HealthEquity, Inc.

DB:2HE Stock Report

Market Cap: €8.2b

HealthEquity Valuation

Is 2HE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 2HE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2HE (€89.5) is trading below our estimate of fair value (€168.76)

Significantly Below Fair Value: 2HE is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2HE?

Key metric: As 2HE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2HE. This is calculated by dividing 2HE's market cap by their current earnings.
What is 2HE's PE Ratio?
PE Ratio81.8x
EarningsUS$105.67m
Market CapUS$8.64b

Price to Earnings Ratio vs Peers

How does 2HE's PE Ratio compare to its peers?

The above table shows the PE ratio for 2HE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.8x
FME Fresenius Medical Care
18.6x19.3%€12.3b
AFX Carl Zeiss Meditec
25.5x16.3%€5.2b
SYAB SYNLAB
28.3x-11.4%€2.5b
RHK RHÖN-KLINIKUM
18.6x7.5%€843.4m
2HE HealthEquity
81.8x32.1%€8.6b

Price-To-Earnings vs Peers: 2HE is expensive based on its Price-To-Earnings Ratio (81.8x) compared to the peer average (22.9x).

Price to Earnings Ratio vs Industry

How does 2HE's PE Ratio compare vs other companies in the European Healthcare Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
2HE 81.8xIndustry Avg. 18.2xNo. of Companies8PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2HE is expensive based on its Price-To-Earnings Ratio (81.8x) compared to the European Healthcare industry average (18.2x).

Price to Earnings Ratio vs Fair Ratio

What is 2HE'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.

2HE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio81.8x
Fair PE Ratio37.7x

Price-To-Earnings vs Fair Ratio: 2HE is expensive based on its Price-To-Earnings Ratio (81.8x) compared to the estimated Fair Price-To-Earnings Ratio (37.7x).

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 2HE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€89.50
€101.44
+13.3%
7.9%€123.49€90.24n/a14
Nov ’25€78.00
€94.78
+21.5%
3.9%€100.62€86.90n/a13
Oct ’25€73.00
€93.47
+28.0%
4.0%€98.79€85.32n/a14
Sep ’25€69.50
€97.54
+40.3%
5.6%€107.41€85.93n/a14
Aug ’25€72.50
€97.54
+34.5%
5.6%€107.41€85.93n/a14
Jul ’25€79.50
€97.54
+22.7%
5.6%€107.41€85.93n/a14
Jun ’25€72.50
€93.63
+29.2%
5.6%€102.27€85.53n/a14
May ’25€74.50
€91.17
+22.4%
7.0%€101.49€77.68n/a15
Apr ’25€73.50
€90.00
+22.4%
7.5%€101.97€78.05n/a14
Mar ’25€76.50
€86.31
+12.8%
8.7%€101.38€72.81n/a14
Feb ’25€70.00
€80.73
+15.3%
8.9%€101.22€70.86n/a14
Jan ’25€59.50
€81.20
+36.5%
9.3%€101.11€70.78n/a12
Dec ’24€61.00
€78.92
+29.4%
10.1%€101.15€67.12n/a12
Nov ’24€67.50
€81.93
+21.4%
9.2%€104.19€72.93€78.0012
Oct ’24€70.00
€78.85
+12.6%
6.9%€88.15€67.52€73.0012
Sep ’24€62.00
€74.75
+20.6%
8.1%€85.93€64.90€69.5013
Aug ’24€61.50
€74.75
+21.5%
8.1%€85.93€64.90€72.5013
Jul ’24€57.00
€74.75
+31.1%
8.1%€85.93€64.90€79.5013
Jun ’24€51.00
€75.00
+47.1%
8.2%€86.71€63.65€72.5013
May ’24€49.60
€75.00
+51.2%
8.2%€86.71€63.65€74.5013
Apr ’24€53.00
€75.00
+41.5%
8.2%€86.71€63.65€73.5013
Mar ’24€61.50
€76.17
+23.9%
7.3%€87.07€66.69€76.5013
Feb ’24€55.50
€76.42
+37.7%
9.3%€92.82€66.17€70.0013
Jan ’24€57.00
€78.25
+37.3%
9.8%€95.88€64.55€59.5014
Dec ’23€60.50
€82.76
+36.8%
11.4%€105.80€69.18€61.0014
Nov ’23€78.50
€80.93
+3.1%
11.1%€104.36€68.24€67.5014

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

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