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DCF Valuation
Base-case fair value
$457.19
Intrinsic $609.59 · 25% MOS
Current price: $60.64
Base-case summary
Our base-case DCF for Centene Corp (CNC) projects 10 years of free cash flow growth at 16.6% for years 1–5 and 8.3% for years 6–10, anchored to 16.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $7.1B in trailing free cash flow, this produces an intrinsic value of $609.59 per share. A 25% safety margin gives a fair value of $457.19, suggesting the stock is currently 654% undervalued against the $60.64 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$7.1B
Cash & equivalents
$23.7B
Total debt
$16.4B
Shares outstanding
496M