R1 RCM Inc. provides revenue cycle management and physician advisory services for healthcare providers in the United States. It offers revenue cycle management services to manage their revenue cycles, which encompass patient registration, insurance and benefit verification, medical treatment documentation and coding, and bill preparation and collection from patients and payers. The company also provides physician advisory services, which offer concurrent level of care billing classification reviews, as well as retrospective chart audits to assist hospitals in properly billing payers for selected services. The company was formerly known as Accretive Health, Inc. and changed its name to R1 RCM Inc. in January 2017. R1 RCM Inc. was founded in 2003 and is based in Chicago, Illinois.
RCM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RCM, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that R1 Rcm Inc ranked in the 80th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 435.83% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for RCM, they are:
Its compound free cash flow growth rate, as measured over the past 2.49 years, is 0.98% -- higher than 90.41% of stocks in our DCF forecasting set.
R1 Rcm Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 21.09% of tickers in our DCF set.
As a business, R1 Rcm Inc experienced a tax rate of about 19% over the past twelve months; relative to its sector (Technology), this tax rate is higher than 77.3% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DGII, QRTEA, BNFT, TTMI, and HGBL can be thought of as valuation peers to RCM, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
New York, New York--(Newsfile Corp. - January 18, 2021) - Levi & Korsinsky announces it has commenced an investigation of R1 RCM Inc. (NASDAQ: RCM) concerning possible breaches of fiduciary duty. To obtain additional information, go to:https://www.zlk.com/compensation2/r1-rcm-inc-information-request-formor contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (212) 363-7500. There is no cost or obligation to you.Levi & Korsinsky is a nationally recognized firm with offices in New York, ...
Purcell Julie & Lefkowitz LLP, a class action law firm dedicated to representing shareholders nationwide, is investigating a potential breach of fiduciary duty claim involving the board of directors of R1 RCM Inc. (NASDAQ: RCM).
Conversion of Preferred Stock to Shares of Common Stock to Enhance Alignment with Common ShareholdersAscension and TowerBrook Committed to Supporting Sustainable Long-Term GrowthCHICAGO, Jan. 06, 2021 (GLOBE NEWSWIRE) -- R1 RCM Inc. (NASDAQ: RCM), a leading provider of technology-enabled revenue cycle management services to healthcare providers, announced that it has entered into an agreement with TCP-ASC ACHI Series LLLP, an investment vehicle jointly owned by Ascension Health Alliance (“Ascension”) and investment funds affiliated with TowerBrook Capital Partners L.P. (“TowerBrook”), for the conversion of all of the 8.00% Series A Convertible Preferred Stock (the “Preferred Stock”) held by the joint investment vehicle to common stock. The Preferred Stock, issued in February 2016, was e...