Tenet Healthcare Corporation (THC) 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

+16.5%

$312.55

vs $268.19 price

Levered DCF

$638.07

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.27

Grey zone

Rating

Overall 4 / 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	12.73×	3.82×	12.57×	12.71×	9.55×	10.51×	-16.98×	15.72×
P/B	4.25×	2.93×	4.78×	4.57×	8.49×	149.75×	-10.6×	-14.71×
P/S	0.84×	0.59×	0.37×	0.27×	0.45×	0.24×	0.21×	0.1×
EV / EBITDA	6.29×	3.42×	6.33×	6.32×	6×	6.9×	8.55×	6.64×
Gross margin	82.3%	39.7%	38.0%	36.8%	37.3%	35.3%	36.3%	36.4%
Operating margin	16.1%	28.8%	12.2%	12.2%	14.7%	11.3%	8.3%	8.9%
Net margin	6.6%	15.5%	3.0%	2.1%	4.7%	2.3%	-1.2%	0.6%
Current ratio	1.76×	1.78×	1.51×	1.34×	1.38×	1.47×	1.21×	1.2×
Debt / equity	3.12×	3.43×	9.33×	13.2×	15.22×	561.39×	-39.76×	-124.59×
Interest coverage	4.19×	7.21×	2.79×	2.62×	3.11×	1.98×	1.56×	1.63×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	33.3%	76.7%	38.0%	36.0%	88.9%	1425.0%	58.0%	-87.4%
Return on invested capital	11.5%	18.5%	8.6%	7.6%	9.9%	8.9%	4.0%	6.3%
Return on assets	4.7%	11.1%	2.2%	1.5%	3.3%	1.5%	-0.9%	0.5%
Free cash flow yield	14.1%	9.1%	21.1%	6.2%	10.4%	68.4%	14.3%	24.7%
Earnings yield	7.9%	26.2%	8.0%	7.9%	10.5%	9.5%	-5.5%	5.9%
Enterprise value	$28.2B	$23.5B	$21.5B	$19.4B	$22B	$17.5B	$18.4B	$16.2B
Net debt / EBITDA	2.29×	1.64×	4.07×	4.62×	3.62×	5.24×	6.72×	5.92×
Cash conversion cycle (days)	-54	26	32	33	35	42	37	37