Centene Corp. (CNC) Stock Valuation — PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$67.05
PE Ratio (TTM)
22.5x
Intrinsic Value
$58.63
-14.4% margin of safety
COMPETITIVE MOAT
↑Government Contract Expertise
Centene excels in navigating complex government contracts for Medicare and Medicaid. This deep regulatory understanding and established relationships create significant barriers to entry for new competitors.
↑Scale and Network Effects
As a large managed care provider, Centene benefits from economies of scale in administrative costs and provider negotiations. Its extensive network of healthcare providers is attractive to members.
↑Member Engagement Programs
Centene's focus on condition-specific coverage and chronic care solutions, like enhanced heart failure coverage, fosters member loyalty and retention. This specialization can reduce churn.
INVESTMENT RISKS
↓Member Exodus and Rate Hikes
A significant departure of Americans from the health insurance market, coupled with substantial rate increases, indicates potential affordability issues and market contraction that could impact enrollment.
↓Prior Authorization Program Adoption
The success of Centene's 'Gold Card' program to streamline prior authorization hinges on widespread adoption and demonstrable cost savings. Failure to achieve this could limit its effectiveness.
↓State-Specific Program Success
Expansion of 'CHOICE Arrangements' into new states like Ohio and Oklahoma relies on replicating early success. Performance in these new markets is crucial for continued growth.
Base case
CNC base case PE valuation
A base case PE valuation for CNC estimates a fair value of about $58.63 per share, against a current price of $67.05. The model assumes 2.3% annual earnings growth, a 22.58x target PE multiple, and a 10% discount rate.
Intrinsic Value
$58.63
Margin of safety
-14.4%
Expected annual return
-2.6%
Base case assumptions: 2.3% annual earnings growth, 22.58x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
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)
22.5x
PEG Ratio
0.20
Earnings Yield
4.43%
ROE (TTM)
6.8%
Revenue/Share (TTM)
$394.00
Debt/Equity
0.70x
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 22.5x combined with a PEG ratio of 0.20 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 (22.5x) against the Medical - Healthcare Plans median to assess relative pricing, (2) check the PEG ratio (0.20) 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 0.20, calculated by dividing the PE ratio (22.5x) 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 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.