Ann: HUM - hummgroup financial position update, page-47

Further I agree with AA valuations of asking for additional 30-35% premium based on the principle that the valuation of $350m is based on x4.8 earnings (very conservative should be 12x - industry standard) which is generating revenue from current contract ;
then they get access to 2.5 million customer
Commercial rate of acquiring a customer is $57/ customer which leads to a valuation of 2.5m x 57= 142m

Then, $142m is appox 40% of $350m......so AA being conservative is correct.

Further, HUM has customers who have had credit history checks etc and are paying customer with regular accounts. Commercial cost of acquiring such customers is worth $400.
Now if one thinks of it that way then the premium rises even higher....$400 x 2.5 =$1b.......but HUM lacks the Mojo to attract this premium...

And the last example, which does not apply here, acquiring home loan customer is about $3000-$4000.

This was going cheap .

@Obliqua@Chao88