n/a        0.0%        0.0%        0.0%       0.0%         0.0%       0.0%       0.0%       0.0%          0.0%       0.0%       0.0%


                          n/a         (11)          15             9      28           46         75         85         94           105        117        129
                          n/a       -0.4%        0.4%        0.2%       0.6%         0.9%       1.4%       1.5%       1.6%          1.7%       1.8%       1.9%


Present Value Factor              Industry WACC               11%                   0.904       0.817      0.738      0.667         0.602      0.544      0.492


Present Value of Free Cash Flows              Lt Grth          3%                      41         61         62         63            63         64         64
Conclusion: Per Share Value                                                                       Working Capital Inputs               2006      2007


nvested Capital (Equity and Debt) Value                                        1,392              Current Assets                          0         0
                                                                                    0             - Excess Cash                           0         0
- Interest Bearing Debt, Preferred and Minority Interest                            3             - Current Liabilities                   0         0
                                                                                                  + Short Term Debt                       0         0
Equity Value (Net Present Value)                                               1,389              Working Capital                         0         0
                                                                                                  % of revenue                        0.0%       0.0%
Divide: Shares Outstanding                                                         50
                                                                                                  Interest Exp (net)                      0         0
Fair Value per Share                                                             $28              Total Debt                              0         0



US dollars. For valuation purposes, the currency and stock price do not matter, because potential is a relative figure. The higher the potential the better.
 s (DCF)                                            Home Page                                                                 Centene (CNC) -
                                                    Full Research Report


Year Ending                                        Enter Experimental Mode                                        Ent Value       Revenue Growth
              2018       2019       Stable >                                                                       Current         -1yr


               7,198
               5.0%
                          7,558
                          5.0%
                                      7,785
                                       3.0%
                                                   -HOLD                       Centene
                                                                               Magellan Health Srvs
                                                                                                                      1,732
                                                                                                                      1,019
                                                                                                                                   8%
                                                                                                                                  12%
                                                                               WellCare Health Plans                  2,223      -21%
                     0          0         0           Multiples Potential      AMERIGROUP                             3,431       12%
               0.0%       0.0%         0.0%                                    CIGNA                                 13,303       15%


               7,198      7,558       7,785
                                                    (33%)                      Coventry Health Care
                                                                               HC Innovations
                                                                                                                      5,067      -17%


              100.0%     100.0%     100.0%                                     Aperture Health
                                                       Potential Price         Pacific Healthcare
               6,838      7,180       7,396                                    0
              95.0%      95.0%       95.0%
                                                       $23                     0


               6,698      7,026       7,237                                    Low Value                              1,019      -21%
              93.1%      93.0%       93.0%             Last Stock Price        High Value                            13,303       15%
                                                                               Average Value                          5,009        0%
                500
               6.9%
                           532
                          7.0%
                                        548
                                       7.0%
                                                       $35                     Median Value                           3,431       12%

                                                                                                     Centene vs. their Competitors (+ means target compan
                140        154          159                                                                       Ent Value       Revenue Growth
               1.9%       2.0%         2.0%                                    Low Value                              +           +
                                                                               High Value
                360        378          389                                    Average Value                                      +
               5.0%       5.0%         5.0%                                    Median Value
                                                                               Advantages v. Competitors             25%        63%
                210        221          227
              58.4%      58.4%       58.4%     Notes on Analysis:
                                               1. WikiWealth uses quantitative measures to determine the multiple range.
                150        157          162    2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to debt hold
               2.1%       2.1%         2.1%    3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute EV to competito
                                               4. We exclude outliers in the individual company multiples.

                                               Additional Calculations
                140        154          159
               1.9%       2.0%         2.0%                                                                                Financial Analysis
                                               Stock Research                                                    Revenue       EBITDA
                147        154          159
               2.0%       2.0%         2.0%    Centene                                                                 4,448       206
                                               Magellan Health Srvs                                                   2,969       276
                     0          0              WellCare Health Plans                                                  5,440       (49)
               0.0%       0.0%                 AMERIGROUP                                                             5,806       472
                                               CIGNA                                                                 21,253     2,162
                     0          0         0    Coventry Health Care                                                  11,666       868
               0.0%       0.0%         0.0%    HC Innovations
                                               Aperture Health
                143        157          162    Pacific Healthcare
               2.0%       2.1%         2.1%    0
                                               0
               0.444      0.402       0.402
                                               Average Value                                                           8,597       656
                 63         63          847
                               2008   2009   2010


                                 0      0      0
                                 0      0      0
                                 0      0      0
                                 0      0      0
                                 0      0      0
                           0.0%       0.0%   0.0%


                                 0      0      0
                                 0     19      3



er the potential the better.
             Centene (CNC) - Comparative (EV) Multiples

