We’ve recently updated our valuation analysis.

Netcare Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 NTC?

Other financial metrics that can be useful for relative valuation.

NTC 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/EBITDA10x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NTC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.8x
LHC Life Healthcare Group Holdings
16.3x16.5%R25.0b
RHK RHÖN-KLINIKUM
32.9x7.9%€987.3m
USPH U.S. Physical Therapy
31x4.1%US$1.2b
KPJ KPJ Healthcare Berhad
34.9x17.6%RM4.3b
NTC Netcare
20.2x25.0%R19.7b

Price-To-Earnings vs Peers: NTC is good value based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (28.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.6%
n/an/an/a

Price-To-Earnings vs Industry: NTC is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the Global Healthcare industry average (19.3x)


Price to Earnings Ratio vs Fair Ratio

What is NTC'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.

NTC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.2x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: NTC is expensive based on its Price-To-Earnings Ratio (20.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).


Share Price vs Fair Value

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

Below Fair Value: NTC (ZAR14.75) is trading above our estimate of fair value (ZAR11.95)

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


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 NTC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR14.75
R16.91
+14.7%
5.3%R18.00R15.00n/a8
Jan ’24R14.50
R16.86
+16.3%
3.8%R17.90R15.60n/a8
Dec ’23R14.07
R16.93
+20.3%
3.7%R17.90R15.60n/a8
Nov ’23R15.42
R16.97
+10.0%
3.7%R17.66R15.60n/a7
Oct ’23R13.72
R16.74
+22.0%
5.3%R17.66R15.20n/a7
Sep ’23R14.52
R16.58
+14.2%
5.2%R17.50R15.20n/a6
Aug ’23R15.32
R16.58
+8.2%
5.2%R17.50R15.20n/a6
Jul ’23R13.80
R16.38
+18.7%
4.6%R17.20R15.20n/a6
Jun ’23R15.12
R16.63
+10.0%
5.1%R18.00R15.60n/a6
May ’23R15.25
R17.29
+13.3%
8.5%R20.40R15.70n/a7
Apr ’23R15.99
R17.14
+7.2%
8.4%R20.40R15.70n/a7
Mar ’23R14.98
R17.17
+14.6%
8.3%R20.40R15.90n/a7
Feb ’23R15.26
R17.17
+12.5%
8.3%R20.40R15.90n/a7
Jan ’23R15.88
R17.17
+8.1%
8.3%R20.40R15.90R14.507
Dec ’22R14.71
R17.36
+18.0%
8.2%R20.40R15.90R14.077
Nov ’22R16.91
R17.45
+3.2%
4.8%R18.90R15.90R15.428
Oct ’22R16.61
R17.03
+2.5%
5.7%R18.90R15.90R13.726
Sep ’22R16.98
R16.93
-0.3%
6.4%R18.90R15.50R14.526
Aug ’22R15.24
R16.72
+9.7%
8.0%R18.90R14.90R15.325
Jul ’22R14.20
R17.43
+22.8%
11.5%R21.00R14.90R13.806
Jun ’22R15.50
R17.15
+10.6%
12.4%R21.00R14.90R15.126
May ’22R15.06
R16.87
+12.0%
13.1%R21.00R14.00R15.256
Apr ’22R14.14
R16.87
+19.3%
13.1%R21.00R14.00R15.996
Mar ’22R14.36
R16.32
+13.6%
8.4%R18.10R14.00R14.986
Feb ’22R13.24
R15.94
+20.4%
10.4%R18.10R13.85R15.266
Jan ’22R12.50
R16.44
+31.5%
11.7%R19.00R13.85R15.886

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


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