Intrinsic value of WellCare Health Plans - WCG

Previous Close

$193.21

  Intrinsic Value

$3,166

stock screener

  Rating & Target

str. buy

+999%

Previous close

$193.21

 
Intrinsic value

$3,166

 
Up/down potential

+999%

 
Rating

str. buy

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

We calculate the intrinsic value of WCG 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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of WellCare Health Plans (WCG) stock.

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, %
  2.50
  22.90
  21.11
  19.50
  18.05
  16.74
  15.57
  14.51
  13.56
  12.71
  11.93
  11.24
  10.62
  10.06
  9.55
  9.09
  8.69
  8.32
  7.99
  7.69
  7.42
  7.18
  6.96
  6.76
  6.59
  6.43
  6.29
  6.16
  6.04
  5.94
  5.84
Revenue, $m
  0
  17,497
  21,191
  25,323
  29,894
  34,899
  40,333
  46,186
  52,450
  59,113
  66,169
  73,607
  81,422
  89,609
  98,167
  107,095
  116,397
  126,077
  136,145
  146,610
  157,485
  168,787
  180,532
  192,741
  205,436
  218,641
  232,383
  246,689
  261,592
  277,122
  293,314
Variable operating expenses, $m
 
  7,760
  9,390
  11,213
  13,230
  15,438
  17,836
  20,418
  23,182
  26,123
  29,235
  32,478
  35,927
  39,539
  43,315
  47,255
  51,359
  55,630
  60,072
  64,690
  69,489
  74,475
  79,658
  85,045
  90,646
  96,473
  102,536
  108,849
  115,425
  122,277
  129,422
Fixed operating expenses, $m
 
  7,764
  7,958
  8,157
  8,361
  8,570
  8,785
  9,004
  9,229
  9,460
  9,697
  9,939
  10,188
  10,442
  10,703
  10,971
  11,245
  11,526
  11,814
  12,110
  12,413
  12,723
  13,041
  13,367
  13,701
  14,044
  14,395
  14,755
  15,123
  15,502
  15,889
Total operating expenses, $m
  13,708
  15,524
  17,348
  19,370
  21,591
  24,008
  26,621
  29,422
  32,411
  35,583
  38,932
  42,417
  46,115
  49,981
  54,018
  58,226
  62,604
  67,156
  71,886
  76,800
  81,902
  87,198
  92,699
  98,412
  104,347
  110,517
  116,931
  123,604
  130,548
  137,779
  145,311
Operating income, $m
  530
  1,973
  3,843
  5,953
  8,303
  10,890
  13,712
  16,763
  20,038
  23,531
  27,236
  31,190
  35,308
  39,628
  44,148
  48,870
  53,793
  58,921
  64,258
  69,810
  75,584
  81,589
  87,833
  94,329
  101,088
  108,124
  115,451
  123,086
  131,044
  139,343
  148,003
EBITDA, $m
  618
  2,055
  3,933
  6,053
  8,414
  11,014
  13,849
  16,914
  20,204
  23,713
  27,436
  31,368
  35,505
  39,845
  44,386
  49,129
  54,074
  59,226
  64,587
  70,165
  75,965
  81,997
  88,270
  94,795
  101,585
  108,653
  116,014
  123,682
  131,676
  140,014
  148,713
Interest expense (income), $m
  57
  52
  101
  157
  220
  289
  365
  448
  537
  632
  733
  840
  952
  1,071
  1,195
  1,325
  1,460
  1,602
  1,748
  1,901
  2,060
  2,225
  2,396
  2,574
  2,760
  2,952
  3,152
  3,361
  3,578
  3,804
  4,039
Earnings before tax, $m
  530
  1,921
  3,742
  5,795
  8,083
  10,601
  13,347
  16,316
  19,502
  22,899
  26,504
  30,350
  34,355
  38,557
  42,953
  47,545
  52,332
  57,319
  62,510
  67,909
  73,524
  79,364
  85,437
  91,755
  98,329
  105,172
  112,299
  119,725
  127,466
  135,539
  143,964
Tax expense, $m
  288
  519
  1,010
  1,565
  2,182
  2,862
  3,604
  4,405
  5,265
  6,183
  7,156
  8,194
  9,276
  10,410
  11,597
  12,837
  14,130
  15,476
  16,878
  18,335
  19,852
  21,428
  23,068
  24,774
  26,549
  28,396
  30,321
  32,326
  34,416
  36,596
  38,870
Net income, $m
  242
  1,402
  2,731
  4,231
  5,900
  7,739
  9,743
  11,910
  14,236
  16,717
  19,348
  22,155
  25,079
  28,146
  31,356
  34,708
  38,203
  41,843
  45,632
  49,574
  53,673
  57,936
  62,369
  66,981
  71,780
  76,776
  81,978
  87,399
  93,050
  98,944
  105,094

