Intrinsic value of Tenet Healthcare - THC

Previous Close

$33.99

  Intrinsic Value

$17.17

stock screener

  Rating & Target

sell

-49%

Previous close

$33.99

 
Intrinsic value

$17.17

 
Up/down potential

-49%

 
Rating

sell

We calculate the intrinsic value of THC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 3.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  19,563
  20,013
  20,527
  21,104
  21,744
  22,446
  23,211
  24,038
  24,929
  25,886
  26,910
  28,002
  29,165
  30,401
  31,712
  33,102
  34,573
  36,128
  37,772
  39,508
  41,339
  43,270
  45,306
  47,451
  49,710
  52,088
  54,592
  57,226
  59,997
  62,912
Variable operating expenses, $m
  13,050
  13,330
  13,650
  14,009
  14,408
  14,844
  15,320
  15,835
  16,390
  16,985
  16,743
  17,423
  18,146
  18,915
  19,731
  20,596
  21,511
  22,479
  23,502
  24,582
  25,721
  26,923
  28,189
  29,524
  30,929
  32,409
  33,967
  35,606
  37,330
  39,144
Fixed operating expenses, $m
  5,634
  5,758
  5,885
  6,014
  6,147
  6,282
  6,420
  6,561
  6,706
  6,853
  7,004
  7,158
  7,316
  7,477
  7,641
  7,809
  7,981
  8,157
  8,336
  8,519
  8,707
  8,898
  9,094
  9,294
  9,499
  9,708
  9,921
  10,139
  10,362
  10,590
Total operating expenses, $m
  18,684
  19,088
  19,535
  20,023
  20,555
  21,126
  21,740
  22,396
  23,096
  23,838
  23,747
  24,581
  25,462
  26,392
  27,372
  28,405
  29,492
  30,636
  31,838
  33,101
  34,428
  35,821
  37,283
  38,818
  40,428
  42,117
  43,888
  45,745
  47,692
  49,734
Operating income, $m
  878
  924
  992
  1,080
  1,190
  1,320
  1,470
  1,642
  1,834
  2,048
  3,162
  3,421
  3,703
  4,009
  4,340
  4,697
  5,081
  5,493
  5,934
  6,407
  6,911
  7,449
  8,023
  8,633
  9,282
  9,971
  10,704
  11,481
  12,305
  13,178
EBITDA, $m
  3,447
  3,532
  3,644
  3,782
  3,947
  4,138
  4,354
  4,597
  4,867
  5,163
  5,487
  5,840
  6,223
  6,635
  7,080
  7,557
  8,068
  8,614
  9,198
  9,820
  10,483
  11,188
  11,937
  12,732
  13,577
  14,472
  15,420
  16,425
  17,488
  18,614
Interest expense (income), $m
  932
  1,016
  876
  909
  948
  991
  1,038
  1,091
  1,148
  1,210
  1,276
  1,348
  1,424
  1,505
  1,592
  1,684
  1,782
  1,886
  1,996
  2,112
  2,235
  2,364
  2,501
  2,645
  2,797
  2,957
  3,126
  3,303
  3,490
  3,687
  3,893
Earnings before tax, $m
  -138
  49
  83
  133
  199
  281
  380
  494
  625
  772
  1,815
  1,997
  2,197
  2,417
  2,655
  2,914
  3,195
  3,497
  3,822
  4,172
  4,547
  4,948
  5,378
  5,836
  6,325
  6,846
  7,400
  7,991
  8,618
  9,284
Tax expense, $m
  0
  13
  22
  36
  54
  76
  102
  133
  169
  208
  490
  539
  593
  652
  717
  787
  863
  944
  1,032
  1,126
  1,228
  1,336
  1,452
  1,576
  1,708
  1,848
  1,998
  2,157
  2,327
  2,507
Net income, $m
  -138
  35
  60
  97
  145
  205
  277
  361
  456
  564
  1,325
  1,458
  1,604
  1,764
  1,938
  2,127
  2,332
  2,553
  2,790
  3,046
  3,319
  3,612
  3,926
  4,260
  4,617
  4,997
  5,402
  5,833
  6,291
  6,778

