Humana EBITDA vs. Beta
HUM Stock | USD 346.72 2.78 0.80% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 4.6 B | Current Value 4.8 B | Quarterly Volatility 1.3 B |
Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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Gross Profit Margin | 0.69 | 0.8761 |
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Net Profit Margin | 0.0222 | 0.0234 |
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Operating Profit Margin | 0.0506 | 0.0377 |
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Pretax Profit Margin | 0.0302 | 0.0318 |
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Return On Assets | 0.0504 | 0.0531 |
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Return On Equity | 0.25 | 0.1531 |
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For Humana profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Humana to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Humana Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Humana's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Humana Inc over time as well as its relative position and ranking within its peers.
Humana |
Is Humana's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Humana. If investors know Humana will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Humana listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.28) | Dividend Share 3.54 | Earnings Share 19.99 | Revenue Per Share 858.783 | Quarterly Revenue Growth 0.179 |
The market value of Humana Inc is measured differently than its book value, which is the value of Humana that is recorded on the company's balance sheet. Investors also form their own opinion of Humana's value that differs from its market value or its book value, called intrinsic value, which is Humana's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Humana's market value can be influenced by many factors that don't directly affect Humana's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Humana's value and its price as these two are different measures arrived at by different means. Investors typically determine if Humana is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Humana's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Humana Inc Beta vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Humana's current stock value. Our valuation model uses many indicators to compare Humana value to that of its competitors to determine the firm's financial worth. Humana Inc is one of the top stocks in ebitda category among related companies. It is rated # 2 in beta category among related companies . The ratio of EBITDA to Beta for Humana Inc is about 10,147,902,870 . At this time, Humana's EBITDA is very stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Humana by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Humana's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Humana's earnings, one of the primary drivers of an investment's value.Humana Beta vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Humana |
| = | 4.6 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Humana |
| = | 0.45 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Humana Beta Comparison
Humana is currently under evaluation in beta category among related companies.
Beta Analysis
As returns on the market increase, Humana's returns are expected to increase less than the market. However, during the bear market, the loss of holding Humana is expected to be smaller as well.
Humana Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Humana, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Humana will eventually generate negative long term returns. The profitability progress is the general direction of Humana's change in net profit over the period of time. It can combine multiple indicators of Humana, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last Reported | Projected for 2024 | ||
Accumulated Other Comprehensive Income | -999 M | -949 M | |
Operating Income | 4 B | 4.2 B | |
Income Before Tax | 3.4 B | 2.1 B | |
Total Other Income Expense Net | 3.4 B | 3.6 B | |
Net Income | 2.5 B | 2.6 B | |
Income Tax Expense | 836 M | 489 M | |
Net Income Applicable To Common Shares | 3.2 B | 3.4 B | |
Net Income From Continuing Ops | 2.5 B | 2.4 B | |
Non Operating Income Net Other | 189.8 M | 168.1 M | |
Interest Income | 461.1 M | 287 M | |
Net Interest Income | -493 M | -468.4 M | |
Change To Netincome | 231.2 M | 242.7 M | |
Net Income Per E B T | 0.74 | 0.50 |
Humana Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Humana. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Humana position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Humana's important profitability drivers and their relationship over time.
Use Humana in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Humana position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Humana will appreciate offsetting losses from the drop in the long position's value.Humana Pair Trading
Humana Inc Pair Trading Analysis
The ability to find closely correlated positions to Humana could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Humana when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Humana - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Humana Inc to buy it.
The correlation of Humana is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Humana moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Humana Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Humana can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Humana position
In addition to having Humana in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Healthcare Thematic Idea Now
Healthcare
Companies that provide healthcare goods and services including hospitals, health maintenance organizations, HMOs, or medical aid manufacturers. The Healthcare theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
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Complementary Tools for Humana Stock analysis
When running Humana's price analysis, check to measure Humana's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Humana is operating at the current time. Most of Humana's value examination focuses on studying past and present price action to predict the probability of Humana's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Humana's price. Additionally, you may evaluate how the addition of Humana to your portfolios can decrease your overall portfolio volatility.
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To fully project Humana's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Humana Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Humana's income statement, its balance sheet, and the statement of cash flows.