Ramsay Health Care Limited

ASX:RHC Stock Report

Market Cap: AU$8.7b

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$37.75) is trading below our estimate of fair value (A$91.83)

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 Ratio34.1x
EarningsAU$253.90m
Market CapAU$8.73b

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 Average39.5x
PSQ Pacific Smiles Group
38.7x16.3%AU$311.2m
SHL Sonic Healthcare
26x11.0%AU$13.3b
COH Cochlear
53.7x11.7%AU$19.5b
ANN Ansell
39.5x22.8%AU$4.7b
RHC Ramsay Health Care
34.1x19.3%AU$8.7b

Price-To-Earnings vs Peers: RHC is good value based on its Price-To-Earnings Ratio (34.1x) compared to the peer average (39.5x).


Price to Earnings Ratio vs Industry

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

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RHC 34.1xIndustry Avg. 20.6xNo. of Companies75PE01632486480+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RHC is expensive based on its Price-To-Earnings Ratio (34.1x) compared to the Global Healthcare industry average (20.6x).


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 Ratio34.1x
Fair PE Ratio37.3x

Price-To-Earnings vs Fair Ratio: RHC is good value based on its Price-To-Earnings Ratio (34.1x) compared to the estimated Fair Price-To-Earnings Ratio (37.3x).


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$37.75
AU$45.52
+20.6%
12.0%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$42.00n/a15
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
Nov ’23AU$58.59
AU$68.66
+17.2%
8.1%AU$81.11AU$59.00AU$49.0316

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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