Using the industry peer median P/E multiple (trailing + forward), HCA Healthcare, Inc. (HCA) has a fair value of $673.84 based on 7 comparable companies in the Medical - Care Facilities industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| HCA Healthcare, Inc.HCA | 111,462 | 17.0x | 16.0x |
| Pfizer Inc.PFE | 156,770 | 20.3x | 9.3x |
| Stryker CorporationSYK | 127,271 | 39.6x | 22.2x |
| Bristol-Myers Squibb CompanyBMY | 121,119 | 17.2x | 9.5x |
| Vertex Pharmaceuticals IncorporatedVRTX | 115,820 | 29.8x | 23.6x |
| Medtronic plcMDT | 113,213 | 24.4x | 15.6x |
| McKesson CorporationMCK | 107,034 | 33.7x | 22.2x |
| CVS Health CorporationCVS | 91,014 | 51.5x | 10.0x |
| Industry Median | 29.8x | 15.6x | |
| (*) Profit after tax | 6,784 | 6,983 | |
| Equity Value | 201,919 | 109,006 | |
| (/) Outstanding shares | 231 | 231 | |
| Fair Price | $875 | $472 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.