Intrinsic value of Anthem - ANTM

Previous Close

$249.65

  Intrinsic Value

$232.84

stock screener

  Rating & Target

hold

-7%

Previous close

$249.65

 
Intrinsic value

$232.84

 
Up/down potential

-7%

 
Rating

hold

Our model is not good at valuating stocks of financial companies, such as ANTM.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ANTM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.24
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
  4.98
  4.98
  4.99
Revenue, $m
  0
  88,972
  93,180
  97,613
  102,280
  107,193
  112,363
  117,802
  123,523
  129,539
  135,866
  142,517
  149,508
  156,857
  164,580
  172,696
  181,225
  190,185
  199,599
  209,489
  219,879
  230,793
  242,256
  254,298
  266,945
  280,228
  294,179
  308,831
  324,219
  340,379
  357,350
Variable operating expenses, $m
 
  82,928
  86,768
  90,812
  95,070
  99,552
  104,268
  109,231
  114,450
  119,939
  125,711
  130,023
  136,402
  143,106
  150,152
  157,557
  165,337
  173,512
  182,101
  191,124
  200,603
  210,560
  221,019
  232,005
  243,543
  255,662
  268,390
  281,758
  295,796
  310,540
  326,023
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  79,700
  82,928
  86,768
  90,812
  95,070
  99,552
  104,268
  109,231
  114,450
  119,939
  125,711
  130,023
  136,402
  143,106
  150,152
  157,557
  165,337
  173,512
  182,101
  191,124
  200,603
  210,560
  221,019
  232,005
  243,543
  255,662
  268,390
  281,758
  295,796
  310,540
  326,023
Operating income, $m
  5,278
  6,044
  6,413
  6,801
  7,210
  7,641
  8,094
  8,571
  9,073
  9,600
  10,155
  12,494
  13,107
  13,751
  14,428
  15,139
  15,887
  16,673
  17,498
  18,365
  19,276
  20,233
  21,237
  22,293
  23,402
  24,566
  25,789
  27,074
  28,423
  29,839
  31,327
EBITDA, $m
  6,190
  8,137
  8,522
  8,927
  9,354
  9,804
  10,276
  10,774
  11,297
  11,847
  12,426
  13,034
  13,674
  14,346
  15,052
  15,794
  16,574
  17,394
  18,255
  19,159
  20,110
  21,108
  22,156
  23,257
  24,414
  25,629
  26,905
  28,245
  29,652
  31,130
  32,682
Interest expense (income), $m
  595
  598
  668
  743
  822
  906
  993
  1,086
  1,183
  1,285
  1,393
  1,506
  1,624
  1,749
  1,881
  2,019
  2,164
  2,316
  2,476
  2,644
  2,821
  3,006
  3,201
  3,406
  3,621
  3,847
  4,085
  4,334
  4,596
  4,871
  5,159
Earnings before tax, $m
  4,555
  5,446
  5,745
  6,058
  6,388
  6,735
  7,101
  7,485
  7,890
  8,315
  8,762
  10,988
  11,482
  12,002
  12,547
  13,121
  13,724
  14,357
  15,022
  15,721
  16,455
  17,226
  18,036
  18,887
  19,780
  20,719
  21,705
  22,740
  23,827
  24,969
  26,168
Tax expense, $m
  2,085
  1,470
  1,551
  1,636
  1,725
  1,819
  1,917
  2,021
  2,130
  2,245
  2,366
  2,967
  3,100
  3,240
  3,388
  3,543
  3,705
  3,876
  4,056
  4,245
  4,443
  4,651
  4,870
  5,099
  5,341
  5,594
  5,860
  6,140
  6,433
  6,742
  7,065
Net income, $m
  2,470
  3,976
  4,194
  4,422
  4,663
  4,917
  5,184
  5,464
  5,759
  6,070
  6,396
  8,021
  8,382
  8,761
  9,160
  9,578
  10,018
  10,480
  10,966
  11,476
  12,012
  12,575
  13,166
  13,787
  14,440
  15,125
  15,844
  16,600
  17,394
  18,227
  19,103