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  23,857
  24,406
  25,033
  25,737
  26,517
  27,373
  28,306
  29,315
  30,402
  31,569
  32,817
  34,149
  35,567
  37,074
  38,673
  40,368
  42,162
  44,059
  46,064
  48,180
  50,413
  52,769
  55,251
  57,867
  60,622
  63,522
  66,575
  69,788
  73,168
  76,723
Adjusted assets (=assets-cash), $m
  23,857
  24,406
  25,033
  25,737
  26,517
  27,373
  28,306
  29,315
  30,402
  31,569
  32,817
  34,149
  35,567
  37,074
  38,673
  40,368
  42,162
  44,059
  46,064
  48,180
  50,413
  52,769
  55,251
  57,867
  60,622
  63,522
  66,575
  69,788
  73,168
  76,723
Revenue / Adjusted assets
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
Average production assets, $m
  16,902
  17,291
  17,735
  18,234
  18,787
  19,393
  20,054
  20,769
  21,539
  22,366
  23,250
  24,194
  25,198
  26,266
  27,399
  28,600
  29,871
  31,215
  32,635
  34,135
  35,717
  37,385
  39,144
  40,997
  42,949
  45,004
  47,167
  49,443
  51,838
  54,356
Working capital, $m
  -900
  -921
  -944
  -971
  -1,000
  -1,033
  -1,068
  -1,106
  -1,147
  -1,191
  -1,238
  -1,288
  -1,342
  -1,398
  -1,459
  -1,523
  -1,590
  -1,662
  -1,738
  -1,817
  -1,902
  -1,990
  -2,084
  -2,183
  -2,287
  -2,396
  -2,511
  -2,632
  -2,760
  -2,894
Total debt, $m
  12,876
  13,370
  13,934
  14,568
  15,270
  16,041
  16,880
  17,788
  18,767
  19,817
  20,940
  22,139
  23,415
  24,771
  26,211
  27,736
  29,351
  31,058
  32,862
  34,767
  36,777
  38,897
  41,131
  43,485
  45,964
  48,575
  51,323
  54,214
  57,256
  60,455
Total liabilities, $m
  21,471
  21,965
  22,529
  23,163
  23,865
  24,636
  25,475
  26,383
  27,362
  28,412
  29,535
  30,734
  32,010
  33,366
  34,806
  36,331
  37,946
  39,653
  41,457
  43,362
  45,372
  47,492
  49,726
  52,080
  54,559
  57,170
  59,918
  62,809
  65,851
  69,050
Total equity, $m
  2,386
  2,441
  2,503
  2,574
  2,652
  2,737
  2,831
  2,931
  3,040
  3,157
  3,282
  3,415
  3,557
  3,707
  3,867
  4,037
  4,216
  4,406
  4,606
  4,818
  5,041
  5,277
  5,525
  5,787
  6,062
  6,352
  6,658
  6,979
  7,317
  7,672
Total liabilities and equity, $m
  23,857
  24,406
  25,032
  25,737
  26,517
  27,373
  28,306
  29,314
  30,402
  31,569
  32,817
  34,149
  35,567
  37,073
  38,673
  40,368
  42,162
  44,059
  46,063
  48,180
  50,413
  52,769
  55,251
  57,867
  60,621
  63,522
  66,576
  69,788
  73,168
  76,722
Debt-to-equity ratio
  5.400
  5.480
  5.570
  5.660
  5.760
  5.860
  5.960
  6.070
  6.170
  6.280
  6.380
  6.480
  6.580
  6.680
  6.780
  6.870
  6.960
  7.050
  7.130
  7.220
  7.300
  7.370
  7.440
  7.510
  7.580
  7.650
  7.710
  7.770
  7.830
  7.880
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -138
  35
  60
  97
  145
  205
  277
  361
  456
  564
  1,325
  1,458
  1,604
  1,764
  1,938
  2,127
  2,332
  2,553
  2,790
  3,046
  3,319
  3,612
  3,926
  4,260
  4,617
  4,997
  5,402
  5,833
  6,291
  6,778
Depreciation, amort., depletion, $m
  2,569
  2,607
  2,652
  2,702
  2,757
  2,818
  2,884
  2,955
  3,032
  3,115
  2,325
  2,419
  2,520
  2,627
  2,740
  2,860
  2,987
  3,121
  3,264
  3,413
  3,572
  3,739
  3,914
  4,100
  4,295
  4,500
  4,717
  4,944
  5,184
  5,436
Funds from operations, $m
  2,431
  2,643
  2,712
  2,799
  2,902
  3,023
  3,161
  3,316
  3,488
  3,679
  3,650
  3,877
  4,124
  4,391
  4,678
  4,987
  5,319
  5,674
  6,054
  6,459
  6,891
  7,351
  7,840
  8,360
  8,912
  9,498
  10,119
  10,777
  11,475
  12,213
Change in working capital, $m
  -18
  -21
  -24
  -27
  -29
  -32
  -35
  -38
  -41
  -44
  -47
  -50
