Pro Medicus Ltd (PME) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Pro Medicus Ltd stock A$85.12, price A$205, that is 58.5% below the price, quality 73 out of 100. Rating: strongly overvalued. 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. As of Nov 6, 2026.
How to read this chart
60‑month range A$37.31 – A$329.23 · fair‑value band A$48.10 – A$199.90 · the A$205.13 price screens above the A$85.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Pro Medicus Limited, a healthcare informatics company, engages in the development and supply of healthcare imaging software, and radiology information (RIS) system software and services to hospitals, imaging centers, and health care groups in Australia, North America, and Europe.
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The company offers Visage RIS Visage 7 Enterprise Imaging Platform, a healthcare imaging software that provides radiologists, physicians, and clinicians with access and visualization capability for viewing 2-D, 3-D, and 4-D medical images; and picture archive and communication system (PACS)/digital imaging software.
It also provides Visage RIS, a proprietary medical software for practice management, training, installation, professional services, and after-sale support and service products; and Promedicus.net, an e-health platform for secure email and integration products.
In addition, the company offers Visage Ease, a mobile application that provides users access to medical imaging results; and Visage Ease Pro, a mobile application that provides users the ability to interpret various diagnostic imaging studies stored on a Visage 7 server.
Pro Medicus Limited was incorporated in 1983 and is headquartered in Richmond, Australia.
Stock analysis
Pro Medicus Ltd (PME) currently trades at A$205.13, while our model-based Fair Value estimate is A$85.12, 59% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of A$76.89 per share, and 0 of the 26 models we run sit above the A$205.13 price.
Bear case: the Dividend Discount group reads lowest at A$11.41, and 26 of the 26 models stay below the price. Data coverage for this calculation is medium.
Scenario range: A$48.10 (bear) to A$199.90 (bull), the price of A$205.13 sits above 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 73/100 (solid quality), in the Healthcare sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Pro Medicus Ltd reported revenue of A$262M in FY2026 versus A$93.5M in FY2022, a compound +29.4%/yr. Reported net income was A$265M in FY2026, compounding +56.3%/yr from FY2022.
Key figures
Market cap A$21.5B (≈ $14.8B) Large · P/E ratio 80.9 · P/S ratio 82.0 · EPS (TTM) A$2.54 · Dividend yield 0.3% · Net margin 101% · Return on equity 75.0% · Return on assets (EBIT) 40.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 85 out of 100 (medium confidence).
What moves the price
The share trades about 23% below its 52-week high and 90% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at 1% fair-value upside, at −59%, PME screens richer than that median.
Fair Value models
The price assumes far more growth than our models allow for, so the models scatter widely (A$1.88 to A$126.85). Read the Fair Value as a cautious anchor, not a price target; the Growth Forecast section shows what the price assumes.
BearA$48.10Fair Value A$85.12BullA$199.90
Price A$205.13 · Downside -58.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 4 months old). Earnings retained since then (A$0.6538 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.Coverage ⓘCoverage = 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.91/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+22.9%
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.
+28.0%
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.
+31.0%
Start year 2021 (pandemic). Over 10 years: +25.3% a year
Revenue growth 18 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.
+20.5%
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What shareholders gained per year (last 5 years) (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.
+39.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+39.2%
Dividend (yield on the price)0.3%
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.53.8% vs 45.0%, picking up
Profit margin 2021 to 2026 ⓘ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.62% → 75%
2026 sits 221% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more 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).
+43.9%
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.
+21.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (Australia: IMF forecast 3.0% a year to 2030, 2.9% from 2016 to 2025) that is about +39.8% a year for the price and +18.2% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (90 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Strong margins and returns from recurring revenue contracts point to pricing power, yet limited data on innovation and a one-off gain leave the quality assessment incomplete.
Main risk: Reliance on a one-off gain in the latest fiscal year risks distorting the sustainability of reported margins and returns going forward.
