Humana Inc. (HUM) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+69.1%

$681.62

vs $403.13 price

Levered DCF

$470.25

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.57

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	25.95×	25.35×	22.79×	23.07×	20.35×	16.11×	18.15×	23.41×
P/B	1.75×	1.87×	3.49×	4.23×	3.71×	3.95×	4.08×	3.88×
P/S	0.24×	0.26×	0.53×	0.7×	0.71×	0.7×	0.76×	0.69×
EV / EBITDA	13.61×	12.48×	13.59×	14.85×	15.6×	10.18×	11.94×	15.26×
Gross margin	14.5%	14.6%	17.0%	18.5%	17.3%	20.3%	17.2%	19.7%
Operating margin	1.1%	1.4%	3.1%	3.8%	4.1%	6.1%	5.3%	3.6%
Net margin	0.9%	1.0%	2.3%	3.0%	3.5%	4.4%	4.2%	3.0%
Current ratio	0.72×	0.44×	0.56×	0.58×	0.5×	0.65×	0.75×	0.51×
Debt / equity	0.73×	0.75×	0.75×	0.77×	0.82×	0.52×	0.51×	0.6×
Interest coverage	2.3×	2.47×	6.73×	8.89×	10.49×	16.52×	14.34×	9.51×
Dividend yield	1.4%	1.4%	0.8%	0.6%	0.6%	0.6%	0.6%	0.7%
Payout ratio	36.2%	35.7%	17.3%	14.0%	12.1%	9.6%	10.7%	15.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.7%	7.4%	15.3%	18.3%	18.2%	24.5%	22.5%	16.6%
Return on invested capital	3.1%	3.4%	6.8%	8.2%	8.1%	12.6%	11.7%	8.2%
Return on assets	2.4%	2.6%	5.3%	6.4%	6.6%	9.6%	9.3%	6.6%
Free cash flow yield	1.2%	7.8%	5.2%	5.3%	1.5%	8.6%	9.3%	4.0%
Earnings yield	3.9%	3.9%	4.4%	4.3%	4.9%	6.2%	5.5%	4.3%
Enterprise value	$39.6B	$40.6B	$64.3B	$71.4B	$69.5B	$56.7B	$51.2B	$43.1B
Net debt / EBITDA	3×	3.08×	1.6×	1.39×	2.21×	0.44×	0.48×	1.32×
Cash conversion cycle (days)	-23	-29	-35	-37	-35	-42	-33	-30