NextGen Healthcare, Inc.

NasdaqGS:NXGN Stock Report

Market Cap: US$1.6b

NextGen Healthcare Valuation

Is NXGN 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NXGN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NXGN ($23.94) is trading below our estimate of fair value ($27.43)

Significantly Below Fair Value: NXGN is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Key metric: As NXGN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NXGN. This is calculated by dividing NXGN's market cap by their current revenue.
What is NXGN's PS Ratio?
PS Ratio2.3x
SalesUS$695.05m
Market CapUS$1.61b

Price to Sales Ratio vs Peers

How does NXGN's PS Ratio compare to its peers?

The above table shows the PS ratio for NXGN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.5x
CERT Certara
4.1x9.6%US$1.6b
TDOC Teladoc Health
0.6x0.7%US$1.5b
SDGR Schrödinger
7.2x18.9%US$1.4b
GDRX GoodRx Holdings
2.1x6.3%US$1.6b
NXGN NextGen Healthcare
2.3x6.7%US$1.6b

Price-To-Sales vs Peers: NXGN is good value based on its Price-To-Sales Ratio (2.3x) compared to the peer average (4.9x).

Price to Sales Ratio vs Industry

How does NXGN's PS Ratio compare vs other companies in the US Healthcare Services Industry?

14 CompaniesPrice / SalesEstimated GrowthMarket Cap
AMWL American Well
0.5x10.9%US$119.33m
MPLN MultiPlan
0.1x1.7%US$84.25m
CCLD CareCloud
0.4x1.7%US$45.47m
HCTI Healthcare Triangle
0.4xn/aUS$6.40m
NXGN 2.3xIndustry Avg. 2.0xNo. of Companies14PS0246810+
14 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NXGN is expensive based on its Price-To-Sales Ratio (2.3x) compared to the US Healthcare Services industry average (1.9x).

Price to Sales Ratio vs Fair Ratio

What is NXGN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NXGN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.3x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: NXGN is expensive based on its Price-To-Sales Ratio (2.3x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

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 NXGN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Nov ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Oct ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Sep ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Aug ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Jul ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Jun ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
May ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Apr ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Mar ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Feb ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Jan ’25n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Dec ’24n/a
US$22.69
0%
11.5%US$24.00US$16.00n/a8
Nov ’24US$23.91
US$22.69
-5.1%
11.5%US$24.00US$16.00n/a8
Oct ’24US$23.73
US$22.71
-4.3%
11.6%US$24.00US$16.00n/a8
Sep ’24US$19.33
US$20.29
+5.0%
14.6%US$25.00US$16.00n/a10
Aug ’24US$16.64
US$20.00
+20.2%
16.2%US$25.00US$16.00n/a8
Jul ’24US$16.22
US$20.00
+23.3%
16.2%US$25.00US$16.00n/a8
Jun ’24US$15.59
US$20.25
+29.9%
15.2%US$25.00US$16.00n/a8
May ’24US$17.21
US$22.00
+27.8%
11.6%US$26.00US$19.00n/a8
Apr ’24US$17.41
US$21.71
+24.7%
12.0%US$26.00US$19.00n/a7
Mar ’24US$17.97
US$21.71
+20.8%
12.0%US$26.00US$19.00n/a7
Feb ’24US$18.78
US$21.57
+14.9%
12.8%US$26.00US$18.00n/a7
Jan ’24US$18.78
US$21.43
+14.1%
13.2%US$26.00US$18.00n/a7
Dec ’23US$20.57
US$21.43
+4.2%
13.2%US$26.00US$18.00n/a7
Nov ’23US$20.27
US$21.43
+5.7%
13.2%US$26.00US$18.00US$23.917

Analyst Forecast: Target price is lower than the current share price.

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