Is HCA Healthcare Inc (HCA) Stock Over or Undervalued?

HCA Healthcare Inc (HCA) receives a strong valuation ranking of 79 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. HCA has a better value than 79% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

HCA gets a 79 Valuation Rank today. Find out what this means to you and get the rest of the rankings on HCA!

See Full HCA Report

Metrics Analysis

HCA has a trailing twelve month Price to Earnings (PE) ratio of 17.5. The historical average of roughly 15 shows a average value for HCA stock as investors are paying fair share prices relative to the company's earnings. HCA's average trailing PE ratio shows that the firm has been trading around its fair market value recently. Its trailing 12-month earnings per share (EPS) of 14.59 justifies the stock's current price. However, trailing PE ratios do not factor in the company's projected growth rate, resulting in many newer firms having high PE ratios due to high growth potential enticing investors despite inadequate earnings. HCA currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 1.4. The market is currently overvaluing HCA in relation to its projected growth due to the PEG ratio being above the fair market value of 1. HCA's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.

Summary

All together these valuation metrics paint a pretty poor picture for HCA at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for HCA are worse than the average of the market resulting in a valuation score of 79. Click Here to get the full Report on HCA Healthcare Inc (HCA) stock.