Life Healthcare (LHC) fair value: what the stock is really worth
As of Sep 25, 2026: fair value of Life Healthcare ZAR 22.41, price ZAR 11.76, upside +90.6%, quality 65 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range R10.02 – R23.90 · fair‑value band R16.19 – R31.37 · the R11.76 price screens below the R22.41 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 27, 2026.
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Life Healthcare Group Holdings Limited, an investment holding company, operates as a private healthcare company in Southern Africa. It operates through Southern Africa " Hospitals Services, Southern Africa - Complementary Services, Southern Africa - Healthcare Services, and International segments.
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Life Healthcare Group Holdings Limited, an investment holding company, operates as a private healthcare company in Southern Africa. It operates through Southern Africa " Hospitals Services, Southern Africa - Complementary Services, Southern Africa - Healthcare Services, and International segments. The company operates acute hospitals; and Life Nkanyisa care centres that provide long-term chronic mental healthcare, frail care rehabilitation, step-down care, correctional services, primary healthcare, and substance abuse recovery programme services to patients in the public sector. It also offers mental health, acute rehabilitation, renal dialysis, oncology, and diagnostics services; and training for pharmacists, pharmacists' assistants, and nurses. In addition, the company provides nursing and pharmacy services; and health and well-being, occupational health, emergency medical, and complementary and advisory services. Further, it retains the right to manufacture, commercialise, and distribute Life Molecular Imaging (LMI) products, such as early-stage novel radiotherapeutic and radio diagnostic products in Africa. The company was formerly known as Afrox Healthcare Limited and changed its name to Life Healthcare Group Holdings Limited in January 2005. Life Healthcare Group Holdings Limited was founded in 1983 and is headquartered in Johannesburg, South Africa.
Stock analysis
Life Healthcare (LHC) currently trades at R11.76, while our model-based Fair Value estimate is R22.41, implying the stock looks roughly 47.5% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of R53.14 per share, and 21 of the 23 models we run sit above the R11.76 price.
Bear case: the Asset-Based group reads lowest at R5.33, and 2 of the 23 models stay below the price. Evidence for this calculation is low.
Scenario range: R16.19 (bear) to R31.37 (bull), the price of R11.76 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 65/100 (solid quality), in the Healthcare sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Life Healthcare reported revenue of 25.1B ZAR in FY2025 versus 26.9B ZAR in FY2021, a compound −1.7%/yr. Reported net income was 3.9B ZAR in FY2025, compounding +21.8%/yr from FY2021.
Key figures
Market cap 17.1B ZAC · P/E ratio 12.6 · P/S ratio 1.95 · EPS (TTM) R0.9300 · Dividend yield 4.9% · Net margin 15.4% · Return on equity 14.3% · Return on assets (EBIT) 5.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).
What moves the price
The share trades about 7% below its 52-week high and 17% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at 21% fair-value upside, at 91%, LHC screens cheaper than that median.
Fair Value models
Bear R16.19Fair Value R22.41Bull R31.37
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then (0.3481 ZAR per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−2.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−0.2%
Start year 2020 (pandemic). Over 10 years: +5.5% a year
Revenue growth 16 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+7.5%
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What shareholders gained per year (last 5 years), in ZAR (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+82.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+77.6%
Dividend (yield on the price)4.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.17.2% vs 5.4%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.9% → −2%
2025 sits 153% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Start year 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−4.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about −7.9% a year for the price and +1.8% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Medical Care Facilities · 255 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score65 · Top 25%
Fair Value upside+90.6% · Top 25%
Profitability
Return on equity (TTM)14.3% · Above median
Return on assets7.0% · Top 25%
Net margin (TTM)26.7% · Top 25%
Operating margin (TTM)10.3% · Above median
Growth and dividend
Revenue growth2.3% · Below median
Dividend yield (TTM)4.9% · Top 25%
Balance sheet
Debt / equity0.29× · Above median
Valuation Multiplesvs Medical Care Facilities median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Life Healthcare Fair Value". https://www.fairvalue-calculator.com/stock/LHC
Frequently asked questions
Is Life Healthcare (LHC) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of R22.41 versus a price of R11.76, about +91% upside (undervalued).
What is the fair value of LHC?
Our model-based fair value for Life Healthcare is R22.41 (as of Sep 27, 2026), built from audited fundamentals. The current price: R11.76.
What is the quality score of LHC?
Life Healthcare has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Life Healthcare (LHC)?
Our model-based price target is the fair value of R22.41 (as of Sep 27, 2026) from 23 valuation models. Cautious scenario R16.19, optimistic scenario R31.37. It is a calculation from audited fundamentals, not an analyst target.
What is the Life Healthcare stock forecast for 2026?
Our models put fair value at R22.41, about +91% upside versus a price of R11.76 (undervalued). Cautious scenario R16.19, optimistic scenario R31.37. The calculation is refreshed regularly with new filings.
What is the revenue of Life Healthcare (LHC)?
Life Healthcare reported trailing-twelve-month revenue of about 25.7B ZAR (latest available figure, as of Sep 27, 2026).
Does Life Healthcare pay a dividend?
