Centene Corp. (CNC) Stock Valuation — PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$61.83
PE Ratio (TTM)
n/m
Intrinsic Value
Use the calculator below to estimate
COMPETITIVE MOAT
↑Medicaid Contract Dominance
Centene's extensive network of state Medicaid contracts creates significant barriers to entry. Winning and maintaining these contracts requires deep regulatory understanding and established relationships.
↑Scale and Data Advantage
Operating at a massive scale provides Centene with substantial data on member health and costs. This data fuels AI-driven fraud prevention and operational efficiencies.
↑Integrated Healthcare Model
Centene's focus on an integrated healthcare model allows for better cost control and care coordination. This approach enhances member satisfaction and operational effectiveness.
INVESTMENT RISKS
↓Execution Risk in Margin Recovery
Centene's ability to sustain margin recovery hinges on successful operational execution. Any missteps in cost control or efficiency improvements could hinder earnings growth.
↓Dependence on Government Programs
A significant portion of Centene's revenue is derived from government-sponsored programs like Medicaid. Changes in program funding or eligibility could materially affect the business.
↓AI Implementation Challenges
While AI is a strength, the successful and ethical implementation of AI for fraud prevention and operations presents ongoing challenges and requires continuous adaptation.
Customize the CNC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Centene Corp. respond.
Open PE Calculator for CNCCompany Overview
Centene Corporation operates as a managed care company that provides programs and services to under-insured families, and commercial organizations in the United States. It operates through four segments: Medicaid, Medicare, Commercial, and Other. The Medicaid segment offers the temporary assistance for needy families; medicaid expansion; aged, blind, or disabled; and children's health insurance programs, as well as long-term services and supports; foster care; and medicare-medicaid plans. This segment also provides healthcare products and services. The Medicare segment offers special needs and medicare supplement, and prescription drug plans. The Commercial segment provides health insurance marketplace product for individual and commercial group. The Other segment operates clinical healthcare and pharmacies, as well as offers vision and dental, behavioral health, and centralized services. It provides services through primary and specialty care physicians, hospitals, behavioral health practitioners, and ancillary providers. The company was founded in 1984 and is headquartered in Saint Louis, Missouri.
Financial Metrics — CNC PE Stock Valuation Data
PE Ratio (TTM)
n/m
PEG Ratio
0.02
Earnings Yield
-16.70%
ROE (TTM)
-24.0%
Revenue/Share (TTM)
$392.32
Debt/Equity
0.71x
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 Corp.'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 -5.9x combined with a PEG ratio of 0.02 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the 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 Corp. using PE: (1) Compare the current PE (-5.9x) 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 (-5.9x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.