Select Medical Holdings Corporation

NYSE:SEM Stock Report

Market Cap: US$2.2b

Select Medical Holdings Valuation

Is SEM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SEM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
US$43.38
Fair Value
60.0% undervalued intrinsic discount
6
Number of Analysts

Below Fair Value: SEM ($17.35) is trading below our estimate of fair value ($43.38)

Significantly Below Fair Value: SEM is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SEM?

Key metric: As SEM is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SEM. This is calculated by dividing SEM's market cap by their current earnings.
What is SEM's PE Ratio?
PE Ratio49.7x
EarningsUS$45.00m
Market CapUS$2.24b

Price to Earnings Ratio vs Peers

How does SEM's PE Ratio compare to its peers?

The above table shows the PE ratio for SEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.2x
CON Concentra Group Holdings Parent
16.4x9.7%US$2.7b
ACHC Acadia Healthcare Company
8x7.1%US$2.0b
ARDT Ardent Health Partners
8.5x12.4%US$1.8b
PACS PACS Group
16.1x47.3%US$1.5b
SEM Select Medical Holdings
49.7x36.8%US$2.2b

Price-To-Earnings vs Peers: SEM is expensive based on its Price-To-Earnings Ratio (49.7x) compared to the peer average (12.2x).

Price to Earnings Ratio vs Industry

How does SEM's PE Ratio compare vs other companies in the US Healthcare Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC Tenet Healthcare
3.6x-17.4%US$11.52b
IDXG Interpace Biosciences
0.4xn/aUS$2.88m
CMAX.Q CareMax
n/a77.2%US$3.00
IONM Assure Holdings
n/an/aUS$3.00
No more companies available in this PE range
SEM 49.7xIndustry Avg. 23.8xNo. of Companies9PE01632486480+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SEM is expensive based on its Price-To-Earnings Ratio (49.7x) compared to the US Healthcare industry average (23.8x).

Price to Earnings Ratio vs Fair Ratio

What is SEM's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.7x
Fair PE Ratio45.5x

Price-To-Earnings vs Fair Ratio: SEM is expensive based on its Price-To-Earnings Ratio (49.7x) compared to the estimated Fair Price-To-Earnings Ratio (45.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$17.35
US$23.17
+33.5%
8.8%US$25.00US$19.00n/a6
Apr ’26US$16.50
US$22.80
+38.2%
8.9%US$25.00US$19.00n/a5
Mar ’26US$18.19
US$22.80
+25.3%
8.9%US$25.00US$19.00n/a5
Feb ’26US$19.67
US$29.50
+50.0%
34.8%US$47.00US$21.00n/a4
Jan ’26US$18.85
US$34.25
+81.7%
28.0%US$47.00US$24.00n/a4
Dec ’25US$21.11
US$38.75
+83.6%
20.1%US$47.00US$26.00n/a4
Nov ’25US$35.95
US$43.40
+20.7%
11.3%US$50.00US$37.00n/a5
Oct ’25US$34.06
US$43.40
+27.4%
11.3%US$50.00US$37.00n/a5
Sep ’25US$36.07
US$43.40
+20.3%
11.3%US$50.00US$37.00n/a5
Aug ’25US$39.18
US$40.67
+3.8%
14.1%US$48.00US$34.00n/a3
Jul ’25US$35.57
US$39.00
+9.6%
7.7%US$42.00US$34.00n/a4
Jun ’25US$34.55
US$39.00
+12.9%
7.7%US$42.00US$34.00n/a4
May ’25US$27.98
US$35.80
+27.9%
9.6%US$40.00US$31.00n/a5
Apr ’25US$29.73
US$35.80
+20.4%
9.6%US$40.00US$31.00US$16.505
Mar ’25US$27.13
US$35.30
+30.1%
11.9%US$40.00US$28.50US$18.195
Feb ’25US$26.85
US$33.30
+24.0%
15.3%US$40.00US$28.50US$19.675
Jan ’25US$23.50
US$32.20
+37.0%
15.4%US$39.00US$26.00US$18.855
Dec ’24US$23.45
US$32.20
+37.3%
15.4%US$39.00US$26.00US$21.115
Nov ’24US$22.56
US$37.50
+66.2%
3.0%US$39.00US$36.00US$35.954
Oct ’24US$25.27
US$37.50
+48.4%
3.0%US$39.00US$36.00US$34.064
Sep ’24US$29.06
US$36.40
+25.3%
6.6%US$39.00US$32.00US$36.075
Aug ’24US$29.92
US$35.80
+19.7%
9.9%US$39.00US$29.00US$39.185
Jul ’24US$31.86
US$35.80
+12.4%
9.9%US$39.00US$29.00US$35.575
Jun ’24US$27.65
US$35.80
+29.5%
9.9%US$39.00US$29.00US$34.555
May ’24US$30.18
US$33.20
+10.0%
10.5%US$39.00US$29.00US$27.985
Apr ’24US$25.85
US$33.20
+28.4%
10.5%US$39.00US$29.00US$29.735
AnalystConsensusTarget
Consensus Narrative from 6 Analysts
US$23.17
Fair Value
25.1% undervalued intrinsic discount
6
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/27 10:29
End of Day Share Price 2025/04/25 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Select Medical Holdings Corporation is covered by 18 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brian WilliamsAvondale Partners
Benjamin MayoBaird
William SutherlandBenchmark Company