Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Humana Inc., current price multiples
| Humana Inc. | Abbott Laboratories | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | $266.32 | |||||||||||
| No. shares of common stock outstanding | 120,411,343 | |||||||||||
| Growth rate (g) | 17.47% | |||||||||||
| Earnings per share (EPS) | $20.67 | |||||||||||
| Next year expected EPS | $24.28 | |||||||||||
| Operating profit per share | $33.33 | |||||||||||
| Sales per share | $874.54 | |||||||||||
| Book value per share (BVPS) | $135.05 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to earnings (P/E) | 12.88 | 17.14 | 17.65 | 12.85 | 79.70 | 24.66 | 18.93 | 20.02 | 27.29 | |||
| Price to next year expected earnings | 10.97 | 15.59 | 16.89 | 11.46 | 70.52 | 24.28 | 16.46 | 18.28 | 24.88 | |||
| Price-earnings-growth (PEG) | 0.74 | 1.73 | 3.96 | 1.06 | 6.12 | 15.76 | 1.26 | 2.10 | 2.82 | |||
| Price to operating profit (P/OP) | 7.99 | 33.66 | 9.56 | 10.55 | 78.80 | 19.31 | 8.45 | 14.24 | 23.79 | |||
| Price to sales (P/S) | 0.30 | 5.48 | 0.22 | 0.44 | 22.16 | 3.43 | 0.69 | 0.99 | 2.52 | |||
| Price to book value (P/BV) | 1.97 | 4.82 | 1.08 | 1.86 | 11.26 | 2.39 | 2.94 | 3.12 | 5.05 | |||
Based on: 10-K (reporting date: 2023-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Humana Inc., historical price multiples
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The financial ratios for Humana Inc. over the five-year period reveal varying trends in valuation metrics relative to earnings, operating profit, sales, and book value.
- Price to Earnings (P/E) Ratio
- The P/E ratio demonstrates fluctuations with an initial decrease from 18.1 in 2019 to 14.48 in 2020, followed by an increase peaking at 22.52 in 2022 before declining again to 17.64 in 2023. This pattern suggests variability in the market's earnings expectations or actual earnings performance over the years, with a particularly elevated valuation in 2022.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio declined substantially from 15.35 in 2019 to 9.78 in 2020, increased sharply to 17.08 in 2021, and then slightly decreased to 16.63 in 2022, before settling at 10.94 in 2023. The movement indicates significant changes in operating profitability relative to market price, with valuation pressure easing in the most recent year.
- Price to Sales (P/S) Ratio
- The P/S ratio shows a consistent downward trend from 0.76 in 2019 to 0.42 in 2023, indicating a progressive decrease in how the market values the company’s sales over time. This may reflect heightened sales volumes without corresponding market price increases, or a more conservative market outlook on revenue generation.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio trended downward overall, falling from 4.07 in 2019 to 2.7 in 2023. Despite a brief rise to 4.13 in 2022, the general decline points to reduced market valuation relative to the company’s book equity, possibly indicating changing investor sentiment about asset values or growth prospects.
Overall, the data suggest a dynamic valuation environment with notable fluctuations in earnings and operating profit multiples, while valuation ratios related to sales and book value reveal a more consistent downward trend, implying cautious market appraisal of revenue and equity components over the observed period.
Price to Earnings (P/E)
Humana Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 120,653,315 | 124,974,862 | 126,633,599 | 128,861,929 | 132,106,497 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to Humana (in millions) | 2,489) | 2,806) | 2,933) | 3,367) | 2,707) | |
| Earnings per share (EPS)2 | 20.63 | 22.45 | 23.16 | 26.13 | 20.49 | |
| Share price1, 3 | 363.98 | 505.69 | 424.71 | 378.33 | 370.99 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 17.64 | 22.52 | 18.34 | 14.48 | 18.10 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 34.57 | 26.76 | 29.13 | 48.49 | — | |
| CVS Health Corp. | 11.47 | 27.53 | 17.39 | 12.88 | — | |
| Elevance Health Inc. | 19.80 | 19.20 | 18.13 | 15.87 | — | |
| Intuitive Surgical Inc. | 74.11 | 64.99 | 59.94 | 87.47 | — | |
| Medtronic PLC | 30.94 | 23.38 | 46.56 | 26.30 | — | |
| UnitedHealth Group Inc. | 20.53 | 22.46 | 26.03 | 20.54 | — | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 23.36 | 24.57 | 26.88 | 24.48 | — | |
| P/E Ratio, Industry | ||||||
| Health Care | 29.43 | 21.38 | 21.35 | 30.75 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
EPS = Net income attributable to Humana ÷ No. shares of common stock outstanding
= 2,489,000,000 ÷ 120,653,315 = 20.63
3 Closing price as at the filing date of Humana Inc. Annual Report.
4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 363.98 ÷ 20.63 = 17.64
5 Click competitor name to see calculations.
- Share Price
- The share price experienced an overall upward trend from 2019 through 2022, rising from $370.99 to $505.69. However, in 2023, there was a marked decline to $363.98, bringing the price below the levels observed in 2019 and 2020.
- Earnings Per Share (EPS)
- EPS showed significant growth from 2019 to 2020, increasing from $20.49 to $26.13. This was followed by a decline over the next three years, reaching $20.63 in 2023, slightly below the 2019 figure.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio declined notably from 18.1 in 2019 to a low of 14.48 in 2020, indicating the share price was relatively low compared to earnings that year. It then increased to a peak of 22.52 in 2022, before falling again to 17.64 in 2023. This pattern suggests fluctuating investor sentiment and valuation multiples over the period.
- Summary
- From 2019 to 2022, the company experienced rising share price and a peak in P/E ratio, despite EPS peaking earlier in 2020 and then declining. The drop in share price and P/E ratio in 2023 indicates a potential reassessment by the market, likely influenced by declining earnings and changing investor expectations. Overall, the data reflects volatility in market valuation and earnings performance in recent years.
Price to Operating Profit (P/OP)
Humana Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 120,653,315 | 124,974,862 | 126,633,599 | 128,861,929 | 132,106,497 | |
| Selected Financial Data (US$) | ||||||
| Income from operations (in millions) | 4,013) | 3,800) | 3,148) | 4,986) | 3,192) | |
| Operating profit per share2 | 33.26 | 30.41 | 24.86 | 38.69 | 24.16 | |
| Share price1, 3 | 363.98 | 505.69 | 424.71 | 378.33 | 370.99 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 10.94 | 16.63 | 17.08 | 9.78 | 15.35 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 30.54 | 22.18 | 24.45 | 40.69 | — | |
| CVS Health Corp. | 6.96 | 14.75 | 10.43 | 6.65 | — | |
| Elevance Health Inc. | 15.57 | 15.05 | 15.70 | 12.10 | — | |
| Intuitive Surgical Inc. | 75.42 | 54.49 | 56.11 | 88.37 | — | |
| Medtronic PLC | 21.20 | 20.48 | 37.44 | 26.29 | — | |
| UnitedHealth Group Inc. | 14.20 | 15.89 | 18.77 | 14.12 | — | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 16.62 | 17.98 | 19.92 | 17.16 | — | |
| P/OP Ratio, Industry | ||||||
| Health Care | 25.66 | 16.51 | 17.67 | 22.32 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 4,013,000,000 ÷ 120,653,315 = 33.26
3 Closing price as at the filing date of Humana Inc. Annual Report.
4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 363.98 ÷ 33.26 = 10.94
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trend from 2019 through 2022, increasing from 370.99 US$ to a peak of 505.69 US$. However, in 2023, the price declined sharply to 363.98 US$, falling below its 2019 value. This recent decline represents a significant reversal after several years of growth.
- Operating Profit Per Share (OPPS)
- Operating profit per share showed substantial fluctuation over the period. Starting at 24.16 US$ in 2019, it rose markedly to 38.69 US$ in 2020. It then decreased in 2021 to 24.86 US$, followed by a gradual recovery through 2022 and 2023, reaching 33.26 US$. Despite the fluctuations, the 2023 OPPS remains above the 2019 level, indicating an overall positive trend in profitability.
- Price-to-Operating Profit Ratio (P/OP)
- The price-to-operating profit ratio fluctuated significantly. After a decline from 15.35 in 2019 to 9.78 in 2020, it increased sharply in 2021 to 17.08, before slightly decreasing to 16.63 in 2022. In 2023, this ratio dropped to 10.94, close to the lower end of the observed range. The variation in this ratio corresponds to the movements in both share price and operating profit per share, indicating changing investor valuations relative to operating profitability.
- Summary
- The period saw volatility in core financial metrics. Share price growth was strong through 2022 but reversed sharply in 2023. Operating profit per share showed resilience with a dip in 2021 but recovered by 2023. The P/OP ratio’s fluctuations reflect shifting market sentiment and value assessments in relation to operational earnings. Overall, despite recent share price weakness, the company maintained improved operating profitability compared to the start of the period.
