Tenet Healthcare Corporation

NYSE:THC Stock Report

Mkt Cap: US$5.6b

We’ve recently updated our valuation analysis.

Tenet Healthcare Valuation

Is THC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

THC 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/Revenue1.2x
Enterprise Value/EBITDA6.8x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for THC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.3x
EHC Encompass Health
17.8x12.2%US$6.2b
ENSG Ensign Group
23.8x12.3%US$5.1b
ACHC Acadia Healthcare Company
27.2x12.0%US$7.7b
SEM Select Medical Holdings
20.6x23.3%US$3.6b
THC Tenet Healthcare
10x15.4%US$5.6b

Price-To-Earnings vs Peers: THC is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (22.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.1%
n/an/an/a

Price-To-Earnings vs Industry: THC is good value based on its Price-To-Earnings Ratio (10x) compared to the US Healthcare industry average (20.8x)


Price to Earnings Ratio vs Fair Ratio

What is THC'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.

THC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio30.4x

Price-To-Earnings vs Fair Ratio: THC is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (30.4x).


Share Price vs Fair Value

What is the Fair Price of THC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: THC ($51.66) is trading below our estimate of fair value ($67.91)

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


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 THC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$51.66
US$67.00
+29.7%
23.6%US$95.00US$40.00n/a16
Jan ’24US$48.79
US$64.59
+32.4%
26.1%US$95.00US$40.00n/a17
Dec ’23US$45.35
US$64.59
+42.4%
26.1%US$95.00US$40.00n/a17
Nov ’23US$45.65
US$65.76
+44.1%
26.1%US$95.00US$40.00n/a17
Oct ’23US$51.58
US$94.00
+82.2%
17.0%US$135.00US$73.00n/a17
Sep ’23US$56.37
US$94.24
+67.2%
16.9%US$135.00US$73.00n/a17
Aug ’23US$65.64
US$91.72
+39.7%
19.4%US$135.00US$58.00n/a18
Jul ’23US$55.00
US$98.50
+79.1%
16.6%US$125.00US$63.00n/a18
Jun ’23US$63.11
US$102.94
+63.1%
11.1%US$125.00US$82.00n/a17
May ’23US$72.51
US$105.24
+45.1%
10.0%US$125.00US$88.00n/a17
Apr ’23US$86.75
US$101.11
+16.6%
13.1%US$125.00US$66.00n/a18
Mar ’23US$88.11
US$99.53
+13.0%
14.1%US$121.00US$66.00n/a17
Feb ’23US$74.64
US$92.19
+23.5%
15.3%US$120.00US$66.00n/a16
Jan ’23US$81.69
US$87.13
+6.7%
14.4%US$120.00US$66.00US$48.7916
Dec ’22US$70.52
US$86.75
+23.0%
14.6%US$120.00US$66.00US$45.3516
Nov ’22US$71.49
US$84.53
+18.2%
14.8%US$115.00US$60.00US$45.6517
Oct ’22US$68.82
US$83.41
+21.2%
14.8%US$115.00US$55.00US$51.5817
Sep ’22US$74.99
US$82.47
+10.0%
13.2%US$100.00US$55.00US$56.3715
Aug ’22US$71.84
US$81.00
+12.8%
15.1%US$100.00US$55.00US$65.6415
Jul ’22US$67.92
US$71.85
+5.8%
18.9%US$90.00US$37.00US$55.0013
Jun ’22US$68.51
US$66.50
-2.9%
19.7%US$89.00US$37.00US$63.1114
May ’22US$59.26
US$62.38
+5.3%
16.9%US$80.00US$37.00US$72.5113
Apr ’22US$51.19
US$56.14
+9.7%
13.9%US$69.00US$37.00US$86.7514
Mar ’22US$52.88
US$54.33
+2.7%
18.7%US$69.00US$29.00US$88.1115
Feb ’22US$50.72
US$49.63
-2.2%
23.2%US$69.00US$20.00US$74.6416
Jan ’22US$39.93
US$41.71
+4.4%
27.8%US$69.00US$20.00US$81.6917

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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