Life Healthcare currently shows a dividend yield of about 4.93% relative to its recent price (as of Sep 27, 2026).
What growth is priced into Life Healthcare (LHC)?
For today's price to be fair in a discounted-cash-flow model, Life Healthcare would have to grow free cash flow by -4.9 % per year for five years (discount rate 13.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -0.2 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of LHC use?
Our models discount Life Healthcare at 13.4 %: a base by market capitalisation (small), damped by beta 0.07, country premium for South Africa. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Life Healthcare that is -4.9 % per year a year over ten years, using the same discount rate (13.4 %) and the same formula as our fair value.
How much growth has Life Healthcare (LHC) delivered so far?
Over the past 5 years revenue at Life Healthcare grew -0.2 % a year. The price currently implies -4.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Life Healthcare (LHC) growing?
The median revenue growth in the sector is +4.2 % a year. That is the yardstick for the growth priced into Life Healthcare (-4.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Life Healthcare (LHC)?
The free-cash-flow yield on the price is 15.32 %: that much free cash flow Life Healthcare produces per unit of market value. When it exceeds the discount rate of our models (13.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Life Healthcare (LHC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Life Healthcare it is R22.41 per share (as of Sep 27, 2026), against a price of R11.76. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is Life Healthcare stock overvalued or undervalued in 2026?
As of Sep 27, 2026, LHC trades below its calculated fair value: price R11.76, fair value R22.41, a gap of about +91% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of LHC?
No. The price is what the market pays today (R11.76); the fair value is what the company's own numbers justify (R22.41). For Life Healthcare the two are R10.65 per share apart. That gap is exactly why we show both numbers side by side.
How much is Life Healthcare worth?
The market values Life Healthcare at about 17.1B ZAC (market capitalisation, as of Sep 27, 2026). Per share that is R11.76; our models calculate a fair value of R22.41 per share.
What do the bullish and bearish scenarios say about LHC?
Our models span a range for Life Healthcare: cautious scenario R16.19, base R22.41, optimistic R31.37 per share (as of Sep 27, 2026, price R11.76). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LHC?
Life Healthcare trades at a price-to-earnings ratio of 12.6 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R22.41 is built from several models across several years. Other multiples: PEG 75.0, P/B 1.5, P/S 0.7, EV/EBITDA 4.5.
What is the PEG ratio of LHC?
The PEG ratio of Life Healthcare is 74.95 (P/E divided by earnings growth, as of Sep 27, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Life Healthcare (LHC)?
Balance-sheet figures for Life Healthcare (as of Sep 27, 2026): return on equity 14.3%, debt of 0.29 per unit of equity. They feed the Quality Score of 65/100, which measures business quality independently of the share price.
How far is LHC from its 52-week high?
Life Healthcare trades at R11.76, about 7% below its 52-week high of R12.66 and 17% above the low of R10.07 (as of Sep 25, 2026). Distance from the high says nothing about value: that is what the fair value of R22.41 is for.
Which stocks are comparable to Life Healthcare?
From the same area (Healthcare) we also value HCA Healthcare, Inc, Fresenius SE, Dr. Sulaiman Al Habib Medical Services Group, Tenet Healthcare Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Life Healthcare stock attractive at the current price?
The data as of Sep 27, 2026: price R11.76, calculated fair value R22.41 (+91%), Quality Score 65/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of LHC calculated?
We run Life Healthcare through 23 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R22.41, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. Life Healthcare currently trades 91 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Life Healthcare (LHC)?
The closing price on Sep 25, 2026 was R11.76. Our model-based fair value is R22.41, about +91% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Life Healthcare right now?
The price is below even our cautious bear case (R16.19). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (R16.19 to R31.37) leaves room in how you read the outcome.
Where does the earnings growth of Life Healthcare (LHC) come from?
Earnings per share at Life Healthcare grew +0.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.5 %, EBIT margin −9.4 %, tax rate +2.0 %, residual (interest, one-offs) +4.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Life Healthcare
How large is the market capitalisation of Life Healthcare (LHC)?
The market capitalisation of Life Healthcare is 17.1B ZAC. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Life Healthcare (LHC)?
The price-to-sales ratio of Life Healthcare is 1.95 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Life Healthcare (LHC)?
Earnings per share at Life Healthcare are R0.9300 (price ÷ EPS = P/E 12.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Life Healthcare (LHC)?
The dividend yield of Life Healthcare is 4.9% (payout 62.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Life Healthcare (LHC)?
The net margin of Life Healthcare is 15.4% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Life Healthcare (LHC)?
The return on equity (ROE) of Life Healthcare is 14.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Life Healthcare (LHC)?
On an EBIT basis the return on assets of Life Healthcare is 5.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Life Healthcare (LHC)?
The operating margin of Life Healthcare is 10.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Life Healthcare (LHC)?
Revenue at Life Healthcare is growing +2.3% versus a year earlier (3y avg +6.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Life Healthcare (LHC)?
Earnings per share at Life Healthcare are growing +387% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Life Healthcare (LHC) carry?
The net debt of Life Healthcare is 141M ZAC (fiscal year 2025, ≈ 0.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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