Patterson Companies, Inc.

NasdaqGS:PDCO Stock Report

Market Cap: US$1.8b

Patterson Companies Valuation

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

Below Fair Value: PDCO ($20.06) is trading below our estimate of fair value ($77.64)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for PDCO. This is calculated by dividing PDCO's market cap by their current earnings.
What is PDCO's PE Ratio?
PE Ratio10.5x
EarningsUS$168.41m
Market CapUS$1.80b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for PDCO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.7x
HSIC Henry Schein
29.3x26.7%US$9.3b
CAH Cardinal Health
22.8x7.7%US$28.6b
COR Cencora
31.6x14.6%US$47.2b
NHC National HealthCare
15.3xn/aUS$1.9b
PDCO Patterson Companies
10.5x8.4%US$1.8b

Price-To-Earnings vs Peers: PDCO is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

How does PDCO's PE Ratio compare vs other companies in the US Healthcare Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC Tenet Healthcare
4.6x-39.2%US$14.58b
NEUE NeueHealth
1.5xn/aUS$40.77m
AMS American Shared Hospital Services
4.9xn/aUS$19.08m
IDXG Interpace Biosciences
2.4xn/aUS$11.77m
PDCO 10.5xIndustry Avg. 25.8xNo. of Companies11PE020406080100+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PDCO is good value based on its Price-To-Earnings Ratio (10.5x) compared to the US Healthcare industry average (25.2x).

Price to Earnings Ratio vs Fair Ratio

What is PDCO'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.

PDCO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ratio23.3x

Price-To-Earnings vs Fair Ratio: PDCO is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (23.3x).

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 PDCO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$20.06
US$26.30
+31.1%
8.5%US$30.00US$22.00n/a10
Nov ’25US$20.85
US$26.30
+26.1%
8.5%US$30.00US$22.00n/a10
Oct ’25US$21.08
US$26.40
+25.2%
7.8%US$30.00US$23.00n/a10
Sep ’25US$22.49
US$26.70
+18.7%
7.1%US$30.00US$23.00n/a10
Aug ’25US$25.29
US$28.30
+11.9%
6.7%US$31.00US$25.00n/a10
Jul ’25US$24.08
US$28.64
+18.9%
5.6%US$31.00US$26.00n/a11
Jun ’25US$24.59
US$29.27
+19.0%
5.8%US$32.00US$26.00n/a11
May ’25US$25.45
US$29.73
+16.8%
6.4%US$34.00US$27.00n/a11
Apr ’25US$27.07
US$29.82
+10.2%
6.0%US$34.00US$28.00n/a11
Mar ’25US$27.35
US$29.91
+9.4%
6.1%US$34.00US$28.00n/a11
Feb ’25US$30.08
US$31.00
+3.1%
6.9%US$35.00US$28.00n/a10
Jan ’25US$28.45
US$31.00
+9.0%
9.0%US$37.00US$27.00n/a10
Dec ’24US$26.67
US$31.70
+18.9%
8.9%US$37.00US$27.00n/a10
Nov ’24US$30.89
US$35.10
+13.6%
8.1%US$40.00US$32.00US$20.8510
Oct ’24US$29.64
US$35.50
+19.8%
7.5%US$40.00US$32.00US$21.0810
Sep ’24US$30.23
US$35.73
+18.2%
7.4%US$40.00US$32.00US$22.4911
Aug ’24US$33.08
US$35.18
+6.4%
8.5%US$40.00US$31.00US$25.2911
Jul ’24US$33.26
US$35.18
+5.8%
8.5%US$40.00US$31.00US$24.0811
Jun ’24US$26.27
US$31.59
+20.3%
9.6%US$36.00US$27.50US$24.5911
May ’24US$27.30
US$31.59
+15.7%
9.6%US$36.00US$27.50US$25.4511
Apr ’24US$26.77
US$31.59
+18.0%
9.6%US$36.00US$27.50US$27.0711
Mar ’24US$27.02
US$32.50
+20.3%
8.7%US$37.00US$29.00US$27.3511
Feb ’24US$30.53
US$32.95
+7.9%
11.4%US$42.00US$29.00US$30.0811
Jan ’24US$28.03
US$33.05
+17.9%
11.3%US$42.00US$29.00US$28.4511
Dec ’23US$28.73
US$32.32
+12.5%
11.6%US$39.00US$26.00US$26.6711
Nov ’23US$27.09
US$31.82
+17.5%
11.9%US$37.00US$26.00US$30.8911

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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