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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for R1 Rcm Inc. To summarize, we found that R1 Rcm Inc ranked in the 79th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 499% 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 2.24 years, is 1.05% -- higher than 91.04% 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 only 24.47% of tickers in our DCF set.
As a business, R1 Rcm Inc experienced a tax rate of about 22% over the past twelve months; relative to its sector (Technology), this tax rate is higher than 81.27% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as RCM, try DELL, PFPT, AVGO, MTSI, and ZS.
Global Healthcare Rcm Outsourcing Market Growth (Status And Outlook) 2024, Covid 19 Outbreak Impact research report added by Report Ocean, is an in-depth analysis of market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends
R1 RCM Inc. (RCM), a provider of 'revenue cycle management' services, i.e. services ranging from patient registration to bill collection, to healthcare providers, is one of the beneficiaries of healthcare providers outsourcing front-end services. Usually, the healthcare industry, in general, is one of the slowest adopters of technology and outsourcing...
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