Ramsay Health Care Limited

ASX:RHC Stock Report

Market Cap: AU$7.9b

Ramsay Health Care Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 RHC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RHC (A$34.4) is trading below our estimate of fair value (A$89.9)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RHC. This is calculated by dividing RHC's market cap by their current earnings.
What is RHC's PE Ratio?
PE Ratio31.1x
EarningsAU$253.90m
Market CapAU$7.89b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39x
PSQ Pacific Smiles Group
38.8x16.3%AU$311.6m
SHL Sonic Healthcare
25.5x12.1%AU$13.0b
COH Cochlear
53x11.7%AU$18.9b
ANN Ansell
38.8x22.7%AU$4.8b
RHC Ramsay Health Care
31.1x19.3%AU$7.9b

Price-To-Earnings vs Peers: RHC is good value based on its Price-To-Earnings Ratio (31.1x) compared to the peer average (39x).

Price to Earnings Ratio vs Industry

How does RHC's PE Ratio compare vs other companies in the Global Healthcare Industry?

14 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RHC 31.1xIndustry Avg. 20.4xNo. of Companies70PE01632486480+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RHC is expensive based on its Price-To-Earnings Ratio (31.1x) compared to the Global Healthcare industry average (20.4x).

Price to Earnings Ratio vs Fair Ratio

What is RHC'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.

RHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.1x
Fair PE Ratio36.9x

Price-To-Earnings vs Fair Ratio: RHC is good value based on its Price-To-Earnings Ratio (31.1x) compared to the estimated Fair Price-To-Earnings Ratio (36.9x).

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 RHC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$34.40
AU$45.31
+31.7%
12.2%AU$62.00AU$40.00n/a14
Dec ’25AU$39.59
AU$45.31
+14.4%
12.2%AU$62.00AU$40.00n/a14
Nov ’25AU$39.28
AU$45.67
+16.3%
11.8%AU$62.00AU$40.00n/a14
Oct ’25AU$41.93
AU$46.32
+10.5%
12.4%AU$62.00AU$40.00n/a15
Sep ’25AU$41.55
AU$48.45
+16.6%
12.6%AU$62.00AU$40.00n/a15
Aug ’25AU$46.44
AU$54.64
+17.7%
11.0%AU$68.00AU$49.40n/a15
Jul ’25AU$46.70
AU$56.86
+21.8%
10.4%AU$68.00AU$50.00n/a16
Jun ’25AU$47.11
AU$56.86
+20.7%
10.4%AU$68.00AU$50.00n/a16
May ’25AU$51.08
AU$57.22
+12.0%
9.6%AU$68.00AU$50.00n/a16
Apr ’25AU$56.51
AU$57.22
+1.3%
9.6%AU$68.00AU$50.00n/a16
Mar ’25AU$54.46
AU$57.59
+5.7%
9.2%AU$68.00AU$50.00n/a16
Feb ’25AU$50.80
AU$56.05
+10.3%
9.7%AU$68.00AU$49.50n/a15
Jan ’25AU$52.61
AU$55.48
+5.5%
12.5%AU$68.00AU$42.00n/a15
Dec ’24AU$48.59
AU$55.48
+14.2%
12.5%AU$68.00AU$42.00AU$39.5915
Nov ’24AU$49.03
AU$56.64
+15.5%
12.5%AU$68.00AU$43.00AU$39.2815
Oct ’24AU$51.87
AU$56.66
+9.2%
13.0%AU$70.41AU$43.00AU$41.9316
Sep ’24AU$51.24
AU$56.97
+11.2%
12.6%AU$70.41AU$43.00AU$41.5517
Aug ’24AU$59.34
AU$63.83
+7.6%
9.0%AU$75.57AU$53.60AU$46.4417
Jul ’24AU$56.29
AU$65.25
+15.9%
8.2%AU$75.57AU$54.00AU$46.7017
Jun ’24AU$57.79
AU$65.83
+13.9%
7.6%AU$75.57AU$54.00AU$47.1117
May ’24AU$65.52
AU$69.48
+6.0%
6.2%AU$77.56AU$60.60AU$51.0817
Apr ’24AU$66.54
AU$69.44
+4.4%
5.8%AU$77.56AU$63.32AU$56.5117
Mar ’24AU$66.58
AU$68.82
+3.4%
6.6%AU$77.56AU$59.00AU$54.4616
Feb ’24AU$66.14
AU$66.77
+1.0%
6.7%AU$75.00AU$59.00AU$50.8015
Jan ’24AU$64.70
AU$66.14
+2.2%
6.9%AU$75.00AU$59.00AU$52.6115
Dec ’23AU$65.84
AU$66.30
+0.7%
6.8%AU$75.00AU$59.00AU$48.5915

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 Analysis2024/12/20 16:16
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

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 here.

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 .

Analyst Sources

Ramsay Health Care Limited is covered by 32 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John HesterANZ Equities Pty Limited
Russell WrightBarclay Pearce Capital Pty Limited
Saul HadassinBarrenjoey Markets Pty Limited