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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
