HUMHUMANA INC

$401.54Data updated: 2026-09-04 (ET)

SScore MMoat DDCF

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DCF CalculatorHUMANA INC

Inputs

Quick Fill (Ticker)

HUMANA INC · $401.54

Annual Free Cash Flow (B$)· loaded from HUM

Growth Rate (%) Years 1–3

📜 Buffett on Growth

“Compound interest is the eighth wonder of the world. He who understands it, earns it.”

— 1965 Letter to Shareholders · Compounding

Discount Rate (%) Buffett uses 10%

📜 Buffett on Discount Rate

“Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life. We use the risk-free rate as our discount rate.”

— 1992 Letter to Shareholders · Intrinsic Value

Terminal Growth (%) Typically 2.5%

📜 Buffett on Long-term Holding

“Our favorite holding period is forever. When we own portions of outstanding businesses with outstanding managements, our preferred holding period is forever.”

— 1988 Letter to Shareholders · Long-term Holding

💡 Buffett Standard: Discount rate 10% = risk-free rate (treasury bonds)
Terminal growth 2.5% ≈ long-term nominal GDP growth

Results

Intrinsic Value per ShareYour Parameters

N/A

Based on your DCF parameters · Standard $-3.3B · Floor(OE) $2.0B

N/A · see total intrinsic value below

Total Intrinsic Value

$-3.3B

Enterprise value − net debt

Margin of Safety· price $401.54

N/A

Assumed Price$401.54

Sum of Discounted FCF$9.8B

Discounted Terminal Value$24.9B

Historical FCF Trend (B$)

FCF Forecast (B USD)

FCF Forecast

Discounted Value

Year-by-Year FCF Detail

Year	FCF (B$)	Discounted Value (B$)
Year 1	$2.2B	$2.0B
Year 2	$2.4B	$2.0B
Year 3	$2.7B	$2.0B
Year 4	$2.9B	$2.0B
Year 5	$2.9B	$1.8B
Terminal Value	—	$24.9B
Total	—	$34.7B

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Buffett's Valuation Wisdom

References from Buffett's 60 years of letters

“Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life. We use the risk-free rate as our discount rate.”

— 1992 Letter to Shareholders · Intrinsic Value

“Compound interest is the eighth wonder of the world. He who understands it, earns it.”

— 1965 Letter to Shareholders · Compounding

“Our favorite holding period is forever. When we own portions of outstanding businesses with outstanding managements, our preferred holding period is forever.”

— 1988 Letter to Shareholders · Long-term Holding

“Intrinsic value is an estimate rather than a precise figure. Two people looking at the same set of facts will almost inevitably come up with slightly different intrinsic value figures.”

— 1969 Letter to Shareholders · Intrinsic Value

“The three most important words in investing are: margin of safety. You don't try to buy businesses worth $100 million for $80 million.”

— 1969 Letter to Shareholders · Margin of Safety

Related Concepts

Intrinsic Value Margin of Safety Owner Earnings Compounding

DCF Formula

Intrinsic Value = Σ FCFₜ/(1+r)ᵗ + TV/(1+r)ⁿ

r = discount rate
TV = terminal value
n = forecast period (5 years)

Owner Earnings = Net Income + D&A − CapEx

Simplified IV = OE × (8.5 + 2g)

→ Learn Intrinsic Value Concept

⚠️ Disclaimer

DCF is a valuation tool, not exact science. Intrinsic value is highly sensitive to assumptions. Do not use results as sole basis for investment.

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HUM · HUMANA INC

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Inputs

Quick Fill (Ticker)

HUMANA INC · $401.54

Annual Free Cash Flow (B$)· loaded from HUM

Growth Rate (%) Years 1–3

📜 Buffett on Growth

“Compound interest is the eighth wonder of the world. He who understands it, earns it.”

— 1965 Letter to Shareholders · Compounding

Discount Rate (%) Buffett uses 10%

📜 Buffett on Discount Rate

“Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life. We use the risk-free rate as our discount rate.”

— 1992 Letter to Shareholders · Intrinsic Value

Terminal Growth (%) Typically 2.5%

📜 Buffett on Long-term Holding

“Our favorite holding period is forever. When we own portions of outstanding businesses with outstanding managements, our preferred holding period is forever.”

— 1988 Letter to Shareholders · Long-term Holding

💡 Buffett Standard: Discount rate 10% = risk-free rate (treasury bonds)
Terminal growth 2.5% ≈ long-term nominal GDP growth

Results

Intrinsic Value per ShareYour Parameters

N/A

Based on your DCF parameters · Standard $-3.3B · Floor(OE) $2.0B

N/A · see total intrinsic value below

Total Intrinsic Value

$-3.3B

Enterprise value − net debt

Margin of Safety· price $401.54

N/A

Assumed Price$401.54

Sum of Discounted FCF$9.8B

Discounted Terminal Value$24.9B

Year

FCF (B$)

Discounted Value (B$)

Year 1

$2.2B

$2.0B

Year 2

$2.4B

$2.0B

Year 3

$2.7B

$2.0B

Year 4

$2.9B

$2.0B

Year 5

$2.9B

$1.8B

Terminal Value

—

$24.9B

Total

—

$34.7B