  -53
  -57
  -60
  -64
  -68
  -72
  -76
  -80
  -84
  -89
  -94
  -99
  -104
  -109
  -115
  -121
  -127
  -134
Cash from operations, $m
  2,449
  2,664
  2,736
  2,825
  2,932
  3,055
  3,196
  3,354
  3,529
  3,723
  3,697
  3,927
  4,177
  4,448
  4,739
  5,051
  5,387
  5,746
  6,129
  6,539
  6,975
  7,440
  7,934
  8,459
  9,016
  9,607
  10,234
  10,899
  11,602
  12,347
Maintenance CAPEX, $m
  -1,657
  -1,690
  -1,729
  -1,774
  -1,823
  -1,879
  -1,939
  -2,005
  -2,077
  -2,154
  -2,237
  -2,325
  -2,419
  -2,520
  -2,627
  -2,740
  -2,860
  -2,987
  -3,121
  -3,264
  -3,413
  -3,572
  -3,739
  -3,914
  -4,100
  -4,295
  -4,500
  -4,717
  -4,944
  -5,184
New CAPEX, $m
  -334
  -389
  -444
  -499
  -553
  -607
  -660
  -715
  -770
  -827
  -884
  -944
  -1,005
  -1,068
  -1,133
  -1,201
  -1,271
  -1,344
  -1,420
  -1,500
  -1,582
  -1,669
  -1,759
  -1,853
  -1,952
  -2,055
  -2,163
  -2,276
  -2,395
  -2,519
Cash from investing activities, $m
  -1,991
  -2,079
  -2,173
  -2,273
  -2,376
  -2,486
  -2,599
  -2,720
  -2,847
  -2,981
  -3,121
  -3,269
  -3,424
  -3,588
  -3,760
  -3,941
  -4,131
  -4,331
  -4,541
  -4,764
  -4,995
  -5,241
  -5,498
  -5,767
  -6,052
  -6,350
  -6,663
  -6,993
  -7,339
  -7,703
Free cash flow, $m
  458
  585
  562
  553
  556
  570
  596
  634
  682
  742
  576
  659
  753
  860
  979
  1,111
  1,256
  1,415
  1,588
  1,776
  1,979
  2,199
  2,436
  2,691
  2,964
  3,257
  3,571
  3,906
  4,264
  4,645
Issuance/(repayment) of debt, $m
  -2,061
  494
  564
  634
  702
  771
  839
  908
  978
  1,050
  1,123
  1,199
  1,276
  1,356
  1,439
  1,525
  1,615
  1,707
  1,804
  1,905
  2,010
  2,120
  2,234
  2,354
  2,479
  2,610
  2,748
  2,891
  3,042
  3,199
Issuance/(repurchase) of shares, $m
  2,670
  19
  2
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  609
  513
  566
  634
  702
  771
  839
  908
  978
  1,050
  1,123
  1,199
  1,276
  1,356
  1,439
  1,525
  1,615
  1,707
  1,804
  1,905
  2,010
  2,120
  2,234
  2,354
  2,479
  2,610
  2,748
  2,891
  3,042
  3,199
Total cash flow (excl. dividends), $m
  1,068
  1,098
  1,129
  1,187
  1,258
  1,341
  1,435
  1,542
  1,661
  1,792
  1,699
  1,858
  2,030
  2,216
  2,418
  2,636
  2,870
  3,122
  3,392
  3,681
  3,989
  4,319
  4,671
  5,045
  5,444
  5,868
  6,319
  6,797
  7,305
  7,844
Retained Cash Flow (-), $m
  -2,670
  -55
  -63
  -70
  -78
  -86
  -93
  -101
  -109
  -117
  -125
  -133
  -142
  -151
  -160
  -169
  -179
  -190
  -200
  -212
  -223
  -236
  -248
  -262
  -275
  -290
  -305
  -321
  -338
  -355
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  58
  59
  60
  62
  63
  65
  67
  70
  72
  75
  78
  81
  84
  87
  91
  95
  99
  104
  108
  113
  119
  124
  130
  136
  142
  149
  156
  164
  172
  180
Cash available for distribution, $m
  -1,603
  1,043
  1,067
  1,116
  1,180
  1,255
  1,342
  1,441
  1,552
  1,675
  1,575
  1,724
  1,888
  2,066
  2,258
  2,467
  2,691
  2,932
  3,191
  3,469
  3,766
  4,084
  4,422
  4,784
  5,168
  5,578
  6,013
  6,476
  6,967
  7,489
Discount rate, %
  14.30
  15.02
  15.77
  16.55
  17.38
  18.25
  19.16
  20.12
  21.13
  22.18
  23.29
  24.46
  25.68
  26.96
  28.31
  29.73
  31.22
  32.78
  34.41
  36.14
  37.94
  39.84
  41.83
  43.92
  46.12
  48.42
  50.85
  53.39
  56.06
  58.86
PV of cash for distribution, $m
  -1,402
  788
  687
  605
  529
  459
  393
  332
  276
  226
  157
  125
  97
  73
  54
  38
  27
  18
  12
  7
  4
  3
  1
  1
  0
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  49.6
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5
  49.5

