Latest Ratios: P/E Ratio 37.8x · EV/EBITDA 23.4x · ROE 7.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $44.7B | $30.9B | $30.7B | $57.0B | $65.1B | $60.0B | $54.6B | $49.4B | $39.6B | $36.1B | $30.8B |
| Enterprise Value | $53.4B | $39.7B | $40.7B | $64.5B | $71.8B | $69.9B | $57.0B | $51.4B | $43.4B | $37.0B | $31.0B |
| P/E Ratio → | 37.80 | 26.03 | 25.42 | 22.89 | 23.20 | 20.46 | 16.21 | 18.23 | 23.56 | 14.76 | 50.13 |
| P/S Ratio | 0.34 | 0.24 | 0.26 | 0.54 | 0.70 | 0.72 | 0.71 | 0.76 | 0.70 | 0.67 | 0.57 |
| P/B Ratio | 2.53 | 1.74 | 1.86 | 3.49 | 4.24 | 3.73 | 3.98 | 4.10 | 3.90 | 3.67 | 2.88 |
| P/FCF | 119.08 | 82.53 | 12.83 | 19.14 | 18.87 | 65.24 | 11.67 | 10.86 | 25.40 | 10.25 | 21.85 |
| P/OCF | 48.48 | 33.60 | 10.34 | 14.31 | 14.19 | 26.53 | 9.68 | 9.35 | 18.25 | 8.92 | 15.90 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.31 | 0.35 | 0.61 | 0.77 | 0.84 | 0.74 | 0.79 | 0.76 | 0.69 | 0.57 |
| EV / EBITDA | 23.45 | 17.43 | 15.69 | 15.23 | 16.28 | 16.91 | 10.78 | 12.72 | 16.63 | 9.71 | 14.06 |
| EV / EBIT | 36.75 | 19.04 | 17.80 | 16.93 | 18.11 | 18.65 | 11.51 | 13.86 | 18.92 | 7.79 | 14.06 |
| EV / FCF | — | 105.82 | 17.02 | 21.68 | 20.81 | 75.93 | 12.20 | 11.31 | 27.79 | 10.49 | 22.01 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 14.5% | 14.5% | 14.6% | 17.0% | 18.5% | 17.3% | 20.3% | 17.2% | 19.7% | 13.2% | 14.3% |
| Operating Margin | 1.1% | 1.1% | 1.4% | 3.1% | 3.8% | 4.1% | 6.1% | 5.3% | 3.6% | 6.2% | 3.2% |
| Net Profit Margin | 0.9% | 0.9% | 1.0% | 2.3% | 3.0% | 3.5% | 4.4% | 4.2% | 3.0% | 4.6% | 1.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.0% | 7.0% | 7.4% | 15.7% | 17.8% | 19.7% | 26.1% | 24.4% | 16.8% | 23.9% | 5.8% |
| ROA | 2.5% | 2.5% | 2.6% | 5.5% | 6.3% | 7.3% | 10.5% | 10.0% | 6.5% | 9.3% | 2.4% |
| ROIC | 4.1% | 4.1% | 4.8% | 10.8% | 11.1% | 12.2% | 23.1% | 18.6% | 12.6% | 23.1% | 11.5% |
| ROCE | 4.0% | 4.0% | 4.6% | 9.9% | 10.7% | 11.3% | 19.3% | 16.9% | 10.1% | 15.6% | 8.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.73 | 0.73 | 0.75 | 0.75 | 0.76 | 0.82 | 0.52 | 0.51 | 0.60 | 0.50 | 0.38 |
| Debt / EBITDA | 5.68 | 5.68 | 4.72 | 2.90 | 2.67 | 3.20 | 1.35 | 1.51 | 2.33 | 1.29 | 1.85 |
| Net Debt / Equity | — | 0.49 | 0.61 | 0.46 | 0.44 | 0.61 | 0.18 | 0.17 | 0.37 | 0.09 | 0.02 |
| Net Debt / EBITDA | 3.84 | 3.84 | 3.87 | 1.79 | 1.52 | 2.38 | 0.47 | 0.51 | 1.43 | 0.23 | 0.10 |
| Debt / FCF | — | 23.30 | 4.20 | 2.54 | 1.94 | 10.69 | 0.53 | 0.45 | 2.39 | 0.25 | 0.15 |
| Interest Coverage | 3.30 | 3.30 | 3.47 | 7.73 | 9.89 | 11.49 | 17.52 | 15.34 | 10.51 | 19.62 | 11.67 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.72 | 0.72 | 0.44 | 0.56 | 0.58 | 0.50 | 0.65 | 0.75 | 0.51 | 1.12 | 0.86 |