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  65,083
  68,126
  71,348
  74,742
  78,316
  82,077
  86,036
  90,200
  94,581
  99,188
  104,032
  109,125
  114,478
  120,105
  126,019
  132,233
  138,763
  145,624
  152,832
  160,405
  168,361
  176,717
  185,495
  194,715
  204,399
  214,570
  225,252
  236,471
  248,253
  260,627
  273,622
Adjusted assets (=assets-cash), $m
  65,083
  68,126
  71,348
  74,742
  78,316
  82,077
  86,036
  90,200
  94,581
  99,188
  104,032
  109,125
  114,478
  120,105
  126,019
  132,233
  138,763
  145,624
  152,832
  160,405
  168,361
  176,717
  185,495
  194,715
  204,399
  214,570
  225,252
  236,471
  248,253
  260,627
  273,622
Revenue / Adjusted assets
  0.000
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
  1.306
Average production assets, $m
  9,615
  10,054
  10,529
  11,030
  11,558
  12,113
  12,697
  13,312
  13,958
  14,638
  15,353
  16,104
  16,894
  17,725
  18,598
  19,515
  20,478
  21,491
  22,555
  23,672
  24,846
  26,080
  27,375
  28,736
  30,165
  31,666
  33,242
  34,898
  36,637
  38,463
  40,381
Working capital, $m
  0
  1,424
  1,491
  1,562
  1,636
  1,715
  1,798
  1,885
  1,976
  2,073
  2,174
  2,280
  2,392
  2,510
  2,633
  2,763
  2,900
  3,043
  3,194
  3,352
  3,518
  3,693
  3,876
  4,069
  4,271
  4,484
  4,707
  4,941
  5,188
  5,446
  5,718
Total debt, $m
  15,727
  17,573
  19,552
  21,636
  23,830
  26,139
  28,570
  31,127
  33,817
  36,645
  39,620
  42,747
  46,034
  49,488
  53,119
  56,935
  60,945
  65,157
  69,583
  74,233
  79,117
  84,248
  89,638
  95,299
  101,245
  107,490
  114,049
  120,937
  128,172
  135,769
  143,748
Total liabilities, $m
  39,983
  41,829
  43,808
  45,892
  48,086
  50,395
  52,826
  55,383
  58,073
  60,901
  63,876
  67,003
  70,290
  73,744
  77,375
  81,191
  85,201
  89,413
  93,839
  98,489
  103,373
  108,504
  113,894
  119,555
  125,501
  131,746
  138,305
  145,193
  152,428
  160,025
  168,004
Total equity, $m
  25,100
  26,296
  27,540
  28,850
  30,230
  31,682
  33,210
  34,817
  36,508
  38,286
  40,156
  42,122
  44,189
  46,361
  48,643
  51,042
  53,563
  56,211
  58,993
  61,916
  64,987
  68,213
  71,601
  75,160
  78,898
  82,824
  86,947
  91,278
  95,826
  100,602
  105,618
Total liabilities and equity, $m
  65,083
  68,125
  71,348
  74,742
  78,316
  82,077
  86,036
  90,200
  94,581
  99,187
  104,032
  109,125
  114,479
  120,105
  126,018
  132,233
  138,764
  145,624
  152,832
  160,405
  168,360
  176,717
  185,495
  194,715
  204,399
  214,570
  225,252
  236,471
  248,254
  260,627
  273,622
Debt-to-equity ratio
  0.627
  0.670
  0.710
  0.750
  0.790
  0.830
  0.860
  0.890
  0.930
  0.960
  0.990
  1.010
  1.040
  1.070
  1.090
  1.120
  1.140
  1.160
  1.180
  1.200
  1.220
  1.240
  1.250
  1.270
  1.280
  1.300
  1.310
  1.320
  1.340
  1.350
  1.360
Adjusted equity ratio
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386
  0.386

