Sonic Healthcare Limited

ASX:SHL Stock Report

Market Cap: AU$12.7b

Sonic Healthcare Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: SHL (A$26.38) is trading below our estimate of fair value (A$76.97)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SHL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA14.4x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SHL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.6x
ACL Australian Clinical Labs
29.6x15.9%AU$715.6m
RHC Ramsay Health Care
34.1x19.3%AU$8.6b
HLA Healthia
46.1xn/aAU$252.1m
SLA SILK Laser Australia
24.5x28.9%AU$177.4m
SHL Sonic Healthcare
24.8x11.0%AU$12.7b

Price-To-Earnings vs Peers: SHL is good value based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (36.6x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a26.6%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: SHL is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the Global Healthcare industry average (20.5x).

Price to Earnings Ratio vs Fair Ratio

What is SHL'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.

SHL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.8x
Fair PE Ratio33x

Price-To-Earnings vs Fair Ratio: SHL is good value based on its Price-To-Earnings Ratio (24.8x) compared to the estimated Fair Price-To-Earnings Ratio (32.9x).

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 SHL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$26.38
AU$27.47
+4.1%
10.7%AU$32.21AU$23.50n/a14
Nov ’25AU$26.64
AU$27.47
+3.1%
10.7%AU$32.21AU$23.50n/a14
Oct ’25AU$27.04
AU$27.49
+1.7%
10.6%AU$32.21AU$23.68n/a14
Sep ’25AU$27.68
AU$27.50
-0.6%
10.7%AU$32.21AU$23.68n/a14
Aug ’25AU$27.41
AU$26.74
-2.4%
10.2%AU$32.00AU$22.50n/a14
Jul ’25AU$25.66
AU$27.14
+5.8%
9.5%AU$32.00AU$22.50n/a15
Jun ’25AU$24.33
AU$27.14
+11.6%
9.5%AU$32.00AU$22.50n/a15
May ’25AU$26.35
AU$30.63
+16.2%
9.4%AU$34.94AU$25.95n/a15
Apr ’25AU$29.41
AU$30.71
+4.4%
9.0%AU$34.94AU$25.95n/a15
Mar ’25AU$29.15
AU$30.61
+5.0%
8.9%AU$34.05AU$25.95n/a15
Feb ’25AU$31.59
AU$33.43
+5.8%
7.3%AU$37.00AU$29.80n/a14
Jan ’25AU$32.08
AU$33.19
+3.4%
8.9%AU$39.00AU$29.00n/a15
Dec ’24AU$29.12
AU$33.01
+13.4%
10.1%AU$39.00AU$27.44n/a16
Nov ’24AU$29.03
AU$34.12
+17.5%
10.3%AU$40.00AU$27.44AU$26.6416
Oct ’24AU$29.80
AU$34.21
+14.8%
10.1%AU$40.00AU$27.44AU$27.0416
Sep ’24AU$32.20
AU$34.30
+6.5%
9.9%AU$40.00AU$27.44AU$27.6817
Aug ’24AU$35.12
AU$35.62
+1.4%
10.8%AU$43.00AU$27.44AU$27.4117
Jul ’24AU$35.57
AU$35.30
-0.8%
10.3%AU$41.00AU$27.44AU$25.6617
Jun ’24AU$35.44
AU$35.20
-0.7%
11.4%AU$43.00AU$27.44AU$24.3317
May ’24AU$35.80
AU$35.73
-0.2%
9.4%AU$43.00AU$30.00AU$26.3515
Apr ’24AU$34.84
AU$34.33
-1.5%
10.9%AU$41.00AU$25.75AU$29.4116
Mar ’24AU$32.04
AU$34.19
+6.7%
11.1%AU$41.00AU$25.75AU$29.1516
Feb ’24AU$31.32
AU$33.76
+7.8%
10.8%AU$43.00AU$25.75AU$31.5915
Jan ’24AU$29.97
AU$34.00
+13.4%
10.7%AU$43.00AU$25.75AU$32.0815
Dec ’23AU$31.80
AU$34.30
+7.9%
11.2%AU$43.00AU$25.75AU$29.1215
Nov ’23AU$33.05
AU$34.81
+5.3%
11.1%AU$42.00AU$25.75AU$29.0315

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

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