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Netcare Limited (NTC) Fair Value & Analysis

Healthcare · ZA · Market cap 21.5B ZAC

NL Netcare Limited NTC · JSE
PriceR18.47
Fair ValueR20.67
Upside+11.9%
Quality63/100
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Mixed Growth
Thin margins · 6.8% net margin
Moderate debt · generates free cash flow
Ranks above peers (11/15)
Moderate moat 56/100
Evidence: High Range R10.79 – R30.55 Share as image

Fair value as of: Aug 13, 2026

From 25 valuation models · updated today

Fair value updated Aug 13, 2026, revised from R24.80 to R20.67 (−16.7%) since Jul 18, 2026. Share price −1.8% over the past month.

A solid business, screening 12% undervalued on our models.

What matters now

  • The model range is unusually wide (R10.79 to R30.55). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Our model range runs from R10.79 (bear) to R30.55 (bull), base R20.67. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 63/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

R19.22 R11.04 Fair Value R20.67 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 R11.04 – R19.22 · fair‑value band R10.79 – R30.55 · the R18.47 price screens below the R20.67 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Netcare Limited (NTC) currently trades at R18.47, while our model-based Fair Value estimate is R20.67, implying the stock looks roughly 11.9% undervalued today. The Quality Score stands at 63/100 (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, Netcare Limited generated revenue of 26.9B ZAR at a net margin of 6.8%. Revenue grew 4.8% year over year. It earns a return on equity of 17.6%. Net debt stands at 11.1B ZAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from R10.79 (bear case) to R30.55 (bull case); at R18.47, the current price sits within 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 12%, NTC 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 R3.50 R6.61 R10.85 80
Residual Income R9.91 R12.45 R28.69 76
Rev-Margin DCF R15.30 R28.50 R42.45 74
All 25 models by family
DCF Models
FCF DCF R3.28 R6.62 R11.38 38
Owner Earnings R9.26 R15.26 R23.80 31
5Y Revenue Exit R15.30 R28.63 R45.30 39
5Y EBITDA Exit R23.46 R43.12 R65.32 41
5Y P/E Exit R12.36 R23.40 R34.45 38
10Y Revenue Exit R9.92 R20.97 R35.07 36
10Y EBITDA Exit R15.82 R30.77 R49.65 37
10Y P/E Exit R8.89 R17.44 R27.16 35
Earnings-Based
Graham-Dodd R10.26 R24.02 R30.90 54
PEG = 1.0 R4.11 R5.87 R7.63 46
EPV R19.34 R23.28 R26.72 59
Dividend Discount
Gordon GGM R8.10 R13.87 R20.86 70
DDM Multi-Stage R8.10 R11.98 R16.28 61
Multiples
P/E Multiple R24.90 R33.20 R41.50 63
P/S Multiple R19.24 R25.66 R32.07 58
P/B Multiple R19.24 R25.66 R32.07 55
EV/EBIT R35.21 R48.37 R61.52 53
EV/EBITDA R40.55 R55.48 R70.41 54
EV/Revenue R23.91 R35.98 R48.06 43
Asset-Based
NCAV (Graham) R4.71 R6.31 R9.41 50
Growth DCF
Growth DCF R3.50 R6.61 R10.85 80
Rev-Margin DCF R15.30 R28.50 R42.45 74
Economic Profit
Residual Income R9.91 R12.45 R28.69 76
ROIC Compounder R20.32 R25.96 R32.12 72
Growth Earnings
Growth-Adj P/E R18.77 R26.81 R34.85 68

Widest divergence: Multiples (R33.20) versus Asset-Based (R6.31). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 26.9B ZAC
Revenue growth (YoY) +4.8%
Net margin 6.8%
Return on equity 17.6%
Free cash flow 817M ZAC FY2025
P/E ratio 11.8 as of Jun 10, 2026
More key figures
Operating margin 13.2%
EPS (TTM) R1.44
Dividend yield 0.1%
EPS growth (YoY) +19.1%
Net debt 11.1B ZAC FY2025

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

Quality Score breakdown

Overall quality 63/100

Of which business quality 58 · Market factors (momentum, volatility) 77

Profitability 58
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 32
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 66
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 100
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

Netcare Limited, an investment holding company, operates private hospitals in South Africa. It operates through Hospital and Emergency Services, and Primary Care segments. The Hospital and Emergency Services segment engages in the hospital and pharmacy operations.

