TacticScaleWhat Molina Healthcare Does & How It Makes Money (MOH)
Updated October 2026 · reflects Molina Healthcare's latest reported financials
Managed care insurer serving Medicaid, Medicare and marketplace members. Molina gets paid by government programs and marketplace members to cover and manage their healthcare.
How Molina Healthcare makes money
Molina gets paid by government programs and marketplace members to cover and manage their healthcare. It keeps the difference between that revenue and the medical and administrative costs it pays out.
What Molina Healthcare does
Molina Healthcare, Inc. is a U.S. managed care company that provides health plans to low-income families and individuals. It serves members through the Medicaid and Medicare programs and through the state insurance marketplaces, and reports results in four segments: Medicaid, Medicare, Marketplace, and Other. Because most of its business depends on government-funded programs, Molina's results are closely tied to public healthcare policy and funding. The company was founded in 1980 and is based in Long Beach, California.
Products & services
- Medicaid managed care plans
- Medicare health plans
- State insurance marketplace plans
- Managed healthcare services
What is Molina Healthcare worth?
On an owner-earnings DCF, Molina Healthcare's most-likely value is about $541 versus a recent price near $197 (175% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$249) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.
On the financials alone, $197 is below even the no-growth floor ($249); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -2.4%/yr. A bargain only if that pessimism is overdone.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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