Humana Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Humana	2,489)	2,806)	2,933)	3,367)	2,707)
Net (income) loss attributable to noncontrolling interests	(5)	(4)	1)	—)	—)
Net noncash charges	1,416)	1,251)	(116)	129)	914)
Changes in operating assets and liabilities, net of effect of businesses acquired and dispositions	81)	534)	(556)	2,143)	1,663)
Net cash provided by operating activities	3,981)	4,587)	2,262)	5,639)	5,284)
Interest payments, net of tax¹	295)	278)	245)	186)	165)
Purchases of property and equipment	(1,004)	(1,137)	(1,342)	(964)	(736)
Proceeds from sale of property and equipment	210)	17)	26)	—)	—)
Free cash flow to the firm (FCFF)	3,482)	3,745)	1,191)	4,861)	4,713)

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 See details »

Download chart

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Humana Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Humana Inc. FCFF increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Humana Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	25.18%	21.38%	14.19%	27.96%	21.99%
Interest Paid, Net of Tax
Interest payments, before tax	394)	354)	285)	258)	212)
Less: Interest payments, tax²	99)	76)	40)	72)	47)
Interest payments, net of tax	295)	278)	245)	186)	165)

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 See details »

² 2023 Calculation
Interest payments, tax = Interest payments × EITR
= 394 × 25.18% = 99

Download chart

Humana Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	29,937)
Free cash flow to the firm (FCFF)	3,482)
Valuation Ratio
EV/FCFF	8.60
Benchmarks
EV/FCFF, Competitors¹
Abbott Laboratories	33.81
Cigna Group	10.76
CVS Health Corp.	11.28
Danaher Corp.	34.40
Elevance Health Inc.	14.66
Intuitive Surgical Inc.	168.29
Medtronic PLC	24.31
UnitedHealth Group Inc.	17.42
EV/FCFF, Sector
Health Care Equipment & Services	19.04
EV/FCFF, Industry
Health Care	22.87

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Humana Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	34,660)	55,740)	50,040)	38,505)	39,875)
Free cash flow to the firm (FCFF)²	3,482)	3,745)	1,191)	4,861)	4,713)
Valuation Ratio
EV/FCFF³	9.95	14.88	42.03	7.92	8.46
Benchmarks
EV/FCFF, Competitors⁴
Abbott Laboratories	36.51	23.24	23.47	36.94	33.05
Cigna Group	10.44	13.38	14.17	9.16	10.24
CVS Health Corp.	11.96	10.00	10.30	9.42	12.30
Danaher Corp.	36.34	25.74	28.25	30.66	37.11
Elevance Health Inc.	14.19	13.32	12.74	6.04	12.73
Intuitive Surgical Inc.	170.92	85.45	56.01	76.70	54.58
Medtronic PLC	26.54	20.32	33.84	21.43	22.07
UnitedHealth Group Inc.	17.59	19.30	22.21	15.82	17.51
EV/FCFF, Sector
Health Care Equipment & Services	19.66	18.05	20.42	15.95	17.63
EV/FCFF, Industry
Health Care	23.69	17.73	17.16	17.81	18.15

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 See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 34,660 ÷ 3,482 = 9.95

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Humana Inc. EV/FCFF ratio decreased from 2021 to 2022 and from 2022 to 2023.

Humana Inc. (NYSE:HUM)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical