The Pennant Group, Inc.

DB:1ZU Stock Report

Market Cap: €1.0b

Pennant Group Valuation

Is 1ZU 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 1ZU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1ZU (€28.8) is trading below our estimate of fair value (€50.32)

Significantly Below Fair Value: 1ZU is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1ZU?

Key metric: As 1ZU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1ZU. This is calculated by dividing 1ZU's market cap by their current earnings.
What is 1ZU's PE Ratio?
PE Ratio49.6x
EarningsUS$21.15m
Market CapUS$1.07b

Price to Earnings Ratio vs Peers

How does 1ZU's PE Ratio compare to its peers?

The above table shows the PE ratio for 1ZU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.3x
SYAB SYNLAB
27.9x-11.4%€2.5b
FME Fresenius Medical Care
18.7x19.3%€12.3b
RHK RHÖN-KLINIKUM
18.4x7.5%€823.3m
NXU Nexus
44.1x17.1%€1.2b
1ZU Pennant Group
49.6x30.0%€1.1b

Price-To-Earnings vs Peers: 1ZU is expensive based on its Price-To-Earnings Ratio (49.6x) compared to the peer average (27.5x).

Price to Earnings Ratio vs Industry

How does 1ZU's PE Ratio compare vs other companies in the European Healthcare Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1ZU 49.6xIndustry Avg. 18.8xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1ZU is expensive based on its Price-To-Earnings Ratio (49.6x) compared to the European Healthcare industry average (18.7x).

Price to Earnings Ratio vs Fair Ratio

What is 1ZU'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.

1ZU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio49.6x
Fair PE Ratio29.3x

Price-To-Earnings vs Fair Ratio: 1ZU is expensive based on its Price-To-Earnings Ratio (49.6x) compared to the estimated Fair Price-To-Earnings Ratio (29.3x).

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 1ZU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€28.80
€36.44
+26.5%
2.8%€38.11€35.25n/a4
Nov ’25€30.00
€34.77
+15.9%
5.8%€37.08€31.52n/a4
Oct ’25€29.80
€30.10
+1.0%
14.9%€35.94€23.36n/a4
Sep ’25€30.40
€28.60
-5.9%
10.4%€30.87€23.60n/a4
Aug ’25€28.00
€25.24
-9.9%
3.1%€25.70€23.86n/a4
Jul ’25€21.20
€23.43
+10.5%
2.0%€23.89€22.98n/a4
Jun ’25€21.60
€23.43
+8.5%
2.0%€23.89€22.98n/a4
May ’25€19.30
€20.70
+7.3%
3.2%€21.65€19.76n/a4
Apr ’25€18.50
€19.68
+6.4%
2.3%€20.14€19.22n/a4
Mar ’25€17.40
€17.99
+3.4%
16.4%€20.30€12.92n/a4
Feb ’25€14.20
€14.62
+3.0%
8.8%€16.45€12.80n/a4
Jan ’25€12.70
€13.54
+6.6%
6.0%€14.94€13.07n/a4
Dec ’24€12.40
€13.54
+9.2%
6.0%€14.94€13.07n/a4
Nov ’24€10.20
€12.98
+27.2%
7.6%€14.57€11.84€30.004
Oct ’24€10.70
€12.98
+21.3%
7.6%€14.57€11.84€29.804
Sep ’24€10.90
€12.98
+19.1%
7.6%€14.57€11.84€30.404
Aug ’24€10.40
€13.17
+26.6%
6.4%€14.37€12.57€28.003
Jul ’24€11.40
€14.22
+24.8%
6.1%€14.84€12.99€21.203
Jun ’24€11.20
€14.26
+27.3%
6.1%€14.88€13.02€21.603
May ’24€12.30
€15.18
+23.4%
7.8%€16.31€13.59€19.304
Apr ’24€13.20
€15.65
+18.6%
7.2%€16.97€14.14€18.505
Mar ’24€13.90
€15.65
+12.6%
7.2%€16.97€14.14€17.405
Feb ’24€11.90
€14.81
+24.4%
15.1%€17.31€11.54€14.205
Jan ’24€10.10
€14.81
+46.6%
15.1%€17.31€11.54€12.705
Dec ’23€10.20
€14.81
+45.2%
15.1%€17.31€11.54€12.405
Nov ’23€13.10
€18.41
+40.5%
22.5%€23.52€12.27€10.205

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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