Ramsay Health Care Limited

ASX:RHC Stock Report

Market Cap: AU$8.3b

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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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.

Discounted Cash Flow
Simply Wall St
AU$78.36
Fair Value
53.9% undervalued intrinsic discount
15
Number of Analysts

Below Fair Value: RHC (A$36.13) is trading below our estimate of fair value (A$78.36)

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 barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RHC. This is calculated by dividing RHC's market cap by their current revenue.
What is RHC's PS Ratio?
PS Ratio0.5x
SalesAU$17.12b
Market CapAU$8.30b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for RHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.5x
REG Regis Healthcare
2.1x8.21%AU$2.3b
MVF Monash IVF Group
1.2x2.45%AU$311.7m
PSQ Pacific Smiles Group
1.5x6.87%AU$287.7m
SHL Sonic Healthcare
1.3x6.40%AU$12.6b
RHC Ramsay Health Care
0.5x4.66%AU$8.3b

Price-To-Sales vs Peers: RHC is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (1.5x).

Price to Sales Ratio vs Industry

How does RHC's PS Ratio compare vs other companies in the AU Healthcare Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
PGC Paragon Care
0.2x7.03%US$419.31m
FCG Freedom Care Group Holdings
0.1xn/aUS$2.51m
HHI Health House International
0.05xn/aUS$590.30k
TTB Total Brain
0.03xn/aUS$179.68k
No more companies available in this PS range
RHC 0.5xIndustry Avg. 1.5xNo. of Companies4PS00.81.62.43.24+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RHC is good value based on its Price-To-Sales Ratio (0.5x) compared to the Oceanic Healthcare industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

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

RHC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: RHC is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

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$36.13
AU$40.87
+13.11%
12.70%AU$58.00AU$37.10n/a15
May ’26AU$33.68
AU$41.03
+21.81%
13.09%AU$58.00AU$36.10n/a15
Apr ’26AU$34.44
AU$41.11
+19.37%
13.00%AU$58.00AU$36.10n/a15
Mar ’26AU$34.40
AU$41.62
+20.98%
12.64%AU$58.00AU$37.10n/a14
Feb ’26AU$33.74
AU$44.81
+32.82%
14.77%AU$62.00AU$35.75n/a14
Jan ’26AU$34.54
AU$45.31
+31.18%
12.16%AU$62.00AU$40.00n/a14
Dec ’25AU$39.59
AU$45.31
+14.45%
12.16%AU$62.00AU$40.00n/a14
Nov ’25AU$39.28
AU$45.67
+16.26%
11.81%AU$62.00AU$40.00n/a14
Oct ’25AU$41.93
AU$46.32
+10.48%
12.44%AU$62.00AU$40.00n/a15
Sep ’25AU$41.55
AU$48.45
+16.60%
12.59%AU$62.00AU$40.00n/a15
Aug ’25AU$46.44
AU$54.64
+17.66%
10.98%AU$68.00AU$49.40n/a15
Jul ’25AU$46.70
AU$56.86
+21.75%
10.36%AU$68.00AU$50.00n/a16
Jun ’25AU$47.11
AU$56.86
+20.69%
10.36%AU$68.00AU$50.00n/a16
May ’25AU$51.08
AU$57.22
+12.01%
9.57%AU$68.00AU$50.00AU$33.6816
Apr ’25AU$56.51
AU$57.22
+1.25%
9.57%AU$68.00AU$50.00AU$34.4416
Mar ’25AU$54.46
AU$57.59
+5.74%
9.17%AU$68.00AU$50.00AU$34.4016
Feb ’25AU$50.80
AU$56.05
+10.33%
9.68%AU$68.00AU$49.50AU$33.7415
Jan ’25AU$52.61
AU$55.48
+5.46%
12.51%AU$68.00AU$42.00AU$34.5415
Dec ’24AU$48.59
AU$55.48
+14.19%
12.51%AU$68.00AU$42.00AU$39.5915
Nov ’24AU$49.03
AU$56.64
+15.51%
12.53%AU$68.00AU$43.00AU$39.2815
Oct ’24AU$51.87
AU$56.66
+9.24%
13.00%AU$70.41AU$43.00AU$41.9316
Sep ’24AU$51.24
AU$56.97
+11.18%
12.62%AU$70.41AU$43.00AU$41.5517
Aug ’24AU$59.34
AU$63.83
+7.57%
9.00%AU$75.57AU$53.60AU$46.4417
Jul ’24AU$56.29
AU$65.25
+15.92%
8.19%AU$75.57AU$54.00AU$46.7017
Jun ’24AU$57.79
AU$65.83
+13.92%
7.64%AU$75.57AU$54.00AU$47.1117
May ’24AU$65.52
AU$69.48
+6.04%
6.20%AU$77.56AU$60.60AU$51.0817
AnalystConsensusTarget
Consensus Narrative from 15 Analysts
AU$40.87
Fair Value
11.6% undervalued intrinsic discount
15
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/25 21:48
End of Day Share Price 2025/05/23 00:00
Earnings2024/12/31
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.

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

Ramsay Health Care Limited is covered by 33 analysts. 15 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
Saul HadassinBarrenjoey Markets Pty Limited
Lyanne HarrisonBofA Global Research