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
  6,153
  7,561
  9,158
  10,943
  12,919
  15,082
  17,430
  19,959
  22,666
  25,546
  28,595
  31,809
  35,187
  38,725
  42,423
  46,281
  50,301
  54,485
  58,835
  63,358
  68,058
  72,942
  78,017
  83,293
  88,780
  94,486
  100,425
  106,607
  113,047
  119,759
  126,756
Adjusted assets (=assets-cash), $m
  6,153
  7,561
  9,158
  10,943
  12,919
  15,082
  17,430
  19,959
  22,666
  25,546
  28,595
  31,809
  35,187
  38,725
  42,423
  46,281
  50,301
  54,485
  58,835
  63,358
  68,058
  72,942
  78,017
  83,293
  88,780
  94,486
  100,425
  106,607
  113,047
  119,759
  126,756
Revenue / Adjusted assets
  0.000
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
  2.314
Average production assets, $m
  215
  262
  318
  380
  448
  523
  605
  693
  787
  887
  993
  1,104
  1,221
  1,344
  1,473
  1,606
  1,746
  1,891
  2,042
  2,199
  2,362
  2,532
  2,708
  2,891
  3,082
  3,280
  3,486
  3,700
  3,924
  4,157
  4,400
Working capital, $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 debt, $m
  998
  1,949
  3,026
  4,232
  5,565
  7,025
  8,610
  10,318
  12,145
  14,089
  16,147
  18,316
  20,596
  22,984
  25,481
  28,085
  30,798
  33,622
  36,559
  39,611
  42,784
  46,081
  49,507
  53,068
  56,771
  60,623
  64,632
  68,805
  73,152
  77,682
  82,406
Total liabilities, $m
  4,153
  5,104
  6,181
  7,387
  8,720
  10,180
  11,765
  13,473
  15,300
  17,244
  19,302
  21,471
  23,751
  26,139
  28,636
  31,240
  33,953
  36,777
  39,714
  42,766
  45,939
  49,236
  52,662
  56,223
  59,926
  63,778
  67,787
  71,960
  76,307
  80,837
  85,561
Total equity, $m
  2,000
  2,457
  2,976
  3,557
  4,199
  4,902
  5,665
  6,487
  7,367
  8,302
  9,293
  10,338
  11,436
  12,586
  13,787
  15,041
  16,348
  17,707
  19,121
  20,591
  22,119
  23,706
  25,356
  27,070
  28,853
  30,708
  32,638
  34,647
  36,740
  38,922
  41,196
Total liabilities and equity, $m
  6,153
  7,561
  9,157
  10,944
  12,919
  15,082
  17,430
  19,960
  22,667
  25,546
  28,595
  31,809
  35,187
  38,725
  42,423
  46,281
  50,301
  54,484
  58,835
  63,357
  68,058
  72,942
  78,018
  83,293
  88,779
  94,486
  100,425
  106,607
  113,047
  119,759
  126,757
Debt-to-equity ratio
  0.499
  0.790
  1.020
  1.190
  1.330
  1.430
  1.520
  1.590
  1.650
  1.700
  1.740
  1.770
  1.800
  1.830
  1.850
  1.870
  1.880
  1.900
  1.910
  1.920
  1.930
  1.940
  1.950
  1.960
  1.970
  1.970
  1.980
  1.990
  1.990
  2.000
  2.000
Adjusted equity ratio
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  242
  1,402
  2,731
  4,231
  5,900
  7,739
  9,743
  11,910
  14,236
  16,717
  19,348
  22,155
  25,079
  28,146
  31,356
  34,708
  38,203
  41,843
  45,632
  49,574
  53,673
  57,936
  62,369
  66,981
  71,780
  76,776
  81,978
  87,399
  93,050
  98,944
  105,094
Depreciation, amort., depletion, $m
  88
  82
  91
  101
  112
  124
  137
  151
  166
  182
  199
  178
  197
  217
  238
  259
  282
  305
  329