Full company description

Netcare Limited, an investment holding company, operates private hospitals in South Africa. It operates through Hospital and Emergency Services, and Primary Care segments. The Hospital and Emergency Services segment engages in the hospital and pharmacy operations. Its operations covers its private acute hospital network and day clinics; and non-acute services, including emergency medical services, mental health clinics operation, diagnostics support services, and cancer care services, as well as sells healthcare products. The Primary Care segment offers healthcare services, and employee health and wellness services, as well as administrative services to medical and dental practices. It also engages in the financing, property owning, and pharmaceutical services. It operates through a network of acute hospitals, netcare 911 sites, cancer care centres, haematology centres, renal dialysis facilities, dialysis stations, point of care devices, mental health hospitals, primary health care facilities, and occupational health service contracts, as well as insurance products, and prepaid procedures and healthcare vouchers. Netcare Limited was incorporated in 1996 and is headquartered in Sandton, South Africa.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Netcare Limited reported revenue of R26.3B in FY2025 versus R21.2B in FY2021, a compound +5.6%/yr. Reported net income was R1.7B in FY2025, compounding +22.7%/yr from FY2021.

Growth Quality 64/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
26.3B ZAR
Latest YoY
+4.5%
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.
+6.8%
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.
+6.9%
Avg. growth/yr (20Y) 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.
+6.5%
Revenue +5.6%/yr
FY21 R21.2B
FY22 R21.6B
FY23 R23.7B
FY24 R25.2B
FY25 R26.3B
Net income +22.7%/yr
FY21 R769M
FY22 R1.0B
FY23 R1.3B
FY24 R1.5B
FY25 R1.7B
Character of growth · EPS growth decomposed (2014-2025) −3.1 % p.a.
Revenue per share −2.8 pp

of which total revenue −3.5 pp · buybacks/dilution +0.6 pp

EBIT margin +2.0 pp
Tax rate +0.1 pp
Residual (interest, one-offs) −2.3 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). "Netcare Limited Fair Value". https://www.fairvalue-calculator.com/stock/NTC

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 63 · Top 25%
Fair Value upside +11% · Above median
Return on equity (TTM) 18% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 13% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.63× · Higher than 75% of peers

Valuation Multiples vs Medical Care Facilities median · lower = cheaper

P/E (TTM) 11.8× · Cheaper than 75% of peers
P/B 1.98× · Pricier than median
P/S (TTM) 0.80× · Cheaper than median
P/FCF 1.6× · Cheaper than median
EV/EBITDA 5.9× · Cheaper than median
PEG 87.53× · 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 48 · sector 25
FUTURE 24 · sector 24
PAST 70 · sector 30
HEALTH 69 · 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 Netcare Limited (NTC) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R20.67 versus a price of R18.47, about +12% (undervalued).
What is the fair value of NTC?
Our model-based fair value for Netcare Limited is R20.67 (as of Aug 13, 2026), built from audited fundamentals. The current price is R18.47.
What is the quality score of NTC?
Netcare Limited has a Quality Score of 63/100. 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 Netcare Limited (NTC)?
Netcare Limited reported trailing-twelve-month revenue of about 26.9B ZAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of NTC?
The net profit margin of Netcare Limited is about 6.8%, meaning it keeps roughly 6.8% of revenue as net income. Based on the latest reported figures.
Does Netcare Limited pay a dividend?
Netcare Limited 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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