HCA Holdings provides health care services in the United States. It operates general, acute care hospitals that offer medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services, and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy services. The company was founded in 1968 and is based in Nashville, Tennessee.
HCA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for HCA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that HCA Healthcare Inc ranked in the 64th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for HCA Healthcare Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 52. Its equity weight surpasses that of merely 14.52% of free cash flow generating stocks in the Healthcare sector.
HCA Healthcare Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 5.7% 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 HCA, try HUM, ENDP, UTHR, EGRX, and MCK.
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