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Life Healthcare Group (LHC) Fair Value & Analysis

Healthcare · ZA · Market cap 15.4B ZAC

LH Life Healthcare Group LHC · JSE
PriceR11.34
Fair ValueR28.44
Upside+150.8%
Quality65/100
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Weak Growth
Highly profitable · 26.7% net margin
Low debt · generates free cash flow
Ranks above peers (8/12)
Moderate moat 62/100
Evidence: High Range R21.33 – R35.55 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated today

Fair value updated Aug 13, 2026, revised from R35.78 to R28.44 (−20.5%) since Jul 14, 2026. Share price +5.3% over the past month.

A solid business, screening 151% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (R21.33). The market is more pessimistic than our downside scenario.
  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

R24.68 R10.02 Fair Value R28.44 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range R10.02 – R24.68 · fair‑value band R21.33 – R35.55 · the R11.34 price screens below the R28.44 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Life Healthcare Group (LHC) currently trades at R11.34, while our model-based Fair Value estimate is R28.44, implying the stock looks roughly 150.8% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Life Healthcare Group generated revenue of 25.7B ZAR at a net margin of 26.7%. Revenue grew 2.3% year over year. It earns a return on equity of 14.3%. Net debt stands at 141M ZAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from R21.33 (bear case) to R35.55 (bull case); at R11.34, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Healthcare peers we cover trades at -14% fair-value upside, at 151%, LHC screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF R21.71 R32.37 R47.79 80
Residual Income R15.56 R18.47 R60.79 76
Rev-Margin DCF R18.07 R28.29 R40.19 74
All 23 models by family
DCF Models
FCF DCF R21.40 R33.54 R52.28 38
Owner Earnings R27.42 R43.04 R67.17 31
5Y Revenue Exit R18.07 R28.22 R41.14 39
5Y EBITDA Exit R11.10 R15.07 R19.45 41
5Y P/E Exit R33.67 R57.67 R83.15 38
10Y Revenue Exit R18.56 R28.16 R41.02 36
10Y EBITDA Exit R14.61 R18.98 R24.33 37
10Y P/E Exit R29.05 R48.70 R73.36 35
Earnings-Based
Graham-Dodd R18.36 R59.61 R79.61 54
Lynch FV R13.31 R19.01 R24.71 50
PEG = 1.0 R13.31 R19.01 R24.71 46
Dividend Discount
Gordon GGM R33.58 R69.81 R110.75 70
DDM Multi-Stage R33.58 R56.60 R73.27 61
Multiples
P/E Multiple R44.55 R59.40 R74.25 63
P/S Multiple R34.43 R45.90 R57.38 58
P/B Multiple R26.83 R35.78 R44.72 55
EV/EBITDA R6.29 R8.26 R10.22 54
EV/Revenue R17.04 R24.17 R31.31 43
Asset-Based
NCAV (Graham) R3.98 R5.33 R7.95 50
Growth DCF
Growth DCF R21.71 R32.37 R47.79 80
Rev-Margin DCF R18.07 R28.29 R40.19 74
Economic Profit
Residual Income R15.56 R18.47 R60.79 76
Growth Earnings
Growth-Adj P/E R37.20 R53.14 R69.08 68

Widest divergence: Dividend Discount (R56.60) versus Asset-Based (R5.33). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 25.7B ZAC
Revenue growth (YoY) +2.3%
Net margin 26.7%
Return on equity 14.3%
Free cash flow 2.6B ZAC FY2025
P/E ratio 12.2
More key figures
Operating margin 10.3%
EPS (TTM) R0.9300
Dividend yield 0.1%
EPS growth (YoY) +387%
Net debt 141M ZAC FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 63 · Market factors (momentum, volatility) 44

Profitability 85
Margins and returns on capital today
Quality Growth 24
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 23
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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.

Full company description

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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Life Healthcare Group reported revenue of R25.1B in FY2025 versus R26.9B in FY2021, a compound −1.7%/yr. Reported net income was R3.9B in FY2025, compounding +21.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
25.1B ZAR
Latest YoY
−2.7%
Avg. growth/yr (3Y) 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.
+6.9%
Avg. growth/yr (5Y) 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.
−0.2%
Avg. growth/yr (16Y) 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.
+7.5%
Revenue −1.7%/yr
FY21 R26.9B
FY22 R20.5B
FY23 R22.6B
FY24 R25.8B
FY25 R25.1B
Net income +21.8%/yr
FY21 R1.8B
FY22 R1.5B
FY23 R264M
FY24 R4.8B
FY25 R3.9B
Character of growth · EPS growth decomposed (2014-2025) +0.0 % p.a.
Revenue per share +3.5 pp

of which total revenue +6.0 pp · buybacks/dilution −2.5 pp

EBIT margin −9.4 pp
Tax rate +2.0 pp
Residual (interest, one-offs) +3.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Life Healthcare Group Fair Value". https://www.fairvalue-calculator.com/stock/LHC

Peer Group

Medical Care Facilities · 265 stocks

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.

Quality Score 65 · Top 25%
Fair Value upside +151% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 27% · Top 25%
Operating margin (TTM) 10% · Above median
Revenue growth 2% · Below median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.29× · Higher than median

Valuation Multiples vs Medical Care Facilities median · lower = cheaper

P/E (TTM) 12.2× · Cheaper than 75% of peers
P/FCF 0.4× · Cheaper than 75% of peers
PEG 74.95× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 25
FUTURE 12 · sector 24
PAST 57 · sector 30
HEALTH 86 · sector 90
DIVIDEND 1 · sector 38

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Life Healthcare Group (LHC) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R28.44 versus a price of R11.34, about +151% (undervalued).
What is the fair value of LHC?
Our model-based fair value for Life Healthcare Group is R28.44 (as of Aug 13, 2026), built from audited fundamentals. The current price is R11.34.
What is the quality score of LHC?
Life Healthcare Group 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 revenue of Life Healthcare Group (LHC)?
Life Healthcare Group reported trailing-twelve-month revenue of about 25.7B ZAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of LHC?
The net profit margin of Life Healthcare Group is about 26.7%, meaning it keeps roughly 26.7% of revenue as net income. Based on the latest reported figures.
Does Life Healthcare Group pay a dividend?
Life Healthcare Group currently shows a dividend yield of about 0.05% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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