Centene Corporation (CNC) Stock Valuation — PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$65.19
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Government Contracts
Centene's substantial reliance on government contracts for Medicare and Medicaid provides a stable, recurring revenue stream. These contracts are difficult for competitors to replicate due to regulatory hurdles and established relationships.
↑Scale and Network Effects
As a large managed care provider, Centene benefits from economies of scale in negotiating provider rates and administrative efficiencies. Its extensive network of healthcare providers offers a competitive advantage in serving diverse populations.
↑Focus on Underserved Markets
Centene's strategic focus on serving low-income and vulnerable populations, often through government-sponsored programs, creates a niche market with less intense competition from traditional commercial insurers.
INVESTMENT RISKS
↓Regulatory and Policy Changes
Centene's business is heavily dependent on government healthcare policies. Changes in Medicare or Medicaid regulations, reimbursement rates, or eligibility criteria could significantly impact profitability.
↓Competition and Margin Pressure
The healthcare insurance market is highly competitive. Centene faces pressure from both large national insurers and smaller regional players, which can lead to compressed profit margins.
↓Execution and Integration Risks
Centene has grown through acquisitions. Integrating new businesses and managing operational complexities across a large, diverse organization presents ongoing execution risks and potential cost overruns.
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Centene Corporation functions as a diverse, multinational healthcare organization, primarily dedicated to delivering a comprehensive range of programs and services to underinsured and uninsured individuals throughout the United States. Its Managed Care division provides extensive health plan coverage for people enrolled in various government-sponsored initiatives. These initiatives include Medicaid, the State Children's Health Insurance Program (SCHIP), long-term services and support, foster care, and specialized Medicare-Medicaid plans that cater to individuals dually eligible for both programs, as well as aged, blind, or disabled populations. The broad spectrum of benefits within these health plans encompasses primary and specialty physician care, inpatient and outpatient hospital services, emergency and urgent care, prenatal support, laboratory and X-ray diagnostics, and home-based primary care. Complementary services feature transportation assistance, vision and dental care, telehealth access, immunizations, specialty pharmacy, therapy, social work, nurse advisory support, and care coordination. Additionally, members are covered for prescriptions, limited over-the-counter medications, medical equipment, and essential behavioral health and substance abuse services. This segment also extends its offerings to commercial healthcare products for individuals and employer groups of various sizes. Centene's Specialty Services segment delivers a distinct set of solutions, including pharmacy benefits management (PBM), 24/7 nurse advice lines and after-hours support, vision and dental services, and staffing provisions for correctional systems and other government agencies. This division also serves beneficiaries eligible for the Military Health System. Its clientele for these specialized services spans state programs, correctional institutions, healthcare organizations, employer groups, and other commercial entities. The company delivers its healthcare services through an expansive network comprising primary and specialty care physicians, hospitals, and various ancillary providers. Established in 1984, Centene Corporation is headquartered in St. Louis, Missouri.
Financial Metrics — CNC PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
0.02
Earnings Yield
-20.09%
ROE (TTM)
-28.7%
Revenue/Share (TTM)
$402.59
Debt/Equity
0.76x
Frequently Asked Questions
What is the PE ratio of CNC?
The trailing twelve-month PE ratio of CNC reflects how much investors pay per dollar of Centene Corporation's earnings. This metric is most useful when compared to Medical - Healthcare Plans peers and the company's own historical range.
Is CNC overvalued based on PE ratio?
CNC's PE of -5.0x combined with a PEG ratio of 0.02 provides a growth-adjusted perspective. A PEG below 1.0 suggests CNC may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Healthcare Plans, a DCF analysis may be more appropriate.
How do I value CNC stock using PE ratio?
To value Centene Corporation using PE: (1) Compare the current PE (-5.0x) against the Medical - Healthcare Plans median to assess relative pricing, (2) check the PEG ratio (0.02) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CNC?
CNC's PEG ratio is 0.02, calculated by dividing the PE ratio (-5.0x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CNC stock valuation?
PE ratio gives a quick relative read — how CNC is priced versus Medical - Healthcare Plans peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CNC DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value CNC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.