Sonic Healthcare Limited

OTCPK:SKHC.F Stock Report

Market Cap: US$8.3b

Sonic Healthcare Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 SKHC.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SKHC.F ($16) is trading below our estimate of fair value ($44.23)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SKHC.F?

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

The above table shows the Price to Earnings ratio for SKHC.F. This is calculated by dividing SKHC.F's market cap by their current earnings.
What is SKHC.F's PE Ratio?
PE Ratio25.9x
EarningsAU$511.09m
Market CapAU$13.23b

Price to Earnings Ratio vs Peers

How does SKHC.F's PE Ratio compare to its peers?

The above table shows the PE ratio for SKHC.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.6x
CHE Chemed
25.7x8.8%US$7.8b
DVA DaVita
15.4x4.3%US$12.7b
CRVL CorVel
73xn/aUS$6.0b
DGX Quest Diagnostics
20.4x11.7%US$17.1b
SKHC.F Sonic Healthcare
25.9x12.1%US$13.2b

Price-To-Earnings vs Peers: SKHC.F is good value based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (33.6x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
THC Tenet Healthcare
3.9x-39.2%US$12.34b
NEUE NeueHealth
2.2xn/aUS$62.23m
IDXG Interpace Biosciences
2.5xn/aUS$12.46m
FZMD Fuse Medical
2.2xn/aUS$8.67m
SKHC.F 25.9xIndustry Avg. 22.0xNo. of Companies10PE01632486480+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SKHC.F is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the US Healthcare industry average (22x).

Price to Earnings Ratio vs Fair Ratio

What is SKHC.F'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.

SKHC.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.9x
Fair PE Ratio36.1x

Price-To-Earnings vs Fair Ratio: SKHC.F is good value based on its Price-To-Earnings Ratio (25.9x) compared to the estimated Fair Price-To-Earnings Ratio (36.1x).

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 SKHC.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$16.00
US$18.06
+12.9%
10.1%US$20.64US$14.81n/a14
Dec ’25US$17.95
US$18.14
+1.1%
10.3%US$21.04US$15.47n/a14
Nov ’25US$17.42
US$18.68
+7.2%
10.7%US$21.90US$15.98n/a14
Oct ’25US$19.03
US$18.43
-3.2%
10.6%US$21.59US$15.87n/a14
Sep ’25US$17.91
US$18.69
+4.4%
10.7%US$21.89US$16.09n/a14
Aug ’25US$16.95
US$17.40
+2.6%
10.2%US$20.82US$14.64n/a14
Jul ’25US$17.70
US$17.96
+1.5%
9.5%US$21.17US$14.89n/a15
Jun ’25US$16.57
US$17.96
+8.4%
9.5%US$21.17US$14.89n/a15
May ’25US$17.16
US$19.84
+15.6%
9.4%US$22.63US$16.81n/a15
Apr ’25US$18.82
US$20.22
+7.5%
9.0%US$23.01US$17.09n/a15
Mar ’25US$19.30
US$19.88
+3.0%
8.9%US$22.12US$16.86n/a15
Feb ’25US$20.94
US$22.07
+5.4%
7.3%US$24.43US$19.67n/a14
Jan ’25US$22.27
US$22.25
-0.1%
8.9%US$26.14US$19.44n/a15
Dec ’24US$19.13
US$21.65
+13.2%
10.1%US$25.58US$18.00US$17.9516
Nov ’24US$17.80
US$21.70
+21.9%
10.3%US$25.43US$17.45US$17.4216
Oct ’24US$19.08
US$22.02
+15.4%
10.1%US$25.75US$17.66US$19.0316
Sep ’24US$21.29
US$21.96
+3.2%
9.9%US$25.62US$17.57US$17.9117
Aug ’24US$23.73
US$23.55
-0.8%
10.8%US$28.43US$18.14US$16.9517
Jul ’24US$23.32
US$23.30
-0.08%
10.3%US$27.06US$18.11US$17.7017
Jun ’24US$23.17
US$23.40
+1.0%
11.4%US$28.59US$18.24US$16.5717
May ’24US$23.93
US$23.64
-1.2%
9.4%US$28.45US$19.85US$17.1615
Apr ’24US$22.86
US$23.02
+0.7%
10.9%US$27.50US$17.27US$18.8216
Mar ’24US$22.32
US$23.10
+3.5%
11.1%US$27.70US$17.39US$19.3016
Feb ’24US$21.95
US$23.72
+8.1%
10.8%US$30.21US$18.09US$20.9415
Jan ’24US$20.63
US$22.95
+11.2%
10.7%US$29.03US$17.38US$22.2715
Dec ’23US$21.35
US$23.11
+8.3%
11.2%US$28.97US$17.35US$19.1315

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/24 08:50
End of Day Share Price 2024/12/24 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

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

Sonic Healthcare Limited is covered by 31 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Dennis HulmeAPP Securities Pty Ltd.
Russell WrightBarclay Pearce Capital Pty Limited
Benjamin BrayshawBarrenjoey Markets Pty Limited