  355
  381
  408
  437
  466
  497
  529
  562
  597
  633
  670
  710
Funds from operations, $m
  1,103
  1,484
  2,822
  4,331
  6,012
  7,863
  9,880
  12,061
  14,402
  16,899
  19,547
  22,334
  25,276
  28,363
  31,593
  34,967
  38,484
  42,148
  45,961
  49,928
  54,054
  58,344
  62,806
  67,447
  72,277
  77,305
  82,541
  87,996
  93,683
  99,614
  105,803
Change in working capital, $m
  355
  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 operations, $m
  748
  1,484
  2,822
  4,331
  6,012
  7,863
  9,880
  12,061
  14,402
  16,899
  19,547
  22,334
  25,276
  28,363
  31,593
  34,967
  38,484
  42,148
  45,961
  49,928
  54,054
  58,344
  62,806
  67,447
  72,277
  77,305
  82,541
  87,996
  93,683
  99,614
  105,803
Maintenance CAPEX, $m
  0
  -35
  -42
  -51
  -61
  -72
  -84
  -98
  -112
  -127
  -143
  -160
  -178
  -197
  -217
  -238
  -259
  -282
  -305
  -329
  -355
  -381
  -408
  -437
  -466
  -497
  -529
  -562
  -597
  -633
  -670
New CAPEX, $m
  -105
  -48
  -55
  -62
  -69
  -75
  -82
  -88
  -94
  -100
  -106
  -112
  -117
  -123
  -128
  -134
  -140
  -145
  -151
  -157
  -163
  -170
  -176
  -183
  -190
  -198
  -206
  -215
  -224
  -233
  -243
Cash from investing activities, $m
  -27
  -83
  -97
  -113
  -130
  -147
  -166
  -186
  -206
  -227
  -249
  -272
  -295
  -320
  -345
  -372
  -399
  -427
  -456
  -486
  -518
  -551
  -584
  -620
  -656
  -695
  -735
  -777
  -821
  -866
  -913
Free cash flow, $m
  721
  1,402
  2,724
  4,218
  5,882
  7,715
  9,714
  11,876
  14,197
  16,672
  19,298
  22,062
  24,981
  28,043
  31,248
  34,595
  38,086
  41,721
  45,505
  49,442
  53,536
  57,793
  62,221
  66,827
  71,620
  76,610
  81,805
  87,219
  92,862
  98,748
  104,890
Issuance/(repayment) of debt, $m
  -203
  951
  1,077
  1,205
  1,333
  1,460
  1,585
  1,707
  1,827
  1,944
  2,058
  2,170
  2,280
  2,388
  2,496
  2,604
  2,713
  2,824
  2,937
  3,053
  3,172
  3,297
  3,426
  3,561
  3,703
  3,852
  4,008
  4,173
  4,347
  4,530
  4,723
Issuance/(repurchase) of shares, $m
  -7
  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  
  833
  951
  1,077
  1,205
  1,333
  1,460
  1,585
  1,707
  1,827
  1,944
  2,058
  2,170
  2,280
  2,388
  2,496
  2,604
  2,713
  2,824
  2,937
  3,053
  3,172
  3,297
  3,426
  3,561
  3,703
  3,852
  4,008
  4,173
  4,347
  4,530
  4,723
Total cash flow (excl. dividends), $m
  1,554
  2,353
  3,802
  5,423
  7,215
  9,175
  11,299
  13,584
  16,024
  18,616
  21,356
  24,232
  27,261
  30,432
  33,745
  37,200
  40,799
  44,545
  48,442
  52,495
  56,708
  61,090
  65,647
  70,389
  75,323
  80,462
  85,814
  91,392
  97,209
  103,278
  109,613
Retained Cash Flow (-), $m
  -272
  -457
  -519
  -580
  -642
  -703
  -763
  -822
  -880
  -936
  -991
  -1,045
  -1,098
  -1,150
  -1,202
  -1,254
  -1,306
  -1,360
  -1,414
  -1,470
  -1,527
  -1,587
  -1,650
  -1,715
  -1,783
  -1,855
  -1,930
  -2,009
  -2,093
  -2,181
  -2,274
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
 
