Tenet Healthcare Corporation logo THC - Tenet Healthcare Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY 0
BUY 26
HOLD 6
SELL 0
STRONG
SELL 0
| PRICE TARGET: $259.50 DETAILS
HIGH: $288.00
LOW: $210.00
MEDIAN: $262.50
CONSENSUS: $259.50
UPSIDE: 49.33%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Moderate
Trading 31.7% below fair value
Current Price $173.78
Bear Case $203.51 17.1% upside ($203.51 - $173.78) / $173.78 = 17.1% $16.81 × 12x P/E
Fair Value $254.38 46.4% upside ($254.38 - $173.78) / $173.78 = 46.4% $16.81 × 15x P/E
Bull Case $305.26 75.7% upside ($305.26 - $173.78) / $173.78 = 75.7% $16.81 × 18x P/E

Adjust Assumptions

15.0x
16.81$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 10.3x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $259.50 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $254.38 per share.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples