Tenet Healthcare primarily operates acute care hospitals and related healthcare facilities in the United States. It operates through two segments, Hospital Operations and Other, and Conifer. The company was founded in 1967 and is based in Dallas, Texas.
THC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Tenet Healthcare Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Tenet Healthcare Corp ranked in the 94th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 6380%. The most interesting components of our discounted cash flow analysis for Tenet Healthcare Corp ended up being:
9% of the company's capital comes from equity, which is greater than merely 4.97% of stocks in our cash flow based forecasting set.
Tenet Healthcare Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 0.92. This coverage rate is greater than that of merely 22.82% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Relative to other stocks in its sector (Healthcare), Tenet Healthcare Corp has a reliance on debt greater than 96.77% of them.
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 THC, try ASRT, QHC, RDY, USNU, and HZNP.