Don't Buy Humana Before Checking Its Fundamentals!

By Kim Brooks • Wednesday, April 19 12:02 • Permanent Link

Humana marked a -4.2% change today, compared to -0.0% for the S&P 500. Is it a good value at today's price of $490.96? Only an in-depth analysis can answer that question, but here are some facts that can give you an idea:

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States.
Humana belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 24.45 and an average price to book (P/B) of 4.16
The company's P/B ratio is 4.0
Humana has a trailing 12 month Price to Earnings (P/E) ratio of 22.5 based on its trailing 12 month price to earnings (EPS) of $21.84 per share
Its forward P/E ratio is 15.3, based on its forward earnings per share (EPS) of $32.0
HUM has a Price to Earnings Growth (PEG) ratio of 1.28, which shows the company has a fair value when we factor growth into the price to earnings calculus.
Over the last four years, Humana has averaged free cash flows of $3,409,000,000.00, which on average grew -6.6%
Humana has moved 10.1% over the last year compared to -6.8% for the S&P 500 -- a difference of 17.0%
HUM has an average analyst rating of buy and is -18.59% away from its mean target price of $603.05 per share

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.