Tenet Healthcare Corporation

DB:THC1 Stock Report

Market Cap: €11.7b

Tenet Healthcare Valuation

Is THC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 THC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: THC1 (€123) is trading below our estimate of fair value (€482.02)

Significantly Below Fair Value: THC1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for THC1?

Key metric: As THC1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for THC1. This is calculated by dividing THC1's market cap by their current earnings.
What is THC1's PE Ratio?
PE Ratio3.8x
EarningsUS$3.13b
Market CapUS$12.00b

Price to Earnings Ratio vs Peers

How does THC1's PE Ratio compare to its peers?

The above table shows the PE ratio for THC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.3x
RHK RHÖN-KLINIKUM
20.7x7.5%€930.4m
M12 M1 Kliniken
18.2x16.0%€304.3m
FME Fresenius Medical Care
19.4x17.0%€12.8b
LIK LIMES Schlosskliniken
23xn/a€98.5m
THC1 Tenet Healthcare
3.8x-30.6%€12.0b

Price-To-Earnings vs Peers: THC1 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does THC1's PE Ratio compare vs other companies in the European Healthcare Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC1 3.8xIndustry Avg. 18.9xNo. of Companies6PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: THC1 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the European Healthcare industry average (18.4x).

Price to Earnings Ratio vs Fair Ratio

What is THC1'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.

THC1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio3.8x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: THC1 is good value based on its Price-To-Earnings Ratio (3.8x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).

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 THC1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€123.00
€173.16
+40.8%
11.3%€209.38€135.09n/a20
Dec ’25€133.00
€173.85
+30.7%
10.3%€206.76€133.39n/a20
Nov ’25€142.00
€168.32
+18.5%
9.5%€199.81€128.91n/a20
Oct ’25€149.00
€156.32
+4.9%
8.5%€178.68€116.10n/a20
Sep ’25€148.00
€154.16
+4.2%
8.1%€177.24€115.16n/a20
Aug ’25€141.00
€153.95
+9.2%
8.8%€175.75€118.40n/a20
Jul ’25€123.00
€132.49
+7.7%
11.1%€154.03€97.08n/a20
Jun ’25€123.00
€123.15
+0.1%
14.4%€152.36€78.49n/a19
May ’25€92.50
€116.37
+25.8%
13.7%€154.32€79.50n/a19
Apr ’25€96.50
€100.73
+4.4%
9.8%€127.00€78.80n/a18
Mar ’25€86.00
€98.01
+14.0%
9.8%€126.75€78.64n/a16
Feb ’25€81.00
€83.43
+3.0%
8.0%€96.60€69.00n/a16
Jan ’25€68.50
€76.77
+12.1%
11.2%€87.02€58.62€119.0016
Dec ’24€63.50
€74.83
+17.8%
11.8%€87.10€58.68€133.0016
Nov ’24€50.50
€80.26
+58.9%
11.5%€92.74€64.35€142.0016
Oct ’24€63.50
€87.97
+38.5%
6.6%€98.27€77.68€149.0017
Sep ’24€71.50
€84.99
+18.9%
7.4%€96.24€69.66€148.0018
Aug ’24€67.50
€82.75
+22.6%
8.2%€95.60€69.20€141.0018
Jul ’24€75.00
€80.39
+7.2%
8.3%€96.16€69.60€123.0018
Jun ’24€66.50
€80.29
+20.7%
8.4%€97.65€70.68€123.0018
May ’24€65.00
€76.58
+17.8%
9.2%€95.29€65.34€92.5018
Apr ’24€52.76
€69.11
+31.0%
13.2%€89.21€56.35€96.5017
Mar ’24€55.12
€69.11
+25.4%
13.2%€89.21€56.35€86.0017
Feb ’24€50.25
€61.37
+22.1%
23.2%€87.56€36.87€81.0017
Jan ’24€44.81
€65.71
+46.6%
26.1%€96.64€40.69€68.5017

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 Analysis2025/01/02 03:10
End of Day Share Price 2025/01/02 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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

Tenet Healthcare Corporation is covered by 44 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brian Kemp DolliverAvondale Partners
Hua HaBaird
Ishan MajumdarBaptista Research