Molina Healthcare, Inc. (MOH) Fair Value & PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$200.28
PE Ratio (TTM)
54.3x
Intrinsic Value
$197.71
-1.3% margin of safety
What Is Molina Healthcare, Inc.'s Fair Value?
As of 2026-06-12, applying a 50.0x earnings multiple to Molina Healthcare, Inc.'s (MOH) earnings per share of $3.69 yields a fair value estimate of $197.71 per share, versus a market price of $200.28.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $171.1 to $227.55. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · MOH intrinsic value (DCF view)
Is Molina Healthcare, Inc. (MOH) Overvalued?
At $200.28, MOH trades about 1.3% above its PE-based fair value estimate, a modest premium over the applied earnings multiple. Check whether earnings growth justifies the price.
COMPETITIVE MOAT
↑Government Contract Expertise
Molina excels in navigating complex government contracts for Medicare and Medicaid. This deep regulatory understanding creates high switching costs for government entities.
↑Focus on Underserved Populations
Specializing in low-income and vulnerable populations builds strong community ties and brand loyalty. This niche focus is difficult for competitors to replicate.
↑Scale in Government Programs
Molina's significant scale in government-sponsored health plans provides cost advantages. This allows for competitive bidding and efficient service delivery.
INVESTMENT RISKS
↓Regulatory and Policy Changes
Government healthcare policy shifts can significantly impact profitability and operational models. Changes in reimbursement rates or program eligibility pose a constant threat.
↓Competition for Government Contracts
Intense competition exists for lucrative government health plan contracts. Losing bids can lead to substantial revenue and market share erosion.
↓Execution of Growth Strategies
Successful integration of acquisitions and expansion into new markets is critical. Any missteps in execution could hinder future growth and profitability.
Base case
MOH base case PE valuation
Intrinsic Value
$197.71
Margin of safety
-1.3%
Expected annual return
-0.3%
Base case assumptions: 9.4% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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 MOH PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Molina Healthcare, Inc. respond.
Open PE Calculator for MOHCompany Overview
Molina Healthcare, Inc. offers comprehensive managed health care services, primarily targeting economically disadvantaged families and individuals. The company provides coverage through key government initiatives such as Medicaid and Medicare programs, in addition to state health insurance marketplaces. Its operations are strategically segmented into four main divisions: Medicaid, Medicare, Marketplace, and a general "Other" category. By the close of 2021, specifically December 31st, Molina Healthcare's network extended to approximately 5.2 million members across 18 states, all of whom qualified for Medicaid, Medicare, or other government-sponsored healthcare plans. Established in 1980, the company maintains its corporate headquarters in Long Beach, California.
Financial Metrics — MOH PE Stock Valuation Data
PE Ratio (TTM)
54.3x
PEG Ratio
n/m
Earnings Yield
1.84%
ROE (TTM)
4.4%
Revenue/Share (TTM)
$883.82
Debt/Equity
0.97x
Frequently Asked Questions
What is the PE ratio of MOH?
The trailing twelve-month PE ratio of MOH reflects how much investors pay per dollar of Molina Healthcare, Inc.'s earnings. This metric is most useful when compared to Medical - Healthcare Plans peers and the company's own historical range.
Is MOH overvalued based on PE ratio?
MOH's PE of 54.3x combined with a PEG ratio of -0.65 provides a growth-adjusted perspective. MOH has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 MOH stock using PE ratio?
To value Molina Healthcare, Inc. using PE: (1) Compare the current PE (54.3x) against the Medical - Healthcare Plans median to assess relative pricing, (2) check the PEG ratio (-0.65) 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 MOH?
MOH's PEG ratio is -0.65, calculated by dividing the PE ratio (54.3x) by the expected earnings growth rate. Because MOH has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MOH stock valuation?
PE ratio gives a quick relative read — how MOH 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 MOH 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 MOH 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.