Tenet Healthcare Corporation

Valuation Analysis

About the Company

Tenet Healthcare Corporation operates as a diversified healthcare services company in the United States. The company operates through two segments: Hospital Operations and Services, and Ambulatory Care. Its general hospitals offer acute care services, operating and recovery rooms, radiology and respiratory therapy services, clinical laboratories, and pharmacies. The company also provides intensive and critical care, and/or coronary care units; cardiovascular, digestive disease, neurosciences, musculoskeletal, and obstetrics services; outpatient services, including physical therapy; tertiary care services, such as cardiothoracic surgery, complex spinal surgery, neonatal intensive care, and neurosurgery services; pediatric quaternary care services through heart, liver, and kidney transplants

Tenet Healthcare Corporation Stock at a Glance

Tenet Healthcare Corporation (THC) is currently trading at $174.66 with a market capitalization of $15B. The trailing P/E ratio stands at 9.08x, with a forward P/E of 9.85x. The 52-week range spans from $146.60 to $247.21; the current price is 29.3% below the yearly high. Year-over-year revenue growth stands at +2.8%. The net profit margin stands at 7.94%.

💰 Dividend

Tenet Healthcare Corporation currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

21 analysts rate Tenet Healthcare Corporation (THC) on consensus: Strong Buy. The average price target is $243.62, implying +39.48% from the current price. Analyst price targets range from $210.00 to $288.00.

Tenet Healthcare Corporation: The Investment Case in Detail

Tenet Healthcare Corporation (THC) operates in the Healthcare — specifically Medical Care Facilities — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Earnings growth of 87.6% is outpacing revenue, a sign of operational leverage — fixed costs are being absorbed across a larger base. The combination of a 41.26% gross margin and 17.94% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Return on equity of 30.29% places management among the most capital-efficient operators in the public market — every euro of shareholder capital is working hard.

The Bear Case

Revenue growth has slowed to just 2.8%, which is below nominal GDP — the business is no longer outgrowing the broader economy.

Valuation in Context

At a PEG of 4.31, investors are paying more than three times the growth rate for each unit of earnings — that pricing assumes growth not only continues but accelerates from here. The EV/EBITDA multiple of 6.33x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The analyst consensus price target implies 39.48% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, higher leverage relative to equity.

Trading Data

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