DCF Tool

HUM

Humana Inc. – Home Health Care Services
Humana Inc. is committed to helping its millions of medical and specialty members achieve their best health. Its successful history in care delivery and health plan administration is helping it create a new kind of integrated care with the power to improve health and well-being and lower costs. Its efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large.
Analysis Results
Intrinsic Value $948.08
Latest Price $439.62
Relative Value 54% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 9.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 3.75 3.54
2023 4.09 3.65
2024 4.47 3.77
2025 4.89 3.9
2026 5.34 4.02
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 142 billion. This corresponds to a present value of 101 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 18.9 billion. Adding in the terminal value gives a total present value of 120 billion.

There are presently 126.0 million outstanding shares, so the intrinsic value per share is 948.08.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 24,893,000,000
Current Cash 0
Current Liabilities 15,331,000,000
Current Debt 2,279,000,000
Non-Cash Working Capital (NCWC) 11,841,000,000
Change in NCWC 674,000,000
EBIT 3,213,000,000
Tax Provision 485,000,000
Depreciation and Amortization 713,000,000
Capital Expenditure -1,316,000,000
Unlevered Free Cash Flow 2,828,221,994
Current Assets 23,641,000,000
Current Cash 0
Current Liabilities 13,394,000,000
Current Debt 920,000,000
Non-Cash Working Capital (NCWC) 11,167,000,000
Change in NCWC 1,284,000,000
EBIT 5,060,000,000
Tax Provision 1,307,000,000
Depreciation and Amortization 616,000,000
Capital Expenditure -964,000,000
Unlevered Free Cash Flow 4,581,062,045
Current Assets 19,888,000,000
Current Cash 0
Current Liabilities 10,929,000,000
Current Debt 924,000,000
Non-Cash Working Capital (NCWC) 9,883,000,000
Change in NCWC 1,147,000,000
EBIT 3,206,000,000
Tax Provision 763,000,000
Depreciation and Amortization 575,000,000
Capital Expenditure -736,000,000
Unlevered Free Cash Flow 3,487,049,567
Current Assets 16,948,000,000
Current Cash 0
Current Liabilities 10,077,000,000
Current Debt 1,865,000,000
Non-Cash Working Capital (NCWC) 8,736,000,000
Change in NCWC 449,000,000
EBIT 3,111,000,000
Tax Provision 391,000,000
Depreciation and Amortization 534,000,000
Capital Expenditure -612,000,000
Unlevered Free Cash Flow 2,895,500,000
Current Assets 17,402,000,000
Current Cash 0
Current Liabilities 9,406,000,000
Current Debt 291,000,000
Non-Cash Working Capital (NCWC) 8,287,000,000
Change in NCWC -593,000,000
EBIT 3,326,000,000
Tax Provision 1,572,000,000
Depreciation and Amortization 485,000,000
Capital Expenditure -526,000,000
Unlevered Free Cash Flow 1,391,385,074
Current Assets 16,190,000,000
Current Cash 0
Current Liabilities 7,822,000,000
Current Debt 512,000,000
Non-Cash Working Capital (NCWC) 8,880,000,000
Change in NCWC 721,000,000
EBIT 1,741,000,000
Tax Provision 938,000,000
Depreciation and Amortization 465,000,000
Capital Expenditure -527,000,000
Unlevered Free Cash Flow 1,347,771,907
Current Assets 15,711,000,000
Current Cash 0
Current Liabilities 8,152,000,000
Current Debt 600,000,000
Non-Cash Working Capital (NCWC) 8,159,000,000
Change in NCWC 468,000,000
EBIT 2,347,000,000
Tax Provision 1,155,000,000
Depreciation and Amortization 447,000,000
Capital Expenditure -523,000,000
Unlevered Free Cash Flow 1,623,909,502
Current Assets 14,712,000,000
Current Cash 0
Current Liabilities 7,355,000,000
Current Debt 334,000,000
Non-Cash Working Capital (NCWC) 7,691,000,000
Change in NCWC 1,311,000,000
EBIT 2,362,000,000
Tax Provision 1,023,000,000
Depreciation and Amortization 449,000,000
Capital Expenditure -528,000,000
Unlevered Free Cash Flow 2,480,485,714
Current Assets 12,300,000,000
Current Cash 0
Current Liabilities 6,323,000,000
Current Debt 403,000,000
Non-Cash Working Capital (NCWC) 6,380,000,000
Change in NCWC 721,000,000
EBIT 2,061,000,000
Tax Provision 690,000,000
Depreciation and Amortization 426,000,000
Capital Expenditure -441,000,000
Unlevered Free Cash Flow 2,026,713,690
Current Assets 11,710,000,000
Current Cash 0
Current Liabilities 6,375,000,000
Current Debt 324,000,000
Non-Cash Working Capital (NCWC) 5,659,000,000
Change in NCWC 228,000,000
EBIT 2,016,000,000
Tax Provision 689,000,000
Depreciation and Amortization 338,000,000
Capital Expenditure -410,000,000
Unlevered Free Cash Flow 1,445,142,857

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