DaVita Healthcare Partners delivers dialysis services to patients with chronic kidney failure and end stage renal disease. The company was founded in 1994 and is based in Denver, Colorado.
DVA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Davita Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Davita Inc ranked in the 69th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 154%. In terms of the factors that were most noteworthy in this DCF analysis for DVA, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 46. Notably, its equity weight is greater than just 11.87% of US equities in the Healthcare sector yielding a positive free cash flow.
Davita Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 3.4% of tickers in our DCF set.
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 DVA, try NVO, QDEL, JAZZ, ABBV, and FTLF.
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Nephrology Practice Solutions (NPS) today announced that Dr. Thao Truong Pascual has assumed the role of chief medical officer (CMO). As a subsidiary of DaVita, NPS owns or manages nephrology practices throughout the U.S. that manage care for patients with chronic kidney disease.