Centene Corp (CNC) is slightly undervalued and CVS Health Corp (CVS) is slightly overvalued.
Against our estimates of intrinsic value, CNC trades at the wider discount: a margin of safety of +20%, against -10% for CVS.
Values as of the 22 Sept 2026 close.
Its through-the-cycle earnings (2.2% median margin), capitalised at 8.5% with no growth, values the shares at $78.72; the price of $63.30 is 20% below that value.
Leak Score 34/100 on 8 of 12 signals
Discounting its cash flows at 7.3% (average of 3 methods) values the shares at $79.35; the price of $87.10 is 10% above that value, and 82% of that value comes from beyond year five.
Leak Score 36/100 on 9 of 12 signals
| Metric | CNC | CVS |
|---|---|---|
| Verdict | Slightly undervalued | Slightly overvalued |
| Price | $63.30 | $87.10 |
| Intrinsic value | $78.72 | $79.35 |
| Margin of safety | +20% | -10% |
| Leak Score | 34/100 (8/12) | 36/100 (9/12) |
| Market cap | $31.3B | $111.4B |
| Revenue growth, 5 years | 11.9% | 8.4% |
| Operating margin | 0.8% | 3.5% |
| Net margin | -2.5% | 1.2% |
| Return on equity | -20.4% | 6.2% |
| Debt to equity | 0.71 | 0.96 |
| P/E | — | 23.0x |
| Forward P/E | 11.9x | 10.2x |
| P/B | 1.4x | 1.4x |
| Dividend yield | — | 3.1% |