Price to Book Value (P/BV)
since 2005
Calculation
Humana Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 15, 2024 | 2.70 | = | 363.98 | ÷ | 134.78 | 134.78 | = | 16,262 | ÷ | 120,653,315 | |
| Feb 16, 2023 | 4.13 | = | 505.69 | ÷ | 122.51 | 122.51 | = | 15,311 | ÷ | 124,974,862 | |
| Feb 17, 2022 | 3.34 | = | 424.71 | ÷ | 126.98 | 126.98 | = | 16,080 | ÷ | 126,633,599 | |
| Feb 18, 2021 | 3.55 | = | 378.33 | ÷ | 106.53 | 106.53 | = | 13,728 | ÷ | 128,861,929 | |
| Feb 20, 2020 | 4.07 | = | 370.99 | ÷ | 91.12 | 91.12 | = | 12,037 | ÷ | 132,106,497 | |
| Feb 21, 2019 | 4.10 | = | 307.56 | ÷ | 74.95 | 74.95 | = | 10,161 | ÷ | 135,566,909 | |
| Feb 16, 2018 | 3.76 | = | 269.00 | ÷ | 71.48 | 71.48 | = | 9,842 | ÷ | 137,684,326 | |
| Feb 17, 2017 | 2.86 | = | 204.60 | ÷ | 71.56 | 71.56 | = | 10,685 | ÷ | 149,324,101 | |
| Feb 18, 2016 | 2.40 | = | 167.75 | ÷ | 69.76 | 69.76 | = | 10,346 | ÷ | 148,303,389 | |
| Feb 18, 2015 | 2.41 | = | 155.40 | ÷ | 64.48 | 64.48 | = | 9,646 | ÷ | 149,607,897 | |
| Feb 19, 2014 | 1.69 | = | 101.98 | ÷ | 60.48 | 60.48 | = | 9,316 | ÷ | 154,034,320 | |
| Feb 22, 2013 | 1.26 | = | 70.61 | ÷ | 55.87 | 55.87 | = | 8,847 | ÷ | 158,356,929 | |
| Feb 24, 2012 | 1.81 | = | 89.00 | ÷ | 49.15 | 49.15 | = | 8,063 | ÷ | 164,050,846 | |
| Feb 18, 2011 | 1.50 | = | 61.44 | ÷ | 41.08 | 41.08 | = | 6,924 | ÷ | 168,545,398 | |
| Feb 19, 2010 | 1.34 | = | 45.35 | ÷ | 33.93 | 33.93 | = | 5,776 | ÷ | 170,225,097 | |
| Feb 20, 2009 | 1.54 | = | 40.54 | ÷ | 26.40 | 26.40 | = | 4,457 | ÷ | 168,854,995 | |
| Feb 25, 2008 | 2.91 | = | 68.87 | ÷ | 23.68 | 23.68 | = | 4,029 | ÷ | 170,173,405 | |
| Feb 23, 2007 | 3.32 | = | 60.86 | ÷ | 18.32 | 18.32 | = | 3,054 | ÷ | 166,720,633 | |
| Mar 3, 2006 | 3.36 | = | 50.86 | ÷ | 15.13 | 15.13 | = | 2,474 | ÷ | 163,485,922 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Humana Inc. Annual Report.
The financial trajectory from 2006 to 2024 is characterized by a consistent, long-term increase in book value per share, contrasted by significant volatility in market valuation as reflected in the Price to Book Value (P/BV) ratio. While the intrinsic accounting value of the equity grew steadily over the nearly two-decade period, the market's willingness to pay a premium over that book value fluctuated across three distinct cycles.
- Book Value Progression
- A sustained upward trend in book value per share is observed, rising from 15.13 US$ in 2006 to 134.78 US$ by 2024. This growth remained remarkably consistent, with only a marginal plateau occurring between 2017 and 2019, indicating a steady accumulation of net assets and retained earnings over time.
- P/BV Valuation Cycles
- The P/BV ratio experienced a period of significant compression between 2009 and 2013, falling from 3.36 in 2006 to a period low of 1.26 in 2013. This suggests a phase where the market undervalued the company relative to its accounting equity or perceived higher systemic risks. This was followed by a robust expansion phase starting in 2014, where the ratio climbed steadily to peak at 4.10 in 2019 and reached a maximum of 4.13 in 2023, indicating increased investor confidence and a higher premium assigned to the company's assets.
- Recent Market Correction
- A notable divergence is evident in the most recent reporting period. Between February 2023 and February 2024, the share price declined from 505.69 US$ to 363.98 US$, while the book value per share continued to rise from 122.51 US$ to 134.78 US$. Consequently, the P/BV ratio contracted sharply from 4.13 to 2.70, representing a significant reduction in the market premium despite an increase in the underlying book value.
