Humana (HUM) Valuation Check After Prolonged Share Price Weakness

  • If you are wondering whether Humana’s current share price reflects its true worth, you are not alone, especially after a tough run for the stock.
  • The share price closed at US$207.93, with returns of a 22.4% decline over 7 days, 19.7% decline over 30 days, 21.4% decline year to date, 30.4% decline over 1 year, 58.0% decline over 3 years and 42.3% decline over 5 years.
  • Recent coverage of Humana has focused on the pressures facing managed care companies and shifting expectations around health plan costs and utilization. These themes have added context to the share price weakness, as investors reassess how much risk they are taking on in this part of the healthcare sector.
  • Against that backdrop, Humana currently scores 5/6 on our valuation…

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