American Renal Associates Holdings, Inc (ARA) Company Bio
American Renal Associates provides outpatient dialysis services in the United States. The company focuses on joint venture relationships with nephrologists. It offers services to hospitals that include dialysis patient discharge coordination; and acute inpatient dialysis services, such as inpatient hemodialysis, inpatient peritoneal dialysis, C.V.V.H., C.R.R.T., and apheresis. The company was founded in 1999 and is based in Beverly, Massachusetts.
ARA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for American Renal Associates Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that American Renal Associates Holdings Inc ranked in the 66th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 148.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for American Renal Associates Holdings Inc ended up being:
35% of the company's capital comes from equity, which is greater than merely 15.93% of stocks in our cash flow based forecasting set.
American Renal Associates Holdings Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 15. This value is greater than 94.84% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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American Renal Associates (ARA) to be acquired by Innovative Renal Care, an affiliate of Nautic Partners in an all-cash transaction for an aggregate enterprise valuation of ~$853M.ARA shareholders will receive $11.50 per share in cash, representing an approximate premium of 66% from the last closing price.“I have decided to delay...
Joining for today's presentation are Joe Carlucci, our chairman and CEO; Mark Herbers, our interim chief financial officer; and Dr. Also joining on the call today are Syed Kamal, our president; and Jillian Bernard, our controller.