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,470
  3,976
  4,194
  4,422
  4,663
  4,917
  5,184
  5,464
  5,759
  6,070
  6,396
  8,021
  8,382
  8,761
  9,160
  9,578
  10,018
  10,480
  10,966
  11,476
  12,012
  12,575
  13,166
  13,787
  14,440
  15,125
  15,844
  16,600
  17,394
  18,227
  19,103
Depreciation, amort., depletion, $m
  912
  2,093
  2,109
  2,126
  2,144
  2,163
  2,182
  2,203
  2,224
  2,247
  2,271
  540
  567
  595
  624
  655
  687
  721
  757
  794
  834
  875
  919
  964
  1,012
  1,063
  1,116
  1,171
  1,229
  1,291
  1,355
Funds from operations, $m
  2,630
  6,069
  6,303
  6,549
  6,807
  7,079
  7,366
  7,667
  7,984
  8,317
  8,668
  8,562
  8,949
  9,356
  9,784
  10,233
  10,705
  11,202
  11,723
  12,271
  12,846
  13,450
  14,085
  14,752
  15,452
  16,187
  16,960
  17,771
  18,623
  19,518
  20,458
Change in working capital, $m
  -575
  64
  67
  71
  75
  79
  83
  87
  92
  96
  101
  106
  112
  118
  124
  130
  136
  143
  151
  158
  166
  175
  183
  193
  202
  213
  223
  234
  246
  259
  272
Cash from operations, $m
  3,205
  6,005
  6,236
  6,478
  6,733
  7,001
  7,283
  7,580
  7,892
  8,221
  8,566
  8,455
  8,837
  9,238
  9,660
  10,103
  10,569
  11,058
  11,572
  12,112
  12,680
  13,276
  13,902
  14,559
  15,250
  15,975
  16,737
  17,537
  18,377
  19,259
  20,186
Maintenance CAPEX, $m
  0
  -323
  -337
  -353
  -370
  -388
  -406
  -426
  -447
  -468
  -491
  -515
  -540
  -567
  -595
  -624
  -655
  -687
  -721
  -757
  -794
  -834
  -875
  -919
  -964
  -1,012
  -1,063
  -1,116
  -1,171
  -1,229
  -1,291
New CAPEX, $m
  -584
  -439
  -476
  -501
  -527
  -555
  -584
  -615
  -646
  -680
  -715
  -752
  -790
  -830
  -873
  -917
  -964
  -1,013
  -1,064
  -1,118
  -1,174
  -1,233
  -1,295
  -1,361
  -1,429
  -1,501
  -1,576
  -1,656
  -1,739
  -1,826
  -1,918
Cash from investing activities, $m
  -514
  -762
  -813
  -854
  -897
  -943
  -990
  -1,041
  -1,093
  -1,148
  -1,206
  -1,267
  -1,330
  -1,397
  -1,468
  -1,541
  -1,619
  -1,700
  -1,785
  -1,875
  -1,968
  -2,067
  -2,170
  -2,280
  -2,393
  -2,513
  -2,639
  -2,772
  -2,910
  -3,055
  -3,209
Free cash flow, $m
  2,691
  5,243
  5,423
  5,624
  5,835
  6,058
  6,292
  6,539
  6,799
  7,073
  7,360
  7,189
  7,507
  7,841
  8,193
  8,562
  8,950
  9,359
  9,787
  10,238
  10,711
  11,209
  11,731
  12,280
  12,856
  13,462
  14,098
  14,766
  15,467
  16,204
  16,978
Issuance/(repayment) of debt, $m
  0
  1,846
  1,979
  2,084
  2,194
  2,310
  2,430
  2,557
  2,690
  2,829
  2,974
  3,127
  3,287
  3,455
  3,631
  3,816
  4,009
  4,213
  4,426
  4,650
  4,885
  5,131
  5,390
  5,661
  5,946
  6,245
  6,559
  6,888
  7,234
  7,597
  7,979
Issuance/(repurchase) of shares, $m
  119
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -49
  1,846
  1,979
  2,084
  2,194
  2,310
  2,430
  2,557
  2,690
  2,829
  2,974
  3,127
  3,287
  3,455
  3,631
  3,816
  4,009
  4,213
  4,426
  4,650
  4,885
  5,131
  5,390
  5,661
  5,946
  6,245
  6,559
  6,888
  7,234
  7,597
  7,979
Total cash flow (excl. dividends), $m
  2,646
  7,089
  7,401
  7,708
  8,029
  8,368
  8,723
  9,096
  9,489
  9,901
  10,335
  10,316
  10,794
  11,296
  11,824
  12,378
  12,960
  13,571
  14,213
  14,888
  15,596
  16,339
  17,121
  17,941
  18,802
  19,707
  20,657
  21,654
  22,701
  23,801
  24,956
Retained Cash Flow (-), $m
  -2,056
  -1,196
  -1,244
  -1,310
  -1,379
  -1,452
  -1,528
  -1,608
  -1,691
  -1,778
  -1,870
  -1,966
  -2,066
  -2,172
  -2,283
  -2,399
  -2,521
  -2,648
  -2,782
  -2,923
  -3,071
  -3,226
  -3,388
  -3,559
  -3,738
  -3,926
  -4,123
  -4,331
  -4,548
  -4,776
  -5,016
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  5,893
  6,158
  6,397
  6,650
  6,916
  7,195
  7,489
  7,798
  8,123
  8,465
  8,350
  8,727
  9,124
  9,541
  9,979
  10,439
  10,923
  11,431
  11,964
  12,525
  13,114
  13,732
  14,382
  15,064
  15,781
  16,533
  17,324
  18,154
  19,025
  19,940
Discount rate, %
 
