There has been a lot of uncertainty surrounding Obamacare and how health insurers would fare under the new regime. This issue is certainly reflected in the P/E multiple of Aetna (NYSE:AET) which has recently traded in a P/E multiple range from the high-single to low-double digits over the last few years. In contrast, a decade ago when investors were more sanguine about the prospects at the firm, multiples were often as high as 18-20X ttm EPS. Longer-term bulls on the stock are no doubt hoping that those days will return again soon with AET likely set to earn $6.60 or more this year.
Overall, I believe that the shift in the discussion around health insurance will be good...
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