Tenet Healthcare Corporation (Tenet) is a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets in the United States. The Company's segments include Hospital Operations and Other, Ambulatory Care and Conifer. As of December 31, 2016, its subsidiaries operated 79 hospitals, including three academic medical centers, two children's hospitals, two specialty hospitals and one critical access hospital. The Company's Ambulatory Care segment includes the operations of its USPI joint venture and its Aspen facilities. As of December 31, 2016, Conifer provided one or more of the business process services described above from 20 service centers to more than 800 Tenet and non-Tenet hospital and other clients in over 40 states. As of December 31, 2016, the Company operated 20 short-stay surgical hospitals, over 470 outpatient centers, and nine facilities in the United Kingdom.

FINANCIAL RATIOS  of  Tenet Healthcare (THC)

Valuation Ratios
P/E Ratio -17.6
Price to Sales 0.2
Price to Book 8.1
Price to Tangible Book
Price to Cash Flow 6.1
Price to Free Cash Flow -10.7
Growth Rates
Sales Growth Rate 5.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 3.9%
Cap. Spend. - 3 Yr. Gr. Rate 4.8%
Financial Strength
Quick Ratio 4
Current Ratio 0.3
LT Debt to Equity 3612.5%
Total Debt to Equity 3658.3%
Interest Coverage 1
Management Effectiveness
Return On Assets 2%
Ret/ On Assets - 3 Yr. Avg. 2.1%
Return On Total Capital -1.2%
Ret/ On T. Cap. - 3 Yr. Avg. -0.7%
Return On Equity -34.7%
Return On Equity - 3 Yr. Avg. -17.9%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 84.1%
Gross Margin - 3 Yr. Avg. 84.1%
EBITDA Margin 10.3%
EBITDA Margin - 3 Yr. Avg. 10.1%
Operating Margin 6.2%
Oper. Margin - 3 Yr. Avg. 5.8%
Pre-Tax Margin 1.3%
Pre-Tax Margin - 3 Yr. Avg. 1%
Net Profit Margin -1%
Net Profit Margin - 3 Yr. Avg. -0.6%
Effective Tax Rate 27%
Eff/ Tax Rate - 3 Yr. Avg. 35.9%
Payout Ratio 0%

THC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the THC stock intrinsic value calculation we used $19179 million for the last fiscal year's total revenue generated by Tenet Healthcare. The default revenue input number comes from 2017 income statement of Tenet Healthcare. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our THC stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 14.3%, whose default value for THC is calculated based on our internal credit rating of Tenet Healthcare, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Tenet Healthcare.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of THC stock the variable cost ratio is equal to 66.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $5513 million in the base year in the intrinsic value calculation for THC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6.8% for Tenet Healthcare.

