THC Valuation

Tenet Healthcare Corp

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194.060

+3.92(2.062%)1D

Overview
Forecast
Valuation
Earnings

THC Relative Valuation

THC'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, THC is overvalued; if below, it's undervalued.

Historical Valuation

Tenet Healthcare Corp (THC) is now in the Fair zone, suggesting that its current forward PE ratio of 12.25 is considered Fairly compared with the five-year average of 11.44. The fair price of Tenet Healthcare Corp (THC) is between 176.72 to 234.54 according to relative valuation methord.

Relative Value

Fair Zone

176.72-234.54

Current Price：194.06

Fair

12.25

Trailing

Forward

7.17

EV/EBITDA

Tenet Healthcare Corp. (THC) has a current EV/EBITDA of 7.17. The 5-year average EV/EBITDA is 7.04. The thresholds are as follows: Strongly Undervalued below 6.06, Undervalued between 6.06 and 6.55, Fairly Valued between 7.53 and 6.55, Overvalued between 7.53 and 8.02, and Strongly Overvalued above 8.02. The current Forward EV/EBITDA of 7.17 falls within the Historic Trend Line -Fairly Valued range.

8.80

EV/EBIT

Tenet Healthcare Corp. (THC) has a current EV/EBIT of 8.80. The 5-year average EV/EBIT is 9.34. The thresholds are as follows: Strongly Undervalued below 7.95, Undervalued between 7.95 and 8.64, Fairly Valued between 10.04 and 8.64, Overvalued between 10.04 and 10.74, and Strongly Overvalued above 10.74. The current Forward EV/EBIT of 8.80 falls within the Historic Trend Line -Fairly Valued range.

0.78

Tenet Healthcare Corp. (THC) has a current PS of 0.78. The 5-year average PS is 0.43. The thresholds are as follows: Strongly Undervalued below 0.10, Undervalued between 0.10 and 0.26, Fairly Valued between 0.59 and 0.26, Overvalued between 0.59 and 0.76, and Strongly Overvalued above 0.76. The current Forward PS of 0.78 falls within the Strongly Overvalued range.

5.37

P/OCF

Tenet Healthcare Corp. (THC) has a current P/OCF of 5.37. The 5-year average P/OCF is 4.99. The thresholds are as follows: Strongly Undervalued below 0.25, Undervalued between 0.25 and 2.62, Fairly Valued between 7.36 and 2.62, Overvalued between 7.36 and 9.73, and Strongly Overvalued above 9.73. The current Forward P/OCF of 5.37 falls within the Historic Trend Line -Fairly Valued range.

10.07

P/FCF

Tenet Healthcare Corp. (THC) has a current P/FCF of 10.07. The 5-year average P/FCF is 8.67. The thresholds are as follows: Strongly Undervalued below -24.08, Undervalued between -24.08 and -7.71, Fairly Valued between 25.04 and -7.71, Overvalued between 25.04 and 41.42, and Strongly Overvalued above 41.42. The current Forward P/FCF of 10.07 falls within the Historic Trend Line -Fairly Valued range.

Tenet Healthcare Corp (THC) has a current Price-to-Book (P/B) ratio of 4.48. Compared to its 3-year average P/B ratio of 4.38 , the current P/B ratio is approximately 2.24% higher. Relative to its 5-year average P/B ratio of 17.23, the current P/B ratio is about -73.99% higher. Tenet Healthcare Corp (THC) has a Forward Free Cash Flow (FCF) yield of approximately 9.24%. Compared to its 3-year average FCF yield of 11.85%, the current FCF yield is approximately -22.00% lower. Relative to its 5-year average FCF yield of 20.22% , the current FCF yield is about -54.29% lower.

4.48

P/B

Median3y

4.38

Median5y

17.23

9.24

FCF Yield

Median3y

11.85

Median5y

20.22

Competitors Valuation Multiple

The average P/S ratio for THC's competitors is 1.06, providing a benchmark for relative valuation. Tenet Healthcare Corp Corp (THC) exhibits a P/S ratio of 0.78, which is -26.13% above the industry average. Given its robust revenue growth of 3.29%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

THC.N

Tenet Healthcare Corp

Universal Health Services Inc

Brookdale Senior Living Inc

0.60

4.55%

1.97B

Performance Decomposition

Market capitalization of THC increased by 14.40% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 9.35 to 9.90.

The secondary factor is the P/E Change, contributed 5.23%to the performance.

Overall, the performance of THC in the past 1 year is driven by Margin Expansion. Which is more sustainable.

3.29%

5.10B → 5.27B

Revenue Growth

5.88%

9.35 → 9.90

Margin Expansion

5.23%

11.54 → 12.15

P/E Change

14.40%