  1,895
  3,283
  4,843
  6,573
  8,472
  10,536
  12,761
  15,144
  17,680
  20,365
  23,187
  26,163
  29,282
  32,543
  35,946
  39,492
  43,185
  47,028
  51,025
  55,181
  59,503
  63,998
  68,674
  73,540
  78,607
  83,884
  89,383
  95,116
  101,097
  107,339
Discount rate, %
 
  5.60
  5.88
  6.17
  6.48
  6.81
  7.15
  7.50
  7.88
  8.27
  8.69
  9.12
  9.58
  10.06
  10.56
  11.09
  11.64
  12.22
  12.84
  13.48
  14.15
  14.86
  15.60
  16.38
  17.20
  18.06
  18.96
  19.91
  20.91
  21.95
  23.05
PV of cash for distribution, $m
 
  1,795
  2,928
  4,046
  5,113
  6,095
  6,963
  7,690
  8,255
  8,645
  8,853
  8,876
  8,730
  8,425
  7,982
  7,424
  6,781
  6,080
  5,350
  4,619
  3,910
  3,244
  2,636
  2,096
  1,630
  1,238
  918
  664
  467
  320
  213
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

WellCare Health Plans, Inc. is a managed care company. The Company focuses on government-sponsored managed care services, primarily through Medicaid, Medicare Advantage (MA) and Medicare Prescription Drug Plans (PDPs), to families, children, seniors and individuals with medical needs. The Company operates through three segments: Medicaid Health Plans, Medicare Health Plans and Medicare PDPs. As of December 31, 2016, it served approximately 3.9 million members in 50 states and the District of Columbia. As of December 31, 2016, it operated Medicaid health plans in Arizona, Florida, Georgia, Hawaii, Illinois, Kentucky, Missouri, New Jersey, New York and South Carolina. As of December 31, 2016, it offered MA coordinated care plans (CCPs) in certain counties in Arizona, Arkansas, California, Connecticut, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Mississippi, New Jersey, New York, South Carolina, Tennessee and Texas.

FINANCIAL RATIOS  of  WellCare Health Plans (WCG)

