NYSE
THC
Last Price
US $187.08
KEY FIGURES
MKT CAP
$16.3B
EPS
TTM
$19.62
PEG
TTM
N/M
P/E
TTM
9.75x
P/S
TTM
0.76x
YIELD
0.00%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
40.55%
Return on equity
ROIC: 11.53%
Valuation History
9.8X
Price to Earnings
EV/EBITDA: 5.4X
Cash flow
Profit margin
3.85%
(FY vs FY)
EBITDA Y/Y
12.12%
(FY vs FY)
Cash flow Y/Y
-2.47%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $187.08
-0.66%
Default assumptions
EBITDA Multiple
Fair Value
Market $187.08
20.59%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Tenet Healthcare Corporation cash flow to debt ratio of 26.88% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Tenet Healthcare Corporation's free cash flow has increased 126.70% from $1.12G last year to $2.53G, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Tenet Healthcare Corporation's debt to equity ratio is 2.74, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Tenet Healthcare Corporation's debt has decreased relative to shareholder equity from 3.43 last year to 2.74 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Tenet Healthcare Corporation has a net debt to EBITDA ratio of 2.29x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Tenet Healthcare Corporation's interest coverage ratio of 4.21 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Tenet Healthcare Corporation's profit margin has decreased (-48.74%) in the last year from 15.49% to 7.94%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Tenet Healthcare Corporation's short-term assets of $7.85G exceed its short-term liabilities of $4.46G
Increasing performance - ROA.
Tenet Healthcare Corporation's return on assets of 5.46% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Tenet Healthcare Corporation's return on equity of 40.55%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Tenet Healthcare Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Tenet Healthcare Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Tenet Healthcare Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Tenet Healthcare Corporation has a free cash flow yield of 15.54%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Tenet Healthcare Corporation's yearly earnings has decreased -56.03% since last year from $3.20G to $1.41G, signaling decreasing performance
Increasing performance - Healthy revenue growth.
Tenet Healthcare Corporation's yearly revenue has increased 3.12% since last year from $20.66G to $21.31G, signaling increasing performance
Increasing performance - ROIC.
ROIC 11.53% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Tenet Healthcare Corporation's 3-year revenue CAGR of 3.58% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Tenet Healthcare Corporation had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Tenet Healthcare Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Tenet Healthcare Corporation is overvalued relative to its fair value price of 185.84 based on Discounted Cash Flow model
Undervalued - Earnings yield.
Tenet Healthcare Corporation has an earnings yield of 10.38%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Undervalued - EBITDA valuation.
Tenet Healthcare Corporation is undervalued relative to its fair value price of 225.60 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Tenet Healthcare Corporation has an EV/EBITDA ratio of 5.44x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Tenet Healthcare Corporation has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Tenet Healthcare Corporation has a price-to-book ratio of 3.41x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Tenet Healthcare Corporation has a price-to-sales ratio of 0.76x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue