• Return to Headlines

Humana is Among the Companies in the Managed Health Care Industry With the Highest EV/EBITDA Ratio (HUM, UNH, CI, AET, CNC)

By James Quinn

Below are the three companies in the Managed Health Care industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Humana ranks highest with a an EV/EBITDA ratio of 12.69. UnitedHealth is next with a an EV/EBITDA ratio of 12.64. CIGNA ranks third highest with a an EV/EBITDA ratio of 11.51.

Aetna follows with a an EV/EBITDA ratio of 10.23, and Centene rounds out the top five with a an EV/EBITDA ratio of 8.94.

SmarTrend recommended that subscribers consider buying shares of Centene on November 18th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $57.24. Since that recommendation, shares of Centene have risen 37.4%. We continue to monitor Centene for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio Humana UnitedHealth CIGNA Aetna centene

Ticker(s): HUM UNH CI AET CNC