Tenet Healthcare Corporation

NYSE:THC Stock Report

Market Cap: US$12.0b

Tenet Healthcare Valuation

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

Below Fair Value: THC ($129.46) is trading below our estimate of fair value ($468.62)

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

Key Valuation Metric

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

Key metric: As THC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for THC. This is calculated by dividing THC's market cap by their current earnings.
What is THC's PE Ratio?
PE Ratio3.9x
EarningsUS$3.13b
Market CapUS$11.95b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.5x
UHS Universal Health Services
11.6x8.3%US$11.6b
EHC Encompass Health
22.1x9.6%US$9.5b
ENSG Ensign Group
31.9x18.1%US$7.7b
ACHC Acadia Healthcare Company
12.5x10.6%US$3.6b
THC Tenet Healthcare
3.9x-39.2%US$12.0b

Price-To-Earnings vs Peers: THC is good value based on its Price-To-Earnings Ratio (3.9x) compared to the peer average (19.5x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.21.9x20.7%
THC Tenet Healthcare
 3.9x-39.2%US$11.95b
NEUE NeueHealth
1.1xn/aUS$32.60m
IDXG Interpace Biosciences
2.6xn/aUS$11.71m
THC 3.9xIndustry Avg. 21.9xNo. of Companies10PE01632486480+
5 CompaniesEstimated GrowthMarket Cap
Industry Avg.21.9x20.7%
THC Tenet Healthcare
 3.9x-39.2%US$11.95b
No more companies

Price-To-Earnings vs Industry: THC is good value based on its Price-To-Earnings Ratio (3.9x) compared to the US Healthcare industry average (21.1x).

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 Ratio3.9x
Fair PE Ratio11.9x

Price-To-Earnings vs Fair Ratio: THC is good value based on its Price-To-Earnings Ratio (3.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.9x).

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$129.46
US$179.46
+38.6%
11.3%US$217.00US$140.00n/a20
Dec ’25US$142.68
US$182.46
+27.9%
10.3%US$217.00US$140.00n/a20
Nov ’25US$156.13
US$182.80
+17.1%
9.5%US$217.00US$140.00n/a20
Oct ’25US$162.87
US$172.35
+5.8%
8.5%US$197.00US$128.00n/a20
Sep ’25US$165.84
US$171.35
+3.3%
8.1%US$197.00US$128.00n/a20
Aug ’25US$147.95
US$166.43
+12.5%
8.8%US$190.00US$128.00n/a20
Jul ’25US$133.30
US$141.93
+6.5%
11.1%US$165.00US$104.00n/a20
Jun ’25US$135.22
US$133.37
-1.4%
14.4%US$165.00US$85.00n/a19
May ’25US$115.95
US$124.42
+7.3%
13.7%US$165.00US$85.00n/a19
Apr ’25US$104.39
US$108.67
+4.1%
9.8%US$137.00US$85.00n/a18
Mar ’25US$94.29
US$105.94
+12.4%
9.8%US$137.00US$85.00n/a16
Feb ’25US$89.11
US$90.69
+1.8%
8.0%US$105.00US$75.00n/a16
Jan ’25US$75.57
US$83.81
+10.9%
11.2%US$95.00US$64.00n/a16
Dec ’24US$71.01
US$81.63
+14.9%
11.8%US$95.00US$64.00US$142.6816
Nov ’24US$53.09
US$84.81
+59.8%
11.5%US$98.00US$68.00US$156.1316
Oct ’24US$65.89
US$94.00
+42.7%
6.6%US$105.00US$83.00US$162.8717
Sep ’24US$78.70
US$92.72
+17.8%
7.4%US$105.00US$76.00US$165.8418
Aug ’24US$76.78
US$90.89
+18.4%
8.2%US$105.00US$76.00US$147.9518
Jul ’24US$81.38
US$87.78
+7.9%
8.3%US$105.00US$76.00US$133.3018
Jun ’24US$72.55
US$86.33
+19.0%
8.4%US$105.00US$76.00US$135.2218
May ’24US$72.28
US$84.39
+16.8%
9.2%US$105.00US$72.00US$115.9518
Apr ’24US$59.42
US$73.59
+23.8%
13.2%US$95.00US$60.00US$104.3917
Mar ’24US$59.55
US$73.59
+23.6%
13.2%US$95.00US$60.00US$94.2917
Feb ’24US$56.76
US$66.59
+17.3%
23.2%US$95.00US$40.00US$89.1117
Jan ’24US$48.79
US$64.59
+32.4%
26.1%US$95.00US$40.00US$75.5717
Dec ’23US$45.35
US$64.59
+42.4%
26.1%US$95.00US$40.00US$71.0117

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 06:14
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Tenet Healthcare Corporation is covered by 45 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brian Kemp DolliverAvondale Partners
Hua HaBaird
Ishan MajumdarBaptista Research