Medical - Healthcare Plans · NYSE
Current Price
$196.49
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Molina Healthcare, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for MOHMolina Healthcare, Inc. provides managed health care services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates in four segments, Medicaid, Medicare, Marketplace, and Other. As of December 31, 2021, the company served the company served approximately 5.2 million members eligible for Medicaid, Medicare, and other government-sponsored healthcare programs in 18 states. The company was founded in 1980 and is headquartered in Long Beach, California.
ROIC (TTM)
5.3%
ROE (TTM)
4.4%
FCF Yield
2.45%
Based on trailing twelve-month data, MOH shows a free cash flow per share of N/A and a ROIC of 5.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.45% are important context metrics when evaluating MOH's stock valuation relative to peers.
The intrinsic value of MOH depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether MOH is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $196.49. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Molina Healthcare, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Medical - Healthcare Plans industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MOH's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Molina Healthcare, Inc., this means projecting how much free cash flow the Medical - Healthcare Plans will produce over the next 5-10 years, then discounting those amounts to today's dollars. MOH's ROIC of 5.3% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MOH, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
