Community Health Systems provides general and specialized hospital healthcare services to patients in the United States. The company was founded in 1985 and is based in Franklin, Tennessee.
CYH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Community Health Systems Inc. To summarize, we found that Community Health Systems Inc ranked in the 95th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 3958% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for CYH, they are:
7% of the company's capital comes from equity, which is greater than just 1.83% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 93% of the company's capital (with equity being the remaining amount). Approximately 98.13% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The weighted average cost of capital for the company is 12. This value is greater than 88.64% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CYH, try MNKKQ, NVCR, RDY, AMEH, and BEAT.
Introduction Community Health Systems (CYH) is one of the largest domestic operators of acute care hospitals and outpatient facilities with over 100 hospitals and 16,000 beds. These facilities are served by over 2,000 physicians and 1,000 other licensed healthcare practitioners that provide a wide variety of services ranging from emergency...
Captain Alpha on Seeking Alpha | December 29, 2020
FRANKLIN, Tenn.--(BUSINESS WIRE)---- $CYH--Community Health Systems, Inc. (the “Company”) (NYSE: CYH) announced today the early tender results of the previously announced cash tender offer (the “Tender Offer”) by its wholly owned subsidiary, CHS/Community Health Systems, Inc. (the “Issuer”), to purchase for cash any and all of the Issuer’s outstanding 6.250% Senior Secured Notes due 2023 (the “2023 Notes”), on the terms and subject to the conditions set forth in the Offer to Purchase Statement, dated De