A Look at DaVita's Valuation Following Q3 Profit Drop and Clinical Innovation Push

DaVita (DVA) just rolled out its third quarter report, showing profit and margin declines largely tied to lower treatment volumes following a tough flu season, Hurricane Helene, and a cyber incident. Management emphasized ongoing cost control and investment in clinical innovation. The company also announced new research initiatives at the American Society of Nephrology’s Kidney Week.

See our latest analysis for DaVita.

Despite a tough run in 2025, marked by weather disruptions, a flu surge, and a cyber event, DaVita’s management doubled down on buybacks and unveiled significant clinical research advances. While the share price currently sits at $123.69 and year-to-date price return shows a substantial decline, the longer-term total shareholder return over three years remains an impressive 72%, reflecting resilience even as recent momentum has faded.

If DaVita’s latest developments have you thinking about what else might be on the move in healthcare, check out See the full list for free.

With expectations muted and the stock still trading below analyst price targets, is DaVita an undervalued play for patient investors? Or has the market already factored in a rebound and future growth prospects?

Most Popular Narrative: 15.9% Undervalued

Compared to DaVita’s last close of $123.69, the most widely followed narrative assigns a fair value that is considerably higher, creating a notable disconnect for investors watching from the sidelines.

Ongoing investments in technology, AI, and data analytics are driving structural cost reductions through improved operational efficiency and enhanced clinical outcomes. Management expects these factors to support margin improvement even in periods of flat or negative volume growth.

Read the complete narrative.

Curious which bold bets are behind the bullish story? Analysts are banking on a turnaround that depends on margin expansion and top-line growth in a volatile healthcare environment. But what are the critical financial catalysts included in this target? Unlock the narrative to see exactly which numbers shift the dial.

Result: Fair Value of $147.13 (UNDERVALUED)

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

However, persistently high patient mortality rates and slower-than-expected uptake of clinical innovation could challenge DaVita’s growth and put pressure on long-term financial targets.

Find out about the key risks to this DaVita narrative.

Build Your Own DaVita Narrative

If you see things differently or prefer hands-on analysis, you can explore the numbers and shape your own perspective in just a few minutes. Do it your way.

A great starting point for your DaVita research is our analysis highlighting 3 key rewards 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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