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Comparison to Competitors
Humana Inc., P/BV, long-term trends, comparison to competitors
| Humana Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Feb 15, 2024 | 2.70 | 5.12 | 3.02 | 10.01 | 2.26 | 5.18 |
| Feb 16, 2023 | 4.13 | 5.06 | 1,553,040.70 | 7.78 | 2.24 | 5.81 |
| Feb 17, 2022 | 3.34 | 5.75 | 3.07 | 8.59 | 3.26 | 6.27 |
| Feb 18, 2021 | 3.55 | 6.65 | 2.19 | 9.53 | 2.48 | 4.83 |
| Feb 20, 2020 | 4.07 | 4.96 | 2.42 | 8.13 | 2.66 | 4.92 |
| Feb 21, 2019 | 4.10 | 4.38 | 2.82 | 8.96 | 2.31 | 4.89 |
| Feb 16, 2018 | 3.76 | 3.40 | 2.24 | 9.91 | 2.40 | 4.59 |
| Feb 17, 2017 | 2.86 | 3.76 | 1.72 | 4.73 | 2.25 | 3.98 |
| Feb 18, 2016 | 2.40 | 2.68 | 1.44 | 4.67 | 2.04 | 3.12 |
| Feb 18, 2015 | 2.41 | 3.32 | 1.62 | 5.55 | 3.27 | 3.20 |
| Feb 19, 2014 | 1.69 | 2.38 | 1.00 | 4.37 | 2.78 | 2.16 |
| Feb 22, 2013 | 1.26 | 2.06 | 0.79 | 6.43 | 2.23 | 1.88 |
| Feb 24, 2012 | 1.81 | 3.61 | 0.95 | 7.31 | 2.59 | 1.96 |
| Feb 18, 2011 | 1.50 | 3.24 | 1.06 | 6.34 | 2.68 | 1.80 |
| Feb 19, 2010 | 1.34 | 3.69 | 1.06 | 8.22 | 2.89 | 1.60 |
| Feb 20, 2009 | 1.54 | 4.78 | 0.96 | 3.55 | 5.03 | 1.67 |
| Feb 25, 2008 | 2.91 | 4.83 | 1.75 | 12.99 | 5.31 | 2.98 |
| Feb 23, 2007 | 3.32 | 5.88 | 2.02 | 7.10 | 5.78 | 3.51 |
| Mar 3, 2006 | 3.36 | 4.69 | 2.04 | 7.80 | 6.06 | 4.50 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Humana Inc., P/BV, long-term trends, comparison to sector (health care equipment & services)
| Humana Inc. | Health Care Equipment & Services | |
|---|---|---|
| Feb 15, 2024 | 2.70 | 4.43 |
| Feb 16, 2023 | 4.13 | 263,051.14 |
| Feb 17, 2022 | 3.34 | 5.01 |
| Feb 18, 2021 | 3.55 | 4.30 |
| Feb 20, 2020 | 4.07 | 4.00 |
| Feb 21, 2019 | 4.10 | 3.83 |
| Feb 16, 2018 | 3.76 | 3.44 |
| Feb 17, 2017 | 2.86 | 2.95 |
| Feb 18, 2016 | 2.40 | 2.39 |
| Feb 18, 2015 | 2.41 | 2.94 |
| Feb 19, 2014 | 1.69 | 2.12 |
| Feb 22, 2013 | 1.26 | 1.89 |
| Feb 24, 2012 | 1.81 | 2.39 |
| Feb 18, 2011 | 1.50 | 2.21 |
| Feb 19, 2010 | 1.34 | 2.31 |
| Feb 20, 2009 | 1.54 | 2.78 |
| Feb 25, 2008 | 2.91 | 3.52 |
| Feb 23, 2007 | 3.32 | 3.80 |
| Mar 3, 2006 | 3.36 | 3.90 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Humana Inc., P/BV, long-term trends, comparison to industry (health care)
| Humana Inc. | Health Care | |
|---|---|---|
| Feb 15, 2024 | 2.70 | 5.94 |
| Feb 16, 2023 | 4.13 | 87,112.79 |
| Feb 17, 2022 | 3.34 | 5.48 |
| Feb 18, 2021 | 3.55 | 5.37 |
| Feb 20, 2020 | 4.07 | 5.14 |
| Feb 21, 2019 | 4.10 | 5.17 |
| Feb 16, 2018 | 3.76 | 4.55 |
| Feb 17, 2017 | 2.86 | 4.06 |
| Feb 18, 2016 | 2.40 | 3.62 |
| Feb 18, 2015 | 2.41 | 4.10 |
| Feb 19, 2014 | 1.69 | 3.51 |
| Feb 22, 2013 | 1.26 | 2.87 |
| Feb 24, 2012 | 1.81 | 2.51 |
| Feb 18, 2011 | 1.50 | 2.24 |
| Feb 19, 2010 | 1.34 | 2.36 |
| Feb 20, 2009 | 1.54 | 2.65 |
| Feb 25, 2008 | 2.91 | 3.45 |
| Feb 23, 2007 | 3.32 | 3.81 |
| Mar 3, 2006 | 3.36 | 3.97 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).