               Revenue Growth           EBITDA Margin                EBIT Margin        Cash Flow Margin           Enterprise Value Multiples
                        -5yr    +5yr   -1yr     -5yr   +5yr      -1yr    -5yr   +5yr    -1yr   -5yr   +5yr    Rev         EBITDA        EBIT        FCF


                       18%       7%     5%       3%        6%    4%       2%       5%    1%    2%      1%      0.4 x         8.4 x      11.2 x      62.2 x Include
                       16%       3%     8%       9%        8%    7%       7%       7%    4%    7%      4%      0.3 x         3.7 x        4.6 x       5.5 x Include
                       13%       5%     0%       3%        2%    0%       3%       2%    0%    3%      1%      0.4 x          n/m          n/m         n/m Include
                       20%       6%     5%       5%        5%    4%       4%       4%    3%    4%      3%      0.6 x         7.3 x        7.8 x     12.3 x Include
                         7%      3%    10%       9%    10%       8%       8%       8%    6%    8%      6%      0.6 x         6.2 x        7.1 x       9.9 x Include
                       12%       4%    10%     10%     10%       8%       8%       8%    7%    8%      6%      0.4 x         5.8 x        7.4 x       9.1 x Include
                                                                                                                                                                Include
                                                                                                                                                                Include
                                                                                                                                                                Include
                                                                                                                                                                Include
                                                                                                                                                                Include


                         7%      3%     0%       3%        2%    0%       3%       2%    0%    3%      1%     0.3 x         3.7 x       4.6 x       5.5 x
                       20%       6%    10%     10%     10%       8%       8%       8%    7%    8%      6%     0.6 x         8.4 x       11.2 x      62.2 x
                       14%       4%     7%       7%        7%    6%       6%       6%    4%    6%      4%     0.5 x         6.3 x       7.6 x       19.8 x
                       13%       4%     8%       9%        8%    7%       7%       7%    4%    7%      4%     0.4 x         6.2 x       7.4 x       9.9 x

 their Competitors (+ means target company ratios better than competitor ratios)                                          Concluded Range
               Revenue Growth           EBITDA Margin                EBIT Margin        Cash Flow Margin       Ave          Ave     Low      Low
                        +       +      +        +          +     +                 +    +             +                   Concluded Multiple
                                +                                                                             0.4 x         6.2 x       7.4 x       9.9 x
                        +       +                                                                                     Potential per Multiple
                        +       +                                                                             14%           -26%        -34%        -84%
                        =      Ave     25%      =      Ave      19%      =      Low     19%    =      Low    Conclusion                             (33%)



ple range.
quity holders plus interest owed to debt holders.
Wealth compares absolute EV to competitors.




        Financial Analysis                    Enterprise Value Calculation                                   Rev          EBITDA        EBIT        FCF
                     EBIT      FCFF
                                              Current Financial Results                                        4,448          206          154          28
                        154      28           Multiple x                                                       0.4 x         6.2 x        7.4 x       9.9 x
                       221      186           Multiple Calculation                                             1,973        1,281        1,139         276
                        (73)    (57)
                       437      279           Enterprise Value
                     1,870 1,341              Less: Total Debt                                                        3             3           3           3
                       687      557           Plus: Excess Cash                                                       0             0           0           0
                                              = Stock Holder's Equity Capital                                  1,969        1,278        1,136         273


                                              Divide: Shares Outstanding                                           50          50           50          50
                                              = Fair Value per Share                                               40          26           23              5


                                              Current Stock Price                                                 35            35          35          35
                        549     389           Potential Stock Increase                                          14%          -26%        -34%        -84%
   Home Page                                                         Centene (CNC) - Warren Buffett Valu
   Full Research Report


 Enter Experimental Mode                            Historical Financials (% of revenue)
                              Financial Results         2007     2008     2009     2010    2011    Ave


  -HOLD                       Revenue Growth
                              Gross Profit
                                                           n/a
                                                        100%
                                                                   25%
                                                                 100%
                                                                            18%
                                                                          100%
                                                                                     22%
                                                                                   100%
                                                                                             8%
                                                                                           100%
                                                                                                  18%
                                                                                                  100%
                              EBITDA Margin                2%       2%       4%       3%     5%    3%
      Buffett Potential       EBIT Margin                  1%       1%       3%       2%     3%    2%
                              Tax Rates                   52%      98%      54%      50%    39%   58%

    (25%)                     NOPAT
                              D&A
                                                           0%
                                                           1%
                                                                    0%
                                                                    1%
                                                                             1%
                                                                             1%
                                                                                      1%
                                                                                      1%
                                                                                             2%
                                                                                             1%
                                                                                                   1%
                                                                                                   1%

       Potential Price        Capital Expenditure          2%       1%       2%       2%     3%    2%


      $26
                              Working Capital Inv          0%       0%       0%       0%     0%    0%
      Last Stock Price


      $35                     Free Cash Flow               n/a      0%       0%       0%     1%    0%