  6.80
  7.14
  7.50
  7.87
  8.27
  8.68
  9.11
  9.57
  10.05
  10.55
  11.08
  11.63
  12.21
  12.82
  13.46
  14.14
  14.84
  15.59
  16.37
  17.18
  18.04
  18.94
  19.89
  20.89
  21.93
  23.03
  24.18
  25.39
  26.66
  27.99
PV of cash for distribution, $m
 
  5,518
  5,364
  5,150
  4,911
  4,649
  4,367
  4,067
  3,754
  3,432
  3,105
  2,629
  2,331
  2,040
  1,762
  1,501
  1,259
  1,039
  843
  672
  525
  403
  302
  222
  159
  111
  76
  50
  32
  20
  12
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Anthem, Inc. is a health benefits company. The Company operates through three segments: Commercial and Specialty Business, Government Business and Other. It offers a spectrum of network-based managed care plans to large and small employer, individual, Medicaid and Medicare markets. Its managed care plans include preferred provider organizations; health maintenance organizations; point-of-service plans; indemnity plans and other hybrid plans, including consumer-driven health plans; and hospital only and limited benefit products. It also provides an array of managed care services to self-funded customers, including claims processing, underwriting, stop loss insurance, actuarial services, provider network access, medical cost management, disease management, wellness programs and other administrative services. It provides an array of specialty and other insurance products and services, such as dental, vision, life and disability insurance benefits and radiology benefit management.

FINANCIAL RATIOS  of  Anthem (ANTM)

Valuation Ratios
P/E Ratio 26.7
Price to Sales 0.8
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 20.5
Price to Free Cash Flow 25.1
Growth Rates
Sales Growth Rate 7.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -8.5%
Cap. Spend. - 3 Yr. Gr. Rate -2%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 57.2%
Total Debt to Equity 62.7%
Interest Coverage 9
Management Effectiveness
Return On Assets 4.4%
Ret/ On Assets - 3 Yr. Avg. 4.6%
Return On Total Capital 6.2%
Ret/ On T. Cap. - 3 Yr. Avg. 6.4%
Return On Equity 10.3%
Return On Equity - 3 Yr. Avg. 10.5%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 7.1%
EBITDA Margin - 3 Yr. Avg. 7.6%
Operating Margin 6.2%
Oper. Margin - 3 Yr. Avg. 6.5%
Pre-Tax Margin 5.4%
Pre-Tax Margin - 3 Yr. Avg. 5.7%
Net Profit Margin 2.9%
Net Profit Margin - 3 Yr. Avg. 3.2%
Effective Tax Rate 45.8%
Eff/ Tax Rate - 3 Yr. Avg. 44%
Payout Ratio 27.7%

ANTM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ANTM stock intrinsic value calculation we used $84978 million for the last fiscal year's total revenue generated by Anthem. The default revenue input number comes from 2016 income statement of Anthem. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ANTM stock valuation model: a) initial revenue growth rate of 4.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.8%, whose default value for ANTM is calculated based on our internal credit rating of Anthem, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Anthem.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ANTM stock the variable cost ratio is equal to 93.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for ANTM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.8% for Anthem.