Valuation Ratios
P/E Ratio 35.4
Price to Sales 0.6
Price to Book 4.3
Price to Tangible Book
Price to Cash Flow 11.4
Price to Free Cash Flow 13.3
Growth Rates
Sales Growth Rate 2.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -23.4%
Cap. Spend. - 3 Yr. Gr. Rate 11.1%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 49.9%
Total Debt to Equity 49.9%
Interest Coverage 10
Management Effectiveness
Return On Assets 4.7%
Ret/ On Assets - 3 Yr. Avg. 3.2%
Return On Total Capital 8.2%
Ret/ On T. Cap. - 3 Yr. Avg. 5.1%
Return On Equity 13%
Return On Equity - 3 Yr. Avg. 8.1%
Asset Turnover 2.5
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 4.7%
EBITDA Margin - 3 Yr. Avg. 3.4%
Operating Margin 3.7%
Oper. Margin - 3 Yr. Avg. 2.5%
Pre-Tax Margin 3.7%
Pre-Tax Margin - 3 Yr. Avg. 2.5%
Net Profit Margin 1.7%
Net Profit Margin - 3 Yr. Avg. 1%
Effective Tax Rate 54.3%
Eff/ Tax Rate - 3 Yr. Avg. 61%
Payout Ratio 0%

WCG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WCG stock intrinsic value calculation we used $14237 million for the last fiscal year's total revenue generated by WellCare Health Plans. The default revenue input number comes from 2016 income statement of WellCare Health Plans. 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 WCG stock valuation model: a) initial revenue growth rate of 22.9% 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 5.6%, whose default value for WCG is calculated based on our internal credit rating of WellCare Health Plans, 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 WellCare Health Plans.
    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 WCG stock the variable cost ratio is equal to 44.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $7575 million in the base year in the intrinsic value calculation for WCG 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 5.2% for WellCare Health Plans.

Corporate tax rate of 27% is the nominal tax rate for WellCare Health Plans. 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 WCG 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 WCG are equal to 1.5%.

Life of production assets of 6.2 years is the average useful life of capital assets used in WellCare Health Plans 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 WCG is equal to 0%. 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 - $2000 million for WellCare Health Plans - 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 44.951 million for WellCare Health Plans 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 WellCare Health Plans at the current share price and the inputted number of shares is $8.7 billion.

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COMPANY NEWS

▶ Staywell Commits $15,000 to Support the March of Dimes   [Feb-14-18 08:30AM  PR Newswire]
▶ Insurers Signal Medicare Advantage Buyouts Ahead   [Feb-12-18 08:00AM  Forbes]
▶ WellCare Health Plans, Inc. to Host Earnings Call   [Feb-06-18 07:30AM  ACCESSWIRE]
▶ WellCare beats Street 4Q forecasts   [06:25AM  Associated Press]
▶ See where these 5 Tampa Bay companies rank in Fortunes most admired list   [Jan-19-18 11:20AM  American City Business Journals]
▶ Staywell Sponsors Florida's Children's Week   [Jan-17-18 08:30AM  PR Newswire]
▶ 3 Top Health Insurance Stocks to Buy   [Dec-24-17 08:15AM  Motley Fool]
▶ WellCare Issues 2018 Annual Guidance   [07:00AM  PR Newswire]
▶ Composite Rating For Wellcare Health Plans Jumps To 96   [03:00AM  Investor's Business Daily]
▶ Judge sentences former WellCare top lawyer on false statements charge   [Nov-22-17 02:40PM  American City Business Journals]
▶ Harmony Health Plan Names Patrick Burke COO   [Nov-20-17 08:30AM  PR Newswire]
▶ New Strong Buy Stocks for November 6th   [Nov-06-17 08:51AM  Zacks]
▶ No tricks, all treats for WellCare, MarineMax stocks on Halloween   [08:33AM  American City Business Journals]
▶ Heres why health care premiums could jump 30%   [Oct-31-17 12:40PM  Yahoo Finance Video]
▶ WellCare tops 3Q profit forecasts   [05:57AM  Associated Press]
▶ Nasdaq Leaps 2.2% To Record High As Technology Darlings Rally   [Oct-27-17 04:18PM  Investor's Business Daily]
▶ Why Kiran Patel is selling his health insurance companies to Anthem   [07:15AM  American City Business Journals]
▶ Trump to unwind Obamacare with new exec. order   [Oct-12-17 01:18PM  Yahoo Finance Video]
Financial statements of WCG
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