Select Medical Holdings Corporation

NYSE:SEM Stock Report

Market Cap: US$4.7b

Select Medical Holdings Valuation

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

Below Fair Value: SEM ($35.95) is trading below our estimate of fair value ($158.86)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SEM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA11.5x
PEG Ratio3.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.5x
ACHC Acadia Healthcare Company
13.9x13.0%US$3.9b
PACS PACS Group
72.2x48.3%US$6.7b
CON Concentra Group Holdings Parent
14.7x4.4%US$2.5b
ARDT Ardent Health Partners
29.2x30.3%US$2.5b
SEM Select Medical Holdings
17.5x5.7%US$4.7b

Price-To-Earnings vs Peers: SEM is good value based on its Price-To-Earnings Ratio (17.5x) compared to the peer average (32.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: SEM is good value based on its Price-To-Earnings Ratio (17.5x) compared to the US Healthcare industry average (23.9x).


Price to Earnings Ratio vs Fair Ratio

What is SEM'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.

SEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.5x
Fair PE Ratio24.7x

Price-To-Earnings vs Fair Ratio: SEM is good value based on its Price-To-Earnings Ratio (17.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.7x).


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 SEM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$35.95
US$44.00
+22.4%
9.5%US$50.00US$40.00n/a5
Oct ’25US$34.06
US$43.40
+27.4%
11.3%US$50.00US$37.00n/a5
Sep ’25US$36.07
US$43.40
+20.3%
11.3%US$50.00US$37.00n/a5
Aug ’25US$39.18
US$40.67
+3.8%
14.1%US$48.00US$34.00n/a3
Jul ’25US$35.57
US$39.00
+9.6%
7.7%US$42.00US$34.00n/a4
Jun ’25US$34.55
US$39.00
+12.9%
7.7%US$42.00US$34.00n/a4
May ’25US$27.98
US$35.80
+27.9%
9.6%US$40.00US$31.00n/a5
Apr ’25US$29.73
US$35.80
+20.4%
9.6%US$40.00US$31.00n/a5
Mar ’25US$27.13
US$35.30
+30.1%
11.9%US$40.00US$28.50n/a5
Feb ’25US$26.85
US$33.30
+24.0%
15.3%US$40.00US$28.50n/a5
Jan ’25US$23.50
US$32.20
+37.0%
15.4%US$39.00US$26.00n/a5
Dec ’24US$23.45
US$32.20
+37.3%
15.4%US$39.00US$26.00n/a5
Nov ’24US$22.56
US$37.50
+66.2%
3.0%US$39.00US$36.00US$35.954
Oct ’24US$25.27
US$37.50
+48.4%
3.0%US$39.00US$36.00US$34.064
Sep ’24US$29.06
US$36.40
+25.3%
6.6%US$39.00US$32.00US$36.075
Aug ’24US$29.92
US$35.80
+19.7%
9.9%US$39.00US$29.00US$39.185
Jul ’24US$31.86
US$35.80
+12.4%
9.9%US$39.00US$29.00US$35.575
Jun ’24US$27.65
US$35.80
+29.5%
9.9%US$39.00US$29.00US$34.555
May ’24US$30.18
US$33.20
+10.0%
10.5%US$39.00US$29.00US$27.985
Apr ’24US$25.85
US$33.20
+28.4%
10.5%US$39.00US$29.00US$29.735
Mar ’24US$27.03
US$33.20
+22.8%
10.5%US$39.00US$29.00US$27.135
Feb ’24US$29.69
US$32.00
+7.8%
15.7%US$39.00US$24.00US$26.855
Jan ’24US$24.83
US$31.60
+27.3%
16.6%US$39.00US$24.00US$23.505
Dec ’23US$24.73
US$31.60
+27.8%
16.6%US$39.00US$24.00US$23.455
Nov ’23US$26.13
US$35.40
+35.5%
16.8%US$44.00US$27.00US$22.565

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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