Corporate tax rate of 27% is the nominal tax rate for Anthem. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ANTM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ANTM are equal to 11.3%.

Life of production assets of 29.8 years is the average useful life of capital assets used in Anthem operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ANTM is equal to 1.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $25100 million for Anthem - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 259.055 million for Anthem is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Anthem at the current share price and the inputted number of shares is $64.7 billion.

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COMPANY NEWS

▶ Insys Has Legal Issues Galore   [07:37AM  Market Realist]
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▶ ObamaCare Isn't Dead Yet: Enrollment Tops Soft Expectations   [Dec-21-17 05:15PM  Investor's Business Daily]
▶ ETFs with exposure to Anthem, Inc. : December 19, 2017   [Dec-19-17 12:16PM  Capital Cube]
▶ 7 Quality Stocks With High Business Predictability Ratings   [Dec-14-17 03:21PM  GuruFocus.com]
▶ Anthems Board Welcomes Antonio Neri as New Director   [Dec-07-17 04:30PM  Business Wire]
▶ CVS-Aetna Deal Could Start a Health Takeover Run   [Dec-04-17 05:42PM  Bloomberg]
▶ CVS Prepares for the Amazon Invasion   [Dec-03-17 03:02PM  TheStreet.com]
▶ ETFs with exposure to Anthem, Inc. : November 30, 2017   [Nov-30-17 01:20PM  Capital Cube]
▶ Trump may eliminate health provision in tax bill   [11:40AM  Yahoo Finance Video]
▶ ETFs with exposure to Anthem, Inc. : November 17, 2017   [Nov-17-17 11:20AM  Capital Cube]
▶ Obamacare enrollment soars in first 11 days   [Nov-16-17 11:52AM  Yahoo Finance Video]
▶ House prepares for crucial tax bill vote   [08:40AM  Yahoo Finance]
▶ GOP tax plan takes aim at Obamacare   [11:10AM  Yahoo Finance Video]
▶ GOP sets sights on crucial Obamacare mandate   [09:15AM  Yahoo Finance]
▶ Sarepta: Payers Gonna Pay?   [09:35AM  Barrons.com]
▶ ETFs with exposure to Anthem, Inc. : November 7, 2017   [Nov-07-17 09:38AM  Capital Cube]
▶ Humana Is a Healthy Stock but Lags Rivals   [09:25AM  Investopedia]
▶ Anthem Confirms Joseph Swedish to Step Down as CEO   [12:30AM  The Wall Street Journal]
▶ Anthem picks former UnitedHealth executive to become CEO   [Nov-06-17 04:14PM  Associated Press]
▶ Anthem Confirms Swedish to Step Down as CEO   [03:15PM  The Wall Street Journal]
▶ Anthem CEO Joseph Swedish to Step Down   [Nov-03-17 10:59PM  The Wall Street Journal]
▶ [$$] Anthem Readies CEO Succession   [09:34PM  The Wall Street Journal]
▶ Anthem CEO Joseph Swedish to Step Down   [06:37PM  The Wall Street Journal]
▶ Anthem Announces Appearance at Upcoming Conference   [Oct-31-17 04:05PM  Business Wire]
▶ Heres why health care premiums could jump 30%   [12:40PM  Yahoo Finance Video]
▶ [$$] CVS Bid for Aetna Followed a Long Hunt   [Oct-28-17 12:29AM  The Wall Street Journal]
▶ [$$] CVS Bid for Aetna Followed a Long Hunt   [Oct-27-17 07:51PM  The Wall Street Journal]
▶ CVS, Aetna Deal Could Spark 'Merger Mania'   [12:49PM  The Wall Street Journal]
▶ Trump wins major battle in hopes to dismantle Obamacare   [Oct-26-17 12:24PM  Yahoo Finance Video]
Financial statements of ANTM
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