     Investment Score


      50%
Notes on Analysis:
1. The Warren Buffett Valuation model is an experimental model developed to mimic the investment approach used by Warren Buffett, the
CNC) - Warren Buffett Value Calculator                                                                                          Home Page
                                                                                                                                 Full Research Report
                                                                                                                    \




                       Buffett          Criteria / Questions / Score            Buffett Intrinsic Value Calc
                       Results
                                                                                                                        WACC
                         9%       Consistency                                   Buffett Formula (FCF/RFR)               WACC Inputs
                        75%       Consistency            Pass       5%                                                  Risk Free Rate
                        15%       Consistency                               Free Cash Flow (fcf)               37       Cost of Debt
                        13%       Consistency                               Risk-Free Rate (rfr)           4.3%         Equity Risk Prem
                        30%       Consistency                               Buffett Fair Value (EV)        881          Alpha
                         9%       Consistency                                                                           Country Risk Premium
                         3%       Consistency            Pass       5%          Enterprise Value (EV) Calc
                                                                                                                        Industry WACC Calculation
                         5%       Consistency            Pass       5%      + Cash                             0        Beta (unlevered)
                                  < Buffett Portfolio    Pass      10%      - Debt                             3        Industry D/E
                                  Low                    Pass       5%      Equity Capital                 878          Tax Rate (5 yrs)
                                                                                                                        Beta (relevered)
                         0%       Consistency            Pass       5%      Shares                             50
                                  < Buffett Portfolio    Pass      10%                                                  Cost of Debt (after-tax)
                                  < Rev Growth           Pass       5%      Potential Stock Price      $       18       Debt / Capital
                                                                            Current Stock Price        $       35       WAC (debt)
                         6%       Consistency                               Potential Return               -49%
                                  > Buffett Portfolio                       Investment Score               50%          Cost of Equity (capm)
                                                                                                                        Equity / Capital
                                  Investment Score                 50%      Adjusted Potential             -25%         WAC (equity)


                                                                                                                        WACC Conclusion




                                                                                                                        Notes on Analysis:
e investment approach used by Warren Buffett, the most successful investor of all time.
                                                                                                                        1. The WACC (discount rate) calculation uses c
                                                                                                                        over the long term. If there are any short-term di
                                                                                                                        likely to revert to the industry WACC (discount ra


                                                                                                                        2. The WACC calculation uses the higher of the
                                                                                                                        occur if the beta is negative and the company us
    Home Page                                                                Centene (CNC) - WACC Discount Rate
    Full Research Report


                                                                    Calculation to Find the Industry Average Estimates for the WACC Calculation (Millions USD)
                       11%
                                                                                                    Beta
                                     Name (click for report)                             Price     levered     Debt       Shares   Equity    Capital
                             4.3%
                             5.3%    Centene                                            $    35     1.03              3       50    1,729      1,732
                             5.0%    Magellan Health Srvs                               $    52     0.53              1       32    1,662      1,663
                             0.0%    WellCare Health Plans                              $    49     1.88         121          43    2,101      2,223
                             0.0%    AMERIGROUP                                         $    69     0.66              0       50    3,431      3,431
                                     CIGNA                                              $    49     1.54          18         271   13,285    13,303
stry WACC Calculation                Coventry Health Care                               $    34     1.87              0      148    5,067      5,067
                              1.28 HC Innovations
                             0.1%    Aperture Health
                            30.7%    Pacific Healthcare
                              1.28 0
                                     0
                             3.6%
                             0.1%    Median (middle #)                                              1.29              2       50    2,766      2,827
                             0.0%


                            10.7%
                            99.9%
                            10.7%


                            10.7%




he WACC (discount rate) calculation uses comparable companies to produce a single WACC (discount rate). An industry average WACC (discount rate) is the most accurate
 the long term. If there are any short-term differences between the industry WACC and an individual company's WACC (discount rate), then the companies WACC (discount
  to revert to the industry WACC (discount rate) over the long term.


he WACC calculation uses the higher of the WACC or the risk free rate, because no investment can have a cost of capital that is better than risk free. This situation may
 r if the beta is negative and the company uses a significant proportion of equity capital.
scount Rate

ACC Calculation (Millions USD)


                        Debt       Debt               Beta
                       Equity     Capital   Tax %    unlever


                          0.2%       0.2%    58.4%      1.03 Include
                          0.0%       0.0%    40.3%      0.53 Include
                          5.8%       5.5%    30.0%      1.81 Include
                          0.0%       0.0%    30.0%      0.66 Include
                          0.1%       0.1%    30.0%      1.54 Include
                          0.0%       0.0%    31.5%      1.87 Include




                          0.1%       0.1%    30.7%      1.28




e WACC (discount rate) is the most accurate for a company
t rate), then the companies WACC (discount rate) is more



better than risk free. This situation may

				
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