HealthCo Healthcare and Wellness REIT

ASX:HCW Stock Report

Market Cap: AU$558.1m

HealthCo Healthcare and Wellness REIT Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: HCW (A$1) is trading below our estimate of fair value (A$1.43)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HCW. This is calculated by dividing HCW's market cap by their current earnings.
What is HCW's PE Ratio?
PE Ratio80.9x
EarningsAU$6.90m
Market CapAU$558.11m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HCW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.3x
APZ Aspen Group
10.2x19.2%AU$492.7m
RFF Rural Funds Group
8x-6.5%AU$668.4m
HPI Hotel Property Investments
20.6x4.8%AU$742.0m
CDP Carindale Property Trust
50.6xn/aAU$385.4m
HCW HealthCo Healthcare and Wellness REIT
80.9x39.1%AU$558.1m

Price-To-Earnings vs Peers: HCW is expensive based on its Price-To-Earnings Ratio (80.9x) compared to the peer average (22.3x).

Price to Earnings Ratio vs Industry

How does HCW's PE Ratio compare vs other companies in the Global Health Care REITs Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HCW 80.9xIndustry Avg. 24.9xNo. of Companies5PE020406080100+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HCW is expensive based on its Price-To-Earnings Ratio (80.9x) compared to the Global Health Care REITs industry average (24.9x).

Price to Earnings Ratio vs Fair Ratio

What is HCW'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.

HCW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio80.9x
Fair PE Ratio27.5x

Price-To-Earnings vs Fair Ratio: HCW is expensive based on its Price-To-Earnings Ratio (80.9x) compared to the estimated Fair Price-To-Earnings Ratio (27.5x).

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 HCW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$1.00
AU$1.39
+38.7%
8.4%AU$1.51AU$1.20n/a5
Dec ’25AU$1.14
AU$1.39
+22.2%
8.4%AU$1.51AU$1.20n/a5
Nov ’25AU$1.14
AU$1.38
+21.9%
9.4%AU$1.51AU$1.20n/a4
Oct ’25AU$1.16
AU$1.41
+21.4%
7.0%AU$1.51AU$1.30n/a4
Sep ’25AU$1.22
AU$1.44
+17.7%
5.4%AU$1.51AU$1.32n/a4
Aug ’25AU$1.19
AU$1.45
+22.1%
8.1%AU$1.61AU$1.29n/a4
Jul ’25AU$1.06
AU$1.49
+40.8%
5.0%AU$1.61AU$1.41n/a4
Jun ’25AU$1.13
AU$1.49
+32.6%
5.0%AU$1.61AU$1.41n/a4
May ’25AU$1.18
AU$1.51
+27.6%
4.8%AU$1.61AU$1.41n/a5
Apr ’25AU$1.27
AU$1.59
+25.5%
5.4%AU$1.70AU$1.45n/a5
Mar ’25AU$1.38
AU$1.59
+15.9%
5.4%AU$1.70AU$1.45n/a5
Feb ’25AU$1.35
AU$1.64
+21.5%
5.4%AU$1.75AU$1.48n/a5
Jan ’25AU$1.47
AU$1.64
+11.6%
5.4%AU$1.75AU$1.48n/a5
Dec ’24AU$1.37
AU$1.64
+19.7%
5.4%AU$1.75AU$1.48AU$1.145
Nov ’24AU$1.38
AU$1.61
+16.9%
4.8%AU$1.67AU$1.48AU$1.144
Oct ’24AU$1.45
AU$1.63
+12.1%
5.3%AU$1.70AU$1.48AU$1.164
Sep ’24AU$1.51
AU$1.63
+7.6%
5.3%AU$1.70AU$1.48AU$1.224
Aug ’24AU$1.40
AU$1.63
+16.4%
5.8%AU$1.72AU$1.48AU$1.194
Jul ’24AU$1.32
AU$1.67
+27.0%
2.5%AU$1.72AU$1.62AU$1.064
Jun ’24AU$1.33
AU$1.68
+26.3%
1.9%AU$1.72AU$1.64AU$1.134
May ’24AU$1.35
AU$1.76
+30.7%
9.7%AU$2.06AU$1.64AU$1.184
Apr ’24AU$1.34
AU$1.80
+34.7%
8.6%AU$2.06AU$1.66AU$1.274
Mar ’24AU$1.64
AU$1.85
+12.6%
7.1%AU$2.06AU$1.70AU$1.384
Feb ’24AU$1.67
AU$1.83
+9.5%
7.4%AU$2.05AU$1.70AU$1.354
Jan ’24AU$1.73
AU$1.85
+7.1%
9.1%AU$2.05AU$1.66AU$1.475
Dec ’23AU$1.63
AU$1.87
+14.5%
10.0%AU$2.05AU$1.66AU$1.374

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 Analysis2024/12/21 11:07
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

HealthCo Healthcare and Wellness REIT is covered by 7 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew MacFarlaneBell Potter
Jeffrey PehlGoldman Sachs
Sholto MaconochieJefferies LLC