Centene Corp (CNC) receives a strong valuation ranking of 99 from InvestorsObserver's data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. CNC has a better value than 99% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.
Metrics Analysis
CNC has a trailing twelve month Price to Earnings (PE) ratio of 20.5 which places it above the histroical average of roughly 15. CNC is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. CNC's trailing-12-month earnings per share (EPS) of 3.06 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
CNC currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 0.99. The market is currently fairly valuing CNC in relation to its projected growth due to the PEG ratio being around the fair market value of 1. CNC's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.
Summary
All together these valuation metrics paint a pretty adequate picture for CNC at its current price due to a fairly valued PEG ratio despite strong growth. The PE and PEG for CNC are around the average of the market resulting in a valuation score of 99.
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