Pro Medicus keeps winning multi-year contracts for its cloud-based imaging platform with leading US health systems and posts strong recurring revenue. Adding a former software CEO experienced in cloud scaling to the board points to a sharper focus on technology evolution. Our models see the shares as overvalued. Will this strengthen its edge in enterprise deployments or show that deeper tech changes are needed to keep growth on track?
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.Health Information Services · 119 stocks
Beats the industry median on 6/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score73 · Top 25%
Fair Value upside−58.5% · Below median
Profitability
Return on equity (12 months)75.0% · Top 25%
Return on assets43.5% · Top 25%
Net margin (12 months)101.4% · Top 25%
Operating margin (12 months)77.0% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)18.2% · Above median
Dividend yield (12 months)0.3% · Bottom 25%
Valuation Multiplesvs Health Information Services median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Pro Medicus Ltd Fair Value". https://www.fairvalue-calculator.com/stock/PME
Frequently asked questions
Is Pro Medicus Ltd (PME) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of A$85.12 versus a price of A$205.13, about 59% lower (overvalued).
What is the fair value of PME?
Our model-based fair value for Pro Medicus Ltd is A$85.12 (as of Nov 6, 2026), built from audited fundamentals. The current price: A$205.13.
What is the quality score of PME?
Pro Medicus Ltd has a Quality Score of 73/100. 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 Pro Medicus Ltd (PME)?
Our model-based price target is the fair value of A$85.12 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario A$48.10, optimistic scenario A$199.90. It is a calculation from audited fundamentals, not an analyst target.
What is the Pro Medicus Ltd stock forecast for 2026?
Our models put fair value at A$85.12, about 59% lower versus a price of A$205.13 (overvalued). Cautious scenario A$48.10, optimistic scenario A$199.90. The calculation is refreshed regularly with new filings.
What is the revenue of Pro Medicus Ltd (PME)?
Pro Medicus Ltd reported trailing-twelve-month revenue of about A$262M (latest available figure, as of Nov 6, 2026).
Does Pro Medicus Ltd pay a dividend?
Pro Medicus Ltd currently shows a dividend yield of 0.34% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Pro Medicus Ltd (PME)?
For today's price to be fair in a discounted-cash-flow model, Pro Medicus Ltd would have to grow free cash flow by +43.9 % per year for five years (discount rate 8.0 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +31.0 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of PME use?
Our models discount Pro Medicus Ltd at 8.0 %: a base by market capitalisation (large), damped by beta 0.57, country premium for Australia. 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 Pro Medicus Ltd that is +43.9 % per year a year over ten years, using the same discount rate (8.0 %) and the same formula as our fair value.
How much growth has Pro Medicus Ltd (PME) delivered so far?
Over the past 5 years revenue at Pro Medicus Ltd grew +31.0 % a year. The price currently implies +43.9 % 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 Pro Medicus Ltd (PME) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into Pro Medicus Ltd (+43.9 % 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 Pro Medicus Ltd (PME)?
The free-cash-flow yield on the price is 0.63 %: that much free cash flow Pro Medicus Ltd produces per unit of market value. When it exceeds the discount rate of our models (8.0 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Pro Medicus Ltd (PME)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Pro Medicus Ltd it is A$85.12 per share (as of Nov 6, 2026), against a price of A$205.13. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Pro Medicus Ltd stock overvalued or undervalued in 2026?
As of Nov 6, 2026, PME trades above its calculated fair value: price A$205.13, fair value A$85.12, a gap of about −59% (overvalued). 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 PME?
No. The price is what the market pays today (A$205.13); the fair value is what the company's own numbers justify (A$85.12). For Pro Medicus Ltd the two are A$120.01 per share apart. That gap is exactly why we show both numbers side by side.
How much is Pro Medicus Ltd worth?
The market values Pro Medicus Ltd at about A$21.5B (market capitalisation, as of Nov 6, 2026). Per share that is A$205.13; our models calculate a fair value of A$85.12 per share.
What do the bullish and bearish scenarios say about PME?
Our models span a range for Pro Medicus Ltd: cautious scenario A$48.10, base A$85.12, optimistic A$199.90 per share (as of Nov 6, 2026, price A$205.13). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of PME?
Pro Medicus Ltd trades at a price-to-earnings ratio of 80.9 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of A$85.12 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 148.8 (reported 80.9). Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, FY2026 ex one-offs: 128.9. Other multiples: PEG 2.7, P/B 47.6, P/S 82.0.
What is the PEG ratio of PME?
The PEG ratio of Pro Medicus Ltd is 2.67 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Pro Medicus Ltd (PME)?
Balance-sheet figures for Pro Medicus Ltd (as of Nov 6, 2026): return on equity 75.0%. They feed the Quality Score of 73/100, which measures business quality independently of the share price.
How far is PME from its 52-week high?
Pro Medicus Ltd trades at A$205.13, about 23% below its 52-week high of A$265.96 and 90% above the low of A$107.85 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of A$85.12 is for.
Which stocks are comparable to Pro Medicus Ltd?
From the same area (Healthcare) we also value Veeva Systems Inc, BrightSpring Health Services, Inc, Hinge Health, Inc, HealthEquity, Inc, 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 Pro Medicus Ltd stock attractive at the current price?
The data as of Nov 6, 2026: price A$205.13, calculated fair value A$85.12 (−59%), Quality Score 73/100, from 26 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 PME calculated?
We run Pro Medicus Ltd through 26 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 A$85.12, 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 15.5% above its aggregate fair value. Pro Medicus Ltd itself currently trades above fair value. 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 Pro Medicus Ltd (PME)?
The closing price on Nov 6, 2026 was A$205.13. Our model-based fair value is A$85.12, about 59% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Pro Medicus Ltd right now?
The price sits above even our optimistic bull case (A$199.90). The favourable scenario is already priced in. The model range is unusually wide (A$48.10 to A$199.90). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (73/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Pro Medicus Ltd (PME) come from?
Earnings per share at Pro Medicus Ltd grew +42.5 % a year from 2015 to 2026. Broken into its drivers: revenue per share +26.3 %, EBIT margin +8.1 %, tax rate +0.5 %, residual (interest, one-offs) +3.8 %. 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 Pro Medicus Ltd
How large is the market capitalisation of Pro Medicus Ltd (PME)?
The market capitalisation of Pro Medicus Ltd is A$21.5B (≈ $14.8B). 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 Pro Medicus Ltd (PME)?
The price-to-sales ratio of Pro Medicus Ltd is 82.0 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Pro Medicus Ltd (PME)?
Earnings per share at Pro Medicus Ltd are A$2.54 (price ÷ EPS = P/E 80.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Pro Medicus Ltd (PME)?
The dividend yield of Pro Medicus Ltd is 0.3% (payout 50.0%, on adjusted earnings, reported 27.2%). 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 Pro Medicus Ltd (PME)?
The net margin of Pro Medicus Ltd is 101% (last twelve months), excl. one-off gain FY2026 55.1%. 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 Pro Medicus Ltd (PME)?
The return on equity (ROE) of Pro Medicus Ltd is 75.0% (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 Pro Medicus Ltd (PME)?
On an EBIT basis the return on assets of Pro Medicus Ltd is 40.7% (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 Pro Medicus Ltd (PME)?
The operating margin of Pro Medicus Ltd is 77.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Pro Medicus Ltd (PME)?
Revenue at Pro Medicus Ltd is growing +18.2% versus a year earlier (3y avg +28.0%). 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 Pro Medicus Ltd (PME)?
Earnings per share at Pro Medicus Ltd are growing +48.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Pro Medicus Ltd (PME) hold?
Pro Medicus Ltd holds more cash than debt, A$144M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Nov 6, 2026