Price to Sales (P/S)
Humana Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 120,653,315 | 124,974,862 | 126,633,599 | 128,861,929 | 132,106,497 | |
| Selected Financial Data (US$) | ||||||
| External revenues (in millions) | 105,305) | 92,488) | 82,877) | 76,001) | 64,387) | |
| Sales per share2 | 872.79 | 740.05 | 654.46 | 589.79 | 487.39 | |
| Share price1, 3 | 363.98 | 505.69 | 424.71 | 378.33 | 370.99 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.42 | 0.68 | 0.65 | 0.64 | 0.76 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 4.93 | 4.25 | 4.78 | 6.30 | — | |
| CVS Health Corp. | 0.27 | 0.36 | 0.47 | 0.35 | — | |
| Elevance Health Inc. | 0.70 | 0.74 | 0.81 | 0.60 | — | |
| Intuitive Surgical Inc. | 18.71 | 13.81 | 17.89 | 21.29 | — | |
| Medtronic PLC | 3.72 | 3.72 | 5.57 | 4.36 | — | |
| UnitedHealth Group Inc. | 1.25 | 1.40 | 1.58 | 1.24 | — | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.15 | 1.22 | 1.48 | 1.29 | — | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.72 | 2.48 | 2.65 | 2.59 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
Sales per share = External revenues ÷ No. shares of common stock outstanding
= 105,305,000,000 ÷ 120,653,315 = 872.79
3 Closing price as at the filing date of Humana Inc. Annual Report.
4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 363.98 ÷ 872.79 = 0.42
5 Click competitor name to see calculations.
The analysis of the financial data over the five-year period reveals discernible trends in share price, sales per share, and the price-to-sales (P/S) ratio.
- Share Price
- The share price exhibited an overall upward trajectory from 2019 to 2022, increasing from $370.99 at the end of 2019 to a peak of $505.69 by the end of 2022. However, 2023 saw a marked decline to $363.98, which represents a significant drop from the prior year's high, falling below the 2019 level. This suggests a notable market correction or revaluation occurred in the latest year.
- Sales Per Share
- Sales per share displayed a consistent upward trend throughout the entire period. Beginning at $487.39 in 2019, sales per share increased annually to reach $872.79 by the end of 2023. The growth appears steady and robust, indicating improving revenue generation on a per-share basis despite the fluctuations in share price.
- Price-to-Sales (P/S) Ratio
- The P/S ratio declined from 0.76 in 2019 to 0.42 in 2023, with slight fluctuations between 2020 and 2022, where it hovered between 0.64 and 0.68. The steady decrease in this ratio, particularly the sharp drop in 2023, reflects that the share price growth rate did not keep pace with the growth in sales per share. This may indicate the market's reassessment of the company's valuation relative to its sales performance, potentially suggesting more conservative investor expectations or perceived risks in the later period.
In summary, while sales per share show a clear upward growth pattern indicating improving business fundamentals, the share price does not consistently reflect this growth, especially evident in 2023 with the decline in share price and P/S ratio. This divergence signals a possible shift in market sentiment or valuation metrics applied by investors in the most recent year.
Price to Book Value (P/BV)
Humana Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 120,653,315 | 124,974,862 | 126,633,599 | 128,861,929 | 132,106,497 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 16,262) | 15,311) | 16,080) | 13,728) | 12,037) | |
| Book value per share (BVPS)2 | 134.78 | 122.51 | 126.98 | 106.53 | 91.12 | |
| Share price1, 3 | 363.98 | 505.69 | 424.71 | 378.33 | 370.99 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 2.70 | 4.13 | 3.34 | 3.55 | 4.07 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 5.12 | 5.06 | 5.75 | 6.65 | — | |
| CVS Health Corp. | 1.25 | 1.61 | 1.83 | 1.33 | — | |
| Elevance Health Inc. | 3.02 | 3.19 | 3.07 | 2.19 | — | |
| Intuitive Surgical Inc. | 10.01 | 7.78 | 8.59 | 9.53 | — | |
| Medtronic PLC | 2.26 | 2.24 | 3.26 | 2.48 | — | |
| UnitedHealth Group Inc. | 5.18 | 5.81 | 6.27 | 4.83 | — | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.64 | 3.75 | 4.16 | 3.51 | — | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.44 | 4.90 | 5.07 | 4.90 | — | |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
2 2023 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 16,262,000,000 ÷ 120,653,315 = 134.78
3 Closing price as at the filing date of Humana Inc. Annual Report.
4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 363.98 ÷ 134.78 = 2.70
5 Click competitor name to see calculations.
The data presents key financial indicators over a five-year period.
- Share Price
- The share price exhibited a general upward trend from 2019 to 2022, rising from $370.99 to a peak of $505.69. However, in 2023, the share price declined significantly to $363.98, which is below the 2019 level, indicating a notable decrease after the previous growth.
- Book Value per Share (BVPS)
- The book value per share consistently increased over the five years, rising from $91.12 in 2019 to $134.78 in 2023. There was a steady growth trend each year, except for a slight dip in 2022 to $122.51 from $126.98 in 2021. Despite this minor decline, the overall trajectory remains positive, signaling an increase in the underlying net asset value per share.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio experienced fluctuations across the reported period. It decreased from 4.07 in 2019 to 3.34 in 2021, suggesting the share price was moving closer to the book value per share. In 2022, the ratio increased sharply to 4.13, reflecting the peak in share price relative to book value. The ratio then dropped markedly to 2.7 in 2023, the lowest in the period, driven by the decline in share price and rise in book value. This suggests that the market valuation relative to book value weakened significantly in the most recent year.