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Ramsay Health Care Limited (RHC) Fair Value & Analysis

Healthcare · AU · Market cap A$10.0B

RH Ramsay Health Care Limited RHC · AU
PriceA$44.89
Fair ValueA$69.84
Upside+55.6%
Quality46/100
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Mixed Growth
Thin margins · 1.6% net margin
Moderate debt · generates free cash flow
1.93% dividend yield
Mixed vs. peers (6/15)
Narrow moat 31/100
Evidence: High Range A$34.10 – A$105.58 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated today

Fair value updated Aug 13, 2026, revised from A$3.43 to A$69.84 (+1,936.2%) since Jul 19, 2026. Share price +4.4% over the past month.

Below-average quality, screening 56% undervalued on our models.

What matters now

  • The model range is unusually wide (A$34.10 to A$105.58). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (46/100) 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)

A$78.21 A$30.31 Fair Value A$69.84 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 A$30.31 – A$78.21 · fair‑value band A$34.10 – A$105.58 · the A$44.89 price screens below the A$69.84 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Ramsay Health Care Limited (RHC) currently trades at A$44.89, while our model-based Fair Value estimate is A$69.84, implying the stock looks roughly 55.6% undervalued today. The Quality Score stands at 46/100 (below-average 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, Ramsay Health Care Limited generated revenue of A$18.6B at a net margin of 1.6%. Revenue grew 9.7% year over year. It earns a return on equity of 5.1%. Net debt stands at A$11.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from A$34.10 (bear case) to A$105.58 (bull case); at A$44.89, 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. The share trades near its 52-week high and 49% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -14% fair-value upside, at 56%, RHC 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 A$17.23 A$44.56 A$89.11 80
Residual Income A$14.40 A$13.11 A$8.97 76
Rev-Margin DCF A$47.62 A$107.59 A$186.05 74
All 24 models by family
DCF Models
FCF DCF A$17.73 A$48.30 A$100.35 38
Owner Earnings A$16.13 A$43.75 31
5Y Revenue Exit A$47.62 A$110.28 A$197.78 39
5Y EBITDA Exit A$83.60 A$185.43 A$316.61 41
5Y P/E Exit A$0.4200 38
10Y Revenue Exit A$34.07 A$89.52 A$178.81 36
10Y EBITDA Exit A$60.30 A$143.75 A$277.27 37
10Y P/E Exit A$1.47 A$7.74 A$15.29 35
Earnings-Based
Graham-Dodd A$0.7100 A$3.43 A$4.72 54
Lynch FV A$0.9200 A$1.31 A$1.71 50
PEG = 1.0 A$0.9200 A$1.31 A$1.71 46
EPV A$54.73 A$66.57 A$76.78 59
Multiples
P/E Multiple A$1.72 A$2.29 A$2.86 63
P/S Multiple A$1.33 A$1.77 A$2.21 58
P/B Multiple A$1.33 A$1.77 A$2.21 55
EV/EBIT A$96.59 A$135.54 A$174.48 53
EV/EBITDA A$127.21 A$176.36 A$225.51 54
EV/Revenue A$63.14 A$98.88 A$134.62 43
Asset-Based
NCAV (Graham) A$10.88 A$14.58 A$21.76 50
Growth DCF
Growth DCF A$17.23 A$44.56 A$89.11 80
Rev-Margin DCF A$47.62 A$107.59 A$186.05 74
Economic Profit
Residual Income A$14.40 A$13.11 A$8.97 76
ROIC Compounder A$64.93 A$93.93 A$131.44 72
Growth Earnings
Growth-Adj P/E A$1.46 A$2.09 A$2.72 68

Widest divergence: DCF Models (A$89.52) versus Earnings-Based (A$1.31). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) A$18.6B
Revenue growth (YoY) +9.7%
Net margin 1.6%
Return on equity 5.1%
Free cash flow A$704M FY2025
P/E ratio 35.6
More key figures
Operating margin 5.6%
EPS (TTM) A$1.26
Dividend yield 1.9%
EPS growth (YoY) -1.2%
Net debt A$11.4B FY2025

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

Quality Score breakdown

Overall quality 46/100

Of which business quality 44 · Market factors (momentum, volatility) 72

Profitability 24
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 47
Earnings quality: real cash, not paper profit
Fin. Strength 25
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 77
Distance to the 52-week high (market factor)
Net Issuance 78
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

Ramsay Health Care Limited owns and operates hospitals in Australia and internationally. It offers health care services to public and private patients. The company was founded in 1964 and is based in St Leonards, Australia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Ramsay Health Care Limited reported revenue of A$17.8B in FY2025 versus A$12.9B in FY2021, a compound +8.4%/yr. Reported net income was A$24.0M in FY2025, compounding −51.9%/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)
A$17.8B
Latest YoY
+6.8%
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.
+10.8%
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.
+8.3%
Avg. growth/yr (28Y) 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.
+17.5%
Revenue +8.4%/yr
FY21 A$12.9B
FY22 A$13.1B
FY23 A$15.0B
FY24 A$16.7B
FY25 A$17.8B
Net income −51.9%/yr
FY21 A$449M
FY22 A$274M
FY23 A$298M
FY24 A$889M
FY25 A$24.0M
Character of growth · EPS growth decomposed (2014-2025) −0.4 % p.a.
Revenue per share +8.6 pp

of which total revenue +10.1 pp · buybacks/dilution −1.5 pp

EBIT margin −2.7 pp
Tax rate +1.6 pp
Residual (interest, one-offs) −7.9 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). "Ramsay Health Care Limited Fair Value". https://www.fairvalue-calculator.com/stock/RHC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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 46 · Below median
Fair Value upside +56% · Top 25%
Return on equity (TTM) 5% · Below median
Return on assets 3% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 6% · Below median
Revenue growth 10% · Above median
Dividend yield (TTM) 1.9% · Above median
Debt / equity 1.09× · Higher than 75% of peers

Valuation Multiples vs Medical Care Facilities median · lower = cheaper

P/E (TTM) 35.6× · Pricier than 75% of peers
P/B 1.40× · Cheaper than median
P/S (TTM) 0.38× · Cheaper than 75% of peers
P/FCF 10.0× · Pricier than 75% of peers
EV/EBITDA 7.1× · Cheaper than median
PEG 2.15× · Pricier than median

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 49 · sector 24
PAST 20 · sector 30
HEALTH 46 · sector 90
DIVIDEND 39 · 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.

Similar stocks

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

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Frequently asked questions

Is Ramsay Health Care Limited (RHC) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of A$69.84 versus a price of A$44.89, about +56% (undervalued).
What is the fair value of RHC?
Our model-based fair value for Ramsay Health Care Limited is A$69.84 (as of Aug 13, 2026), built from audited fundamentals. The current price is A$44.89.
What is the quality score of RHC?
Ramsay Health Care Limited has a Quality Score of 46/100. 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 Ramsay Health Care Limited (RHC)?
Ramsay Health Care Limited reported trailing-twelve-month revenue of about A$18.6B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of RHC?
The net profit margin of Ramsay Health Care Limited is about 1.6%, meaning it keeps roughly 1.6% of revenue as net income. Based on the latest reported figures.
Does Ramsay Health Care Limited pay a dividend?
Ramsay Health Care Limited currently shows a dividend yield of about 2.29% 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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