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Netcare Limited (NTCP) Fair Value & Analysis

Healthcare · ZA · Market cap 270M ZAC · ISIN ZAE000011953

What is Netcare Limited really worth?

NL Netcare Limited NTCP · JSE
PriceR124.99
Fair ValueR13.61
Upside−89.1%
Quality62/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

A solid business, but trading 818% above our fair value of R13.61.

As of Aug 13, 2026, the fair value of Netcare Limited is R13.61 per share against a price of R124.99, so the fair value sits 89% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Moderate debt · generates free cash flow
Ranks above peers (7/11)

Risks

!Mixed Growth (revenue 5y +6.9 %/yr)
!Thin margins · 6.8% net margin
!Moderate moat 55/100
!Evidence only low, so the estimate is less certain
!Weak on future: 24 out of 100
!Weak on dividend: 15 out of 100
Evidence: Low Range R7.18 – R20.74

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 23 days ago

Fair value updated Aug 13, 2026, revised from R16.67 to R13.61 (−18.4%) since Jul 14, 2026. Share price +33.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (R20.74). The favourable scenario is already priced in.
  • The model range is unusually wide (R7.18 to R20.74). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • 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 but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

R124.99 R54.30 Fair Value R13.61 May 2021 Sep 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 R54.30 – R124.99 · fair‑value band R7.18 – R20.74 · the R124.99 price screens above the R13.61 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Netcare Limited (NTCP) currently trades at R124.99, while our model-based Fair Value estimate is R13.61, implying the stock looks roughly 818.3% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Healthcare sector. Bull case: the Multiples group reads highest at a median of R28.13 per share, and 0 of the 24 models we run sit above the R124.99 price. Bear case: the Growth DCF group reads lowest at R2.03, and 24 of the 24 models stay below the price. Evidence for this calculation is low.

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 5.5B ZAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from R7.18 (bear case) to R20.74 (bull case); at R124.99, the current price sits above 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 −7% fair-value upside, at −89%, NTCP screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (R2.02 to R49.03). Read the values as a conservative anchor, not as a price target.
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
FCF DCF R0.9200 R2.02 R3.66 76
Owner Earnings R4.52 R6.49 R9.42 76
Growth DCF R1.00 R2.03 R3.46 75
All 24 models by family
DCF Models
FCF DCF R0.9200 R2.02 R3.66 76
Owner Earnings R4.52 R6.49 R9.42 76
5Y Revenue Exit R11.02 R20.11 R32.65 71
5Y EBITDA Exit R16.83 R30.06 R46.57 74
5Y P/E Exit R8.29 R15.42 R23.37 69
10Y Revenue Exit R5.71 R12.07 R19.68 64
10Y EBITDA Exit R9.28 R17.71 R27.71 67
10Y P/E Exit R4.77 R9.41 R14.32 62
Earnings-Based
Graham-Dodd R8.69 R15.93 R19.71 66
EPV R13.63 R15.69 R17.37 74
Dividend Discount
Gordon GGM R3.72 R4.59 R5.36 69
DDM Multi-Stage R3.72 R4.69 R5.64 67
Multiples
P/E Multiple R21.10 R28.13 R35.16 63
P/S Multiple R16.30 R21.73 R27.17 58
P/B Multiple R16.30 R21.73 R27.17 55
EV/EBIT R31.68 R43.44 R55.20 66
EV/EBITDA R35.87 R49.03 R62.19 67
EV/Revenue R21.58 R32.37 R43.16 53
Asset-Based
NCAV (Graham) R3.99 R5.34 R7.97 54
Growth DCF
Growth DCF R1.00 R2.03 R3.46 75
Rev-Margin DCF R11.02 R20.11 R30.57 71
Economic Profit
Residual Income R7.36 R8.81 R16.11 73
ROIC Compounder R13.87 R16.33 R18.59 72
Growth Earnings
Growth-Adj P/E R14.94 R21.34 R27.74 67

