Sonic Healthcare Limited

ASX:SHL Stock Report

Market Cap: AU$11.4b

Sonic Healthcare Valuation

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

AU$35.1
Fair Value
34.4% undervalued intrinsic discount
14
Number of Analysts

Below Fair Value: SHL (A$23.04) is trading below our estimate of fair value (A$35.1)

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?

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

The above table shows the Price to Earnings ratio for SHL. This is calculated by dividing SHL's market cap by their current earnings.
What is SHL's PE Ratio?
PE Ratio22.2x
EarningsAU$513.60m
Market CapAU$11.39b

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 Average112.6x
IDX Integral Diagnostics
197x31.34%AU$920.6m
ACL Australian Clinical Labs
17x10.35%AU$550.7m
AHX Apiam Animal Health
190.7x66.06%AU$158.7m
COH Cochlear
45.6x13.52%AU$17.7b
SHL Sonic Healthcare
22.2x11.89%AU$11.4b

Price-To-Earnings vs Peers: SHL is good value based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (112.6x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SHL 22.2xIndustry Avg. 19.6xNo. of Companies4PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SHL is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the Global Healthcare industry average (19.6x).

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 Ratio22.2x
Fair PE Ratio38.3x

Price-To-Earnings vs Fair Ratio: SHL is good value based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (38.3x).

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 SHL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$23.04
AU$27.77
+20.52%
10.68%AU$33.30AU$23.50n/a14
Dec ’26AU$23.32
AU$27.77
+19.08%
10.68%AU$33.30AU$23.50n/a14
Nov ’26AU$21.16
AU$27.85
+31.64%
10.57%AU$33.30AU$23.80n/a14
Oct ’26AU$21.32
AU$28.10
+31.82%
9.53%AU$33.30AU$24.00n/a15
Sep ’26AU$23.99
AU$28.23
+17.68%
8.60%AU$33.30AU$24.50n/a16
Aug ’26AU$27.34
AU$29.72
+8.71%
9.07%AU$33.70AU$24.53n/a15
Jul ’26AU$26.72
AU$30.00
+12.26%
8.27%AU$33.70AU$24.53n/a15
Jun ’26AU$26.67
AU$29.65
+11.16%
8.06%AU$33.00AU$24.66n/a14
May ’26AU$25.74
AU$29.65
+15.18%
8.06%AU$33.00AU$24.66n/a14
Apr ’26AU$25.90
AU$29.90
+15.44%
6.29%AU$33.00AU$26.50n/a14
Mar ’26AU$27.45
AU$30.04
+9.43%
6.27%AU$33.00AU$26.50n/a13
Feb ’26AU$28.55
AU$29.45
+3.17%
8.24%AU$33.00AU$25.45n/a13
Jan ’26AU$27.01
AU$28.87
+6.89%
10.07%AU$33.00AU$23.68n/a14
Dec ’25AU$28.57
AU$27.78
-2.77%
10.25%AU$32.21AU$23.68AU$23.3214
Nov ’25AU$26.64
AU$27.47
+3.11%
10.72%AU$32.21AU$23.50AU$21.1614
Oct ’25AU$27.04
AU$27.49
+1.65%
10.63%AU$32.21AU$23.68AU$21.3214
Sep ’25AU$27.68
AU$27.50
-0.64%
10.66%AU$32.21AU$23.68AU$23.9914
Aug ’25AU$27.41
AU$26.74
-2.43%
10.20%AU$32.00AU$22.50AU$27.3414
Jul ’25AU$25.66
AU$27.14
+5.78%
9.47%AU$32.00AU$22.50AU$26.7215
Jun ’25AU$24.33
AU$27.14
+11.57%
9.47%AU$32.00AU$22.50AU$26.6715
May ’25AU$26.35
AU$30.63
+16.23%
9.37%AU$34.94AU$25.95AU$25.7415
Apr ’25AU$29.41
AU$30.71
+4.41%
9.04%AU$34.94AU$25.95AU$25.9015
Mar ’25AU$29.15
AU$30.61
+4.99%
8.93%AU$34.05AU$25.95AU$27.4515
Feb ’25AU$31.59
AU$33.43
+5.83%
7.33%AU$37.00AU$29.80AU$28.5514
Jan ’25AU$32.08
AU$33.19
+3.45%
8.91%AU$39.00AU$29.00AU$27.0115
Dec ’24AU$29.12
AU$33.01
+13.38%
10.15%AU$39.00AU$27.44AU$28.5716
AU$27.77
Fair Value
17.0% undervalued intrinsic discount
14
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 Analysis2025/12/08 00:26
End of Day Share Price 2025/12/08 00:00
Earnings2025/06/30
Annual Earnings2025/06/30

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

Sonic Healthcare Limited is covered by 23 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
Saul HadassinBarrenjoey Markets Pty Limited
Benjamin BrayshawBarrenjoey Markets Pty Limited
Martyn JacobsBell Potter