Centene Corp. (CNC) Stock Valuation — PE Analysis
Medical - Healthcare Plans · NYSE
Current Price
$64.54
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.
Customize the CNC PE valuation
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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
-20.29%
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 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 -4.9x 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 Corp. using PE: (1) Compare the current PE (-4.9x) 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 (-4.9x) 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 2026-06-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.