Netcare Limited

BST:NH7 Stock Report

Market Cap: €1.0b

Netcare Valuation

Is NH7 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 NH7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NH7 (€0.73) is trading below our estimate of fair value (€1)

Significantly Below Fair Value: NH7 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NH7?

Key metric: As NH7 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NH7. This is calculated by dividing NH7's market cap by their current earnings.
What is NH7's PE Ratio?
PE Ratio14.9x
EarningsR1.29b
Market CapR19.18b

Price to Earnings Ratio vs Peers

How does NH7's PE Ratio compare to its peers?

The above table shows the PE ratio for NH7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
RHK RHÖN-KLINIKUM
18.9x7.5%€850.1m
M12 M1 Kliniken
17.9x17.5%€300.6m
LIK LIMES Schlosskliniken
22.9xn/a€98.5m
JTH Gesundheitswelt Chiemgau
7xn/a€24.4m
NH7 Netcare
14.9x18.2%€19.2b

Price-To-Earnings vs Peers: NH7 is good value based on its Price-To-Earnings Ratio (14.9x) compared to the peer average (16.7x).

Price to Earnings Ratio vs Industry

How does NH7's PE Ratio compare vs other companies in the European Healthcare Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NH7 14.9xIndustry Avg. 18.5xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NH7 is good value based on its Price-To-Earnings Ratio (14.9x) compared to the European Healthcare industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is NH7'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.

NH7 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.9x
Fair PE Ratio26.7x

Price-To-Earnings vs Fair Ratio: NH7 is good value based on its Price-To-Earnings Ratio (14.9x) compared to the estimated Fair Price-To-Earnings Ratio (26.7x).

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 NH7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.73
€0.82
+12.2%
10.0%€0.92€0.69n/a6
Nov ’25€0.70
€0.77
+10.3%
12.6%€0.92€0.63n/a6
Oct ’25€0.72
€0.75
+4.4%
11.9%€0.91€0.62n/a6
Sep ’25€0.63
€0.73
+17.5%
11.9%€0.89€0.61n/a6
Aug ’25€0.59
€0.72
+21.6%
11.7%€0.89€0.61n/a7
Jul ’25€0.60
€0.72
+19.6%
11.7%€0.89€0.61n/a7
Jun ’25€0.50
€0.76
+52.7%
9.0%€0.86€0.64n/a7
May ’25€0.51
€0.80
+56.5%
8.1%€0.90€0.68n/a8
Apr ’25€0.52
€0.80
+53.5%
8.1%€0.90€0.68n/a8
Mar ’25€0.59
€0.82
+39.0%
6.6%€0.89€0.75n/a8
Feb ’25€0.62
€0.82
+32.3%
6.6%€0.89€0.75n/a8
Jan ’25€0.61
€0.84
+36.1%
7.2%€0.93€0.76n/a8
Dec ’24€0.61
€0.83
+34.9%
7.2%€0.92€0.76n/a8
Nov ’24€0.59
€0.84
+40.5%
7.7%€0.93€0.74€0.708
Oct ’24€0.62
€0.84
+34.9%
7.7%€0.93€0.74€0.728
Sep ’24€0.59
€0.82
+39.6%
7.6%€0.93€0.74€0.637
Aug ’24€0.65
€0.82
+26.7%
7.6%€0.93€0.74€0.597
Jul ’24€0.65
€0.81
+23.9%
7.3%€0.90€0.72€0.607
Jun ’24€0.58
€0.79
+36.7%
6.3%€0.87€0.71€0.507
May ’24€0.70
€0.86
+21.9%
6.3%€0.93€0.76€0.517
Apr ’24€0.69
€0.86
+24.6%
6.3%€0.93€0.76€0.527
Mar ’24€0.71
€0.90
+26.2%
5.9%€0.97€0.79€0.598
Feb ’24€0.69
€0.90
+30.4%
5.9%€0.97€0.79€0.628
Jan ’24€0.75
€0.90
+19.7%
3.8%€0.95€0.83€0.618
Dec ’23€0.70
€0.94
+33.8%
3.7%€1.00€0.87€0.618
Nov ’23€0.80
€0.96
+20.6%
3.7%€1.00€0.88€0.597

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

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