Is Centene Corp. overvalued or undervalued?

As of 25 July 2025, the valuation grade for Centene Corp. has moved from very attractive to fair, indicating a shift in its perceived value. The company appears to be overvalued, given its P/E ratio of 8, which is significantly lower than its peer Humana, Inc., which has a P/E of 37.35, and the industry average is not provided. Additionally, Centene's EV to EBITDA stands at 23.58, while its PEG ratio is a favorable 0.53, suggesting potential growth relative to its price.
In comparison to its peers, Centene Corp. is positioned as fair, while Humana, Inc. is deemed very expensive, highlighting a stark contrast in valuation metrics. The stock has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -46.90% compared to the index's 12.22%, reinforcing the notion that Centene may be overvalued in the current market context.