Chemed Corporation (CHE) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+3.5%

$559.94

vs $541.15 price

Levered DCF

$598.37

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

9.78

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.23×	26.36×	32.29×	30.53×	30.87×	26.6×	31.9×	22.13×
P/B	6.29×	7.11×	7.94×	9.54×	13.3×	9.43×	9.65×	7.69×
P/S	2.43×	3.27×	3.89×	3.57×	3.88×	4.09×	3.62×	2.55×
EV / EBITDA	14.78×	17.06×	20.98×	19.81×	20.87×	18.62×	23.2×	16.35×
Gross margin	30.0%	35.1%	35.3%	35.8%	36.0%	33.7%	31.8%	31.1%
Operating margin	13.4%	15.1%	15.0%	16.1%	16.0%	18.7%	13.3%	13.7%
Net margin	10.5%	12.4%	12.0%	11.7%	12.6%	15.4%	11.3%	11.5%
Current ratio	1.05×	1.38×	1.61×	0.92×	0.76×	1.1×	0.73×	0.83×
Debt / equity	0.16×	0.13×	0.14×	0.31×	0.52×	0.15×	0.3×	0.15×
Interest coverage	193.28×	205.89×	109.58×	74.93×	183.64×	165.47×	56.75×	48.82×
Dividend yield	0.5%	0.3%	0.3%	0.3%	0.3%	0.2%	0.3%	0.4%
Payout ratio	11.9%	9.0%	8.6%	8.8%	8.2%	6.6%	9.0%	9.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	27.1%	27.0%	24.6%	31.3%	43.1%	35.4%	30.3%	34.8%
Return on invested capital	18.0%	19.4%	18.8%	21.9%	24.4%	26.8%	20.7%	26.7%
Return on assets	16.2%	18.1%	16.3%	17.3%	20.0%	22.3%	17.3%	21.1%
Free cash flow yield	5.3%	4.6%	3.1%	3.3%	3.0%	5.1%	3.5%	5.1%
Earnings yield	4.3%	3.8%	3.1%	3.3%	3.2%	3.8%	3.1%	4.5%
Enterprise value	$6.2B	$7.9B	$8.7B	$7.8B	$8.6B	$8.5B	$7.2B	$4.6B
Net debt / EBITDA	0.19×	-0.08×	-0.26×	0.44×	0.71×	-0.06×	0.67×	0.3×
Cash conversion cycle (days)	17	17	16	15	7	10	15	11