| Quick Ratio | 0.72 | 0.72 | 0.44 | 0.56 | 0.58 | 0.50 | 0.65 | 0.75 | 0.51 | 1.12 | 0.86 |
| Cash Ratio | 0.41 | 0.41 | 0.20 | 0.39 | 0.44 | 0.32 | 0.52 | 0.60 | 0.36 | 0.92 | 0.71 |
| Asset Turnover | — | 2.66 | 2.54 | 2.27 | 2.13 | 1.87 | 2.20 | 2.24 | 2.25 | 2.02 | 2.11 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.0% | 1.4% | 1.4% | 0.8% | 0.6% | 0.6% | 0.6% | 0.6% | 0.7% | 0.6% | 0.6% |
| Payout Ratio | 36.2% | 36.2% | 35.7% | 17.3% | 14.0% | 12.1% | 9.6% | 10.7% | 15.7% | 9.0% | 28.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 3.8% | 3.9% | 4.4% | 4.3% | 4.9% | 6.2% | 5.5% | 4.2% | 6.8% | 2.0% |
| FCF Yield | 0.8% | 1.2% | 7.8% | 5.2% | 5.3% | 1.5% | 8.6% | 9.2% | 3.9% | 9.8% | 4.6% |
| Buyback Yield | 0.3% | 0.5% | 2.7% | 2.8% | 3.2% | 0.1% | 3.3% | 2.2% | 2.7% | 9.3% | 0.3% |
| Total Shareholder Yield | 1.3% | 1.9% | 4.1% | 3.5% | 3.8% | 0.7% | 3.9% | 2.8% | 3.4% | 9.9% | 0.9% |
| Shares Outstanding | — | $121M | $121M | $124M | $127M | $129M | $133M | $135M | $138M | $146M | $151M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HUM stock.
Humana Inc.'s current P/E ratio is 37.8x. The historical average is 19.2x. This places it at the 96th percentile of its historical range.
Humana Inc.'s current EV/EBITDA is 23.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
Humana Inc.'s return on equity (ROE) is 7.0%. The historical average is 13.0%.
Based on historical data, Humana Inc. is trading at a P/E of 37.8x. This is at the 96th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Humana Inc.'s current dividend yield is 0.96% with a payout ratio of 36.2%.
Humana Inc. has 14.5% gross margin and 1.1% operating margin.
Humana Inc.'s Debt/EBITDA ratio is 5.7x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Medicare Advantage reimbursement pressure
Metrics are mathematically derived from official filings.
Underwriting Recovery After Q4 Loss
Humana's combined ratio improved to 96.7% in 2026Q2 from 103.2% in 2025Q4, as per financial statements, signaling a rebound from the trough but still leaving a thin 3.3% underwriting margin.
The sequential improvement in the combined ratio from 103.2% in 2025Q4 to 96.7% in 2026Q2 appears driven by a sharp reduction in the expense ratio (14.8% to 10.1%) and a modest loss ratio improvement (88.3% to 86.5%). However, the loss ratio remains elevated relative to the 84.8% seen in early 2024, suggesting that medical cost trends may still be pressuring margins. The sustainability of this recovery hinges on whether the expense ratio can stay near 10% and whether loss ratios can revert to sub-85% levels, which warrants monitoring given the prior-year reserve releases that may have supported recent results.
ROE Volatility Masks Underlying Stability
ROE swung from -4.4% in 2025Q4 to 6.5% in 2026Q1, as reported in quarterly data, reflecting the underwriting cycle; the 2026Q2 ROE of 3.7% suggests a normalized run-rate below historical peers.
The extreme quarterly ROE volatility, including a -4.4% print in 2025Q4, appears tied to underwriting losses rather than investment performance, given the minimal contribution from investment income. The 2026Q2 ROE of 3.7% annualizes to roughly 15%, which is below UnitedHealth's 13.5% but above Centene's negative return, indicating a mid-tier profitability profile. Investors should note that the 2026Q1 ROE of 6.5% was likely flattered by reserve releases, as the cash flow statement shows negative operating cash flow in 2026Q2, suggesting that accrual earnings may overstate economic profitability.
Expense Ratio Efficiency Improves Sharply
Humana's expense ratio fell to 10.1% in 2026Q2 from 14.8% in 2025Q4, as per company filings, indicating improved operating leverage, though the loss ratio remains the dominant cost driver.
The 470 basis point improvement in the expense ratio over two quarters appears to reflect scale benefits from the 26% premium growth, as fixed costs are spread over a larger base. However, the expense ratio is still above the 11.8% level seen in 2024Q1, suggesting that the recent efficiency gains may be partially due to timing or one-time items. Compared to peers, Humana's expense ratio is lower than Centene's but higher than UnitedHealth's, indicating room for further optimization. The key question is whether the expense ratio can sustain sub-11% levels as the company invests in Medicare Advantage growth, which may pressure future efficiency.
Underwriting Leverage Elevated by Reserve Growth
With claims liabilities up 28% year-over-year to $35.4B in 2026Q2, as per the balance sheet, Humana's premium-to-surplus ratio appears stretched, though the D/E of 0.74 remains within manageable range.
The rapid growth in claims liabilities relative to equity (which rose only 5.5%) suggests that underwriting leverage is increasing, as the company is writing more premiums per dollar of surplus. While the D/E ratio of 0.74 is stable and below CVS's 1.24, the adequacy of reserves is critical; if the reserve growth reflects conservative reserving, it may be prudent, but if it signals deteriorating medical trends, it could strain capital. Rating agencies typically monitor premium-to-surplus ratios for health insurers, and the current trajectory may warrant closer scrutiny, especially given the negative operating cash flow in 2026Q2.
Valuation Premium Reflects Growth, Not Profitability
Humana trades at 2.63x book value versus UnitedHealth's 3.66x and Elevance's 2.00x, as per peer data, implying a mid-tier valuation that appears justified by its growth but not by its ROE.
Humana's P/B of 2.63x is below UnitedHealth's 3.66x but above Elevance's 2.00x and Centene's 1.63x, suggesting the market is pricing in a growth premium relative to managed care peers. However, Humana's ROE of 3.7% in 2026Q2 is significantly below UnitedHealth's 13.5% and Elevance's 11.2%, indicating that the valuation may be supported by expectations of margin recovery rather than current profitability. The forward P/E of 42.12x is the highest among peers, implying that investors are betting on a return to historical earnings power, which may be optimistic given the persistent loss ratio pressure and reliance on reserve releases.
Combined Ratio Misleads Without Reserve Adjustments
The combined ratio of 96.7% in 2026Q2, as reported, may understate true underwriting performance because prior-year reserve releases appear to have boosted earnings, obscuring current-year cost trends.
For health insurers, the combined ratio is often misapplied because it can be distorted by reserve development. Humana's 2026Q2 net income of $693M despite a 96.7% combined ratio suggests that reserve releases are contributing to earnings, as the cash flow statement shows negative operating cash flow. Investors should adjust the combined ratio for reserve development to assess current-year underwriting profitability; without this adjustment, the ratio may appear healthier than the underlying medical cost trend. An alternative metric is the current-year loss ratio excluding prior-year development, which would likely be higher than the reported 86.5%, indicating that the underwriting margin is thinner than it appears.