Surgery Partners (SGRY): Assessing Valuation After Recent 27% Share Price Drop

Surgery Partners (SGRY) shares slipped after recent trading sessions, catching the attention of investors interested in the healthcare sector. With movement over the past month, some are now looking closely at the underlying business fundamentals to gauge the company’s outlook.

See our latest analysis for Surgery Partners.

Surgery Partners’ share price has struggled lately, with a steep 27% drop over the past month weighing on already negative momentum. Looking at the bigger picture, the company’s one-year total shareholder return is down over 34%, and performance has lagged for several years, signaling a shift in market sentiment as investors assess its recovery prospects.

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With shares now trading at a significant discount to analyst targets, investors are left wondering whether Surgery Partners is undervalued and set for a rebound, or if the market is already factoring in all foreseeable growth.

Most Popular Narrative: 45.2% Undervalued

Compared to the last close price of $15.30, the most followed narrative suggests Surgery Partners could have significant upside based on a calculated fair value much higher than current levels. The story behind this valuation centers on core industry changes and company actions that are believed to reset the company’s growth trajectory.

The accelerated migration of high-acuity surgical procedures (particularly orthopedics and joint replacements) from hospitals to outpatient settings is strengthening, with Surgery Partners demonstrating outperformance through investments in robotics and facility capabilities. This positions the company to capitalize on expanding case volumes and higher-revenue procedures, directly supporting long-term revenue and EBITDA growth.

Read the complete narrative.

Want to know what kind of growth is needed to reach this price target? The core projection combines big jumps in profitability with aggressive revenue expansion. Analysts are betting on a market shift, ongoing investment in facility upgrades, and several key financial levers that could completely reset current valuation expectations. Curious what evidence drives this bullish fair value? The narrative reveals the numbers behind the optimism.

Result: Fair Value of $27.91 (UNDERVALUED)

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

However, rising debt costs and slower than expected acquisitions could weigh on margins and dampen confidence in the near-term rebound narrative for Surgery Partners.

Find out about the key risks to this Surgery Partners narrative.

Build Your Own Surgery Partners Narrative

If you see things differently or want to test your own assumptions, you can build a personal take on the data in just a few minutes with Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Surgery Partners.

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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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