Widest divergence: Multiples (R28.13) versus Growth DCF (R2.03). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 1.6 as of Jul 14, 2026
P/S ratio 0.11 P/E × margin
EPS (TTM) R0.5880 price ÷ EPS = P/E 1.6
Dividend yield 0.7% payout 158%
Net margin 6.6% FY2025
Return on equity 17.6% TTM
More key figures
Profitability
Return on assets (EBIT) 10.6% avg 5y
Operating margin 13.2% TTM
Growth
Revenue (TTM) 26.9B ZAR TTM
Revenue growth (YoY) +4.8% 3y avg +6.8%
EPS growth (YoY) +19.1%
Balance sheet & cash flow
Free cash flow 817M ZAR FY2025
Net debt 5.5B ZAR FY2025 · ≈ 6.7 yrs of FCF

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

Quality Score breakdown

Overall quality 62/100

Of which business quality 57 · Market factors (momentum, volatility) 76

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 39
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 69
Price trend over the last 3–12 months (market factor)
52W Momentum 87
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 26.3B ZAR in FY2025 versus 21.2B ZAR in FY2021, a compound +5.6%/yr. Reported net income was 1.7B ZAR 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. revenue 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. revenue 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. revenue growth/yr (11Y) 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.
−1.7%
Value creation/yr (5Y, in ZAR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
+21.2% · in ZAR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+20.5%
Dividend yield0.7%
Operating margin (EBIT) 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.7.0% (2020) → 14.3% (2025) · rising
Worst earnings drop88% (2020) · in ZAR
Revenue +5.6%/yr
FY21 21.2B ZAR
FY22 21.6B ZAR
FY23 23.7B ZAR
FY24 25.2B ZAR
FY25 26.3B ZAR
Net income +22.7%/yr
FY21 769M ZAR
FY22 1.0B ZAR
FY23 1.3B ZAR
FY24 1.5B ZAR
FY25 1.7B ZAR

NTCP screens 818% overvalued. Compare with HCA Healthcare, Inc →

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Cite: Fair Value Calculator (2026). "Netcare Limited Fair Value". https://www.fairvalue-calculator.com/stock/NTCP

Peer Group

Medical Care Facilities · 257 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 62 · Above median
Fair Value upside −86% · Bottom 25%
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% · Below median
Dividend yield (TTM) 0.7% · Below median
Debt / equity 0.63× · Higher than 75% of peers

Valuation Multiples vs Medical Care Facilities median · lower = cheaper

P/E (TTM) 1.6× · Cheaper than 75% of peers
P/FCF 0.0× · Cheaper than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 22
FUTURE24 · sector 26
PAST70 · sector 30
HEALTH69 · sector 90
DIVIDEND15 · sector 42

VALUE 0: the price sits above our fair-value range.

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

Similar stocks

10 more Medical Care Facilities stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
HCA Healthcare, Inc HCA $417.82 $547.67 +31%
Fresenius SE FRE €45.25 €32.15 −29%
Dr. Sulaiman Al Habib Medical Services Group 4013 241.00 SAR 112.37 SAR −53%
IHH Healthcare Berhad, an investment holding company, Q0F 2.67 SGD 1.44 SGD −46%
Tenet Healthcare Corporation THC $266.80 $330.25 +24%
DaVita Inc DVA $180.68 $186.49 +3%
Apollo Hospitals Enterprise Limited APOLLOHOSP ₹8,818 ₹2,955 −66%
Fresenius Medical Care AG FME €39.92 €71.28 +79%
Aier Eye Hospital Group 300015 ¥8.25 ¥7.67 −7%
Max Healthcare Institute Limited MAXHEALTH ₹1,005 ₹284.87 −72%

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Frequently asked questions

Is Netcare Limited (NTCP) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of R13.61 versus a price of R124.99, about −89% upside (overvalued).
What is the fair value of NTCP?
Our model-based fair value for Netcare Limited is R13.61 (as of Aug 13, 2026), built from audited fundamentals. The current price: R124.99.
What is the quality score of NTCP?
Netcare Limited has a Quality Score of 62/100. 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 Netcare Limited (NTCP)?
Our model-based price target is the fair value of R13.61 (as of Aug 13, 2026) from 24 valuation models. Cautious scenario R7.18, optimistic scenario R20.74. It is a calculation from audited fundamentals, not an analyst target.
What is the Netcare Limited stock forecast for 2026?
Our models put fair value at R13.61, about −89% upside versus a price of R124.99 (overvalued). Cautious scenario R7.18, optimistic scenario R20.74. The calculation is refreshed regularly with new filings.
What is the revenue of Netcare Limited (NTCP)?
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 NTCP?
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 0.74% relative to its recent price (as of Aug 13, 2026).
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