Corporate tax rate of 27% is the nominal tax rate for Tenet Healthcare. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the THC stock is equal to 0.3%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for THC are equal to 86.4%.

Life of production assets of 10 years is the average useful life of capital assets used in Tenet Healthcare operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for THC is equal to -4.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-147 million for Tenet Healthcare - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 101 million for Tenet Healthcare is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Tenet Healthcare at the current share price and the inputted number of shares is $3.4 billion.

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COMPANY NEWS

▶ Why Arizona Care Network plans to exit a Medicare program   [Aug-14-18 09:00AM  American City Business Journals]
▶ Tenet: 2Q Earnings Snapshot   [04:30PM  Associated Press]
▶ State report finds most Massachusetts hospitals are profitable   [Aug-01-18 06:30AM  American City Business Journals]
▶ Tenet shedding hospitals, debt as UnitedHealth explores Conifer acquisition   [Jul-20-18 07:53AM  American City Business Journals]
▶ Tenet to Report Second Quarter Results on August 6   [Jul-10-18 09:00AM  Business Wire]
▶ 10 Billion-Dollar Stocks for Q3 and Beyond   [Jul-09-18 10:16AM  InvestorPlace]
▶ Your first trade for Tuesday, June 26   [Jun-26-18 09:17AM  CNBC]
▶ Final Trade: GIS, WMT & more   [Jun-25-18 05:30PM  CNBC Videos]
▶ Your first trade for Wednesday, June 20   [Jun-20-18 08:59AM  CNBC]
▶ EXCLUSIVE: Abrazo enters East Valley with hospital in Mesa   [Jun-19-18 07:09PM  American City Business Journals]
▶ Social Security will be insolvent by 2034, Medicare much sooner   [Jun-06-18 01:04PM  Yahoo Finance Video]
▶ New Strong Buy Stocks for May 23rd   [May-23-18 11:02AM  Zacks]
▶ Why health care will cost you more next year   [May-22-18 01:22PM  Yahoo Finance Video]
▶ Tenet Announces Executive Leadership Appointments   [May-16-18 04:15PM  Business Wire]
▶ Rally Resumes Despite Iran Deal News   [May-08-18 09:15AM  Zacks]
▶ Glenview CEO Says Tenet Healthcare's Best Days Are Ahead   [May-07-18 02:03PM  Bloomberg Video]
▶ Why Tenet Healthcare Is on a 29% Two-Day Run Higher   [May-02-18 06:03PM  Motley Fool]
▶ Company News for May 2, 2018   [10:17AM  Zacks]
▶ Tenet Healthcare up after earnings   [03:02PM  CNBC Videos]
▶ Why Tenet Healthcare Is Soaring Today   [11:06AM  Motley Fool]
▶ After-hours buzz: CGNX, AKAM & more   [Apr-30-18 05:37PM  CNBC]
▶ Tenet: 1Q Earnings Snapshot   [04:27PM  Associated Press]
▶ Tenet Completes Purchase of USPI from WCAS   [04:30PM  Business Wire]
▶ Tenet Healthcare: Focus on the Bigger Picture   [Apr-11-18 08:43AM  TheStreet.com]
▶ Tenet to Report First Quarter Results on April 30   [Apr-05-18 11:30AM  Business Wire]
▶ Tenet Reaches Agreement with Glenview   [08:00AM  Business Wire]
▶ "Fast Money" final trades: BAC, BA and more   [Mar-23-18 05:25PM  CNBC Videos]
▶ Your first trade for Thursday, March 15   [Mar-15-18 09:08AM  CNBC]
▶ "Fast Money" final trades: IBM, JPM and more   [Mar-14-18 05:59PM  CNBC Videos]
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