Centene Corp (CNC) is slightly undervalued and Humana Inc (HUM) is fairly valued.
Against our estimates of intrinsic value, CNC trades at the wider discount: a margin of safety of +20%, against -4% for HUM.
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 8.3% (average of 3 methods) values the shares at $358.19; the price of $372.00 is 4% above that value, and 79% of that value comes from beyond year five.
Leak Score 36/100 on 10 of 12 signals
| Metric | CNC | HUM |
|---|---|---|
| Verdict | Slightly undervalued | Fairly valued |
| Price | $63.30 | $372.00 |
| Intrinsic value | $78.72 | $358.19 |
| Margin of safety | +20% | -4% |
| Leak Score | 34/100 (8/12) | 36/100 (10/12) |
| Market cap | $31.3B | $44.7B |
| Revenue growth, 5 years | 11.9% | 10.9% |
| Operating margin | 0.8% | 1.9% |
| Net margin | -2.5% | 0.9% |
| Return on equity | -20.4% | 6.8% |
| Debt to equity | 0.71 | 0.74 |
| P/E | — | 35.2x |
| Forward P/E | 11.9x | 22.1x |
| P/B | 1.4x | 2.3x |
| Dividend yield | — | 1.0% |