RadNet (RDNT): Valuation Perspective After Record Q3 Results and Upgraded 2025 Guidance

RadNet (RDNT) delivered a standout third quarter, announcing record revenue and adjusted EBITDA. This performance was driven by impressive gains in advanced imaging and digital health, especially from its recent AI-focused acquisitions. The company also raised its 2025 guidance, highlighting a strong outlook.

See our latest analysis for RadNet.

RadNet’s recent string of upbeat earnings, new AI-driven partnerships, and raised guidance has been accompanied by a steadily climbing share price, up 11.4% over the past three months despite a slightly negative 1-year total shareholder return. While long-term investors have seen dramatic gains—RadNet’s three-year total shareholder return stands at an impressive 351%—momentum is notably building again as digital health and imaging growth stories pick up steam.

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But with RadNet hitting record highs and lifting its guidance, investors are left to wonder: Is the stock still undervalued after its rapid run, or has the market already priced in the next leg of growth?

Most Popular Narrative: 13% Undervalued

With RadNet’s fair value pegged at $86.67 by the most widely followed narrative and a recent close of $75.15, analysts see considerable upside even as the stock’s advance continues. Investors are tuning into why this difference in valuation exists, especially with fresh guidance and stronger market positioning in play.

Ongoing investments in AI-powered imaging solutions (e.g., DeepHealth, See-Mode, iCAD) are materially increasing center throughput, boosting capacity utilization, and driving more high-margin advanced procedures. This is directly enhancing both revenue growth and EBITDA margins as adoption scales through 2026.

Read the complete narrative.

Want to know the secret sauce behind this bullish narrative? The valuation hinges on ambitious profit margin expansion and bold growth forecasts. These are numbers that could reshape expectations for years to come. If you’re curious which financial leaps are baked into this upside, the full narrative breaks down every high-conviction projection fueling the target price.

Result: Fair Value of $86.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, including heavy ongoing investments in AI and potential reimbursement headwinds. These factors could limit margin expansion if demand softens.

Find out about the key risks to this RadNet narrative.

Another View: Peer Comparisons Suggest a Premium

Looking at valuation through the lens of sales, RadNet trades at 2.9 times its revenue. This is significantly higher than both its peers (2.0x) and the broader US Healthcare sector (1.3x). The market is asking for a premium, which raises questions about valuation risk if expectations cool. Could this premium persist as growth slows?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own RadNet Narrative

If you want to dig deeper and put your own spin on the numbers, you can easily craft your take in just minutes. Do it your way.

A great starting point for your RadNet research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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