National Healthcare Corp. operates, manages, or provides services to skilled nursing facilities and associated assisted living centers, retirement centers, and home health care programs. The company was founded in 1971 and is based in Murfreesboro, Tennessee.
NHC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for National Healthcare Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that National Healthcare Corp ranked in the 84th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 1020.33% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of National Healthcare Corp, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 21.3 -- which is good for besting 86.32% of its peer stocks (US stocks in the Healthcare sector with positive cash flow).
National Healthcare Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 22.07% of tickers in our DCF set.
NHC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 22.07% 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 NHC, try ARGX, FVE, HCA, RHE, and MNK.
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