HCA Valuation

HCA Healthcare Inc

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381.610

+8.28(2.218%)1D

Overview
Forecast
Valuation
Earnings

HCA Relative Valuation

HCA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HCA is overvalued; if below, it's undervalued.

Historical Valuation

HCA Healthcare Inc (HCA) is now in the Fair zone, suggesting that its current forward PE ratio of 13.91 is considered Fairly compared with the five-year average of 13.49. The fair price of HCA Healthcare Inc (HCA) is between 357.78 to 431.89 according to relative valuation methord.

Relative Value

Fair Zone

357.78-431.89

Current Price：381.61

Fair

13.91

Trailing

Forward

9.00

EV/EBITDA

HCA Healthcare Inc. (HCA) has a current EV/EBITDA of 9.00. The 5-year average EV/EBITDA is 8.78. The thresholds are as follows: Strongly Undervalued below 7.21, Undervalued between 7.21 and 8.00, Fairly Valued between 9.57 and 8.00, Overvalued between 9.57 and 10.35, and Strongly Overvalued above 10.35. The current Forward EV/EBITDA of 9.00 falls within the Historic Trend Line -Fairly Valued range.

11.74

EV/EBIT

HCA Healthcare Inc. (HCA) has a current EV/EBIT of 11.74. The 5-year average EV/EBIT is 11.63. The thresholds are as follows: Strongly Undervalued below 9.60, Undervalued between 9.60 and 10.61, Fairly Valued between 12.64 and 10.61, Overvalued between 12.64 and 13.65, and Strongly Overvalued above 13.65. The current Forward EV/EBIT of 11.74 falls within the Historic Trend Line -Fairly Valued range.

1.17

HCA Healthcare Inc. (HCA) has a current PS of 1.17. The 5-year average PS is 1.13. The thresholds are as follows: Strongly Undervalued below 0.83, Undervalued between 0.83 and 0.98, Fairly Valued between 1.27 and 0.98, Overvalued between 1.27 and 1.42, and Strongly Overvalued above 1.42. The current Forward PS of 1.17 falls within the Historic Trend Line -Fairly Valued range.

7.91

P/OCF

HCA Healthcare Inc. (HCA) has a current P/OCF of 7.91. The 5-year average P/OCF is 8.83. The thresholds are as follows: Strongly Undervalued below 0.56, Undervalued between 0.56 and 4.70, Fairly Valued between 12.97 and 4.70, Overvalued between 12.97 and 17.10, and Strongly Overvalued above 17.10. The current Forward P/OCF of 7.91 falls within the Historic Trend Line -Fairly Valued range.

12.03

P/FCF

HCA Healthcare Inc. (HCA) has a current P/FCF of 12.03. The 5-year average P/FCF is 10.60. The thresholds are as follows: Strongly Undervalued below -22.52, Undervalued between -22.52 and -5.96, Fairly Valued between 27.17 and -5.96, Overvalued between 27.17 and 43.73, and Strongly Overvalued above 43.73. The current Forward P/FCF of 12.03 falls within the Historic Trend Line -Fairly Valued range.

HCA Healthcare Inc (HCA) has a current Price-to-Book (P/B) ratio of -20.51. Compared to its 3-year average P/B ratio of -34.75 , the current P/B ratio is approximately -40.98% higher. Relative to its 5-year average P/B ratio of -23.49, the current P/B ratio is about -12.70% higher. HCA Healthcare Inc (HCA) has a Forward Free Cash Flow (FCF) yield of approximately 8.17%. Compared to its 3-year average FCF yield of 6.22%, the current FCF yield is approximately 31.20% lower. Relative to its 5-year average FCF yield of 7.59% , the current FCF yield is about 7.56% lower.

-20.51

P/B

Median3y

-34.75

Median5y

-23.49

8.17

FCF Yield

Median3y

6.22

Median5y

7.59

Competitors Valuation Multiple

The average P/S ratio for HCA's competitors is 1.27, providing a benchmark for relative valuation. HCA Healthcare Inc Corp (HCA) exhibits a P/S ratio of 1.17, which is -7.88% above the industry average. Given its robust revenue growth of 6.36%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Tenet Healthcare Corp

Universal Health Services Inc

Performance Decomposition

Market capitalization of HCA decreased by 3.53% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 17.49B to 18.61B.

The secondary factor is the Margin Expansion, contributed 5.39%to the performance.

Overall, the performance of HCA in the past 1 year is driven by Revenue Growth. Which is more sustainable.

6.36%

17.49B → 18.61B

Revenue Growth

5.39%

9.64 → 10.16

Margin Expansion

-15.28%

18.98 → 16.08

P/E Change

-3.53%