Life Healthcare Group Holdings Limited

JSE:LHC Stock Report

Market Cap: R24.7b

Life Healthcare Group Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: LHC (ZAR17.24) is trading above our estimate of fair value (ZAR9.41)

Significantly Below Fair Value: LHC is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LHC. This is calculated by dividing LHC's market cap by their current earnings.
What is LHC's PE Ratio?
PE Ratio17.6x
EarningsR1.41b
Market CapR24.73b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LHC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33x
NTC Netcare
14.9x18.2%R19.0b
BSL Raffles Medical Group
26.2x12.6%S$1.6b
JLHL Jupiter Life Line Hospitals
54.6x18.6%₹97.7b
HEAL Medikaloka Hermina
36.4x15.0%Rp20.3t
LHC Life Healthcare Group Holdings
17.6x13.9%R24.7b

Price-To-Earnings vs Peers: LHC is good value based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (33x).

Price to Earnings Ratio vs Industry

How does LHC's PE Ratio compare vs other companies in the Global Healthcare Industry?

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LHC 17.6xIndustry Avg. 20.6xNo. of Companies78PE01632486480+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LHC is good value based on its Price-To-Earnings Ratio (17.6x) compared to the Global Healthcare industry average (20.6x).

Price to Earnings Ratio vs Fair Ratio

What is LHC'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.

LHC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.6x
Fair PE Ratio15.8x

Price-To-Earnings vs Fair Ratio: LHC is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (15.8x).

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 LHC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR17.24
R14.66
-15.0%
16.1%R18.90R11.80n/a6
Nov ’25R16.14
R13.12
-18.7%
7.5%R14.50R11.80n/a6
Oct ’25R16.60
R13.12
-21.0%
7.5%R14.50R11.80n/a6
Sep ’25R14.37
R13.12
-8.7%
7.5%R14.50R11.80n/a6
Aug ’25R13.33
R13.10
-1.7%
7.0%R14.50R11.80n/a7
Jul ’25R12.93
R13.66
+5.7%
11.8%R16.90R11.80n/a7
Jun ’25R11.07
R16.61
+50.0%
20.6%R21.50R12.00n/a6
May ’25R10.76
R18.12
+68.4%
13.6%R21.50R13.63n/a7
Apr ’25R17.19
R19.18
+11.6%
9.4%R21.50R16.33n/a7
Mar ’25R17.60
R20.02
+13.7%
13.8%R24.40R16.33n/a7
Feb ’25R17.98
R20.02
+11.3%
13.8%R24.40R16.33n/a7
Jan ’25R18.37
R20.13
+9.6%
13.7%R24.40R16.33n/a7
Dec ’24R18.05
R21.36
+18.4%
12.5%R24.40R16.90n/a7
Nov ’24R18.75
R22.28
+18.8%
8.1%R24.40R20.05R16.147
Oct ’24R20.26
R21.95
+8.3%
7.5%R24.40R20.05R16.607
Sep ’24R21.45
R21.54
+0.4%
6.5%R24.00R20.05R14.376
Aug ’24R20.80
R21.54
+3.6%
6.5%R24.00R20.05R13.336
Jul ’24R20.55
R20.93
+1.8%
8.0%R24.00R18.70R12.936
Jun ’24R19.15
R20.42
+6.6%
8.2%R24.00R18.70R11.076
May ’24R20.74
R20.18
-2.7%
5.8%R22.50R18.70R10.766
Apr ’24R19.29
R20.17
+4.5%
5.8%R22.50R18.70R17.196
Mar ’24R19.69
R20.91
+6.2%
10.1%R25.34R18.70R17.607
Feb ’24R17.00
R21.17
+24.5%
10.1%R25.50R18.70R17.987
Jan ’24R16.88
R22.43
+32.9%
10.5%R26.00R19.50R18.377
Dec ’23R16.55
R22.43
+35.5%
10.5%R26.00R19.50R18.057
Nov ’23R19.35
R22.55
+16.5%
10.7%R26.00R18.75R18.757

Analyst Forecast: Target price is lower than the current share price.

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