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Tenet Healthcare Corp. – General Medical and Surgical Hospitals
Tenet Healthcare Corporation is a diversified healthcare services company headquartered in Dallas with 110,000 employees. Through an expansive care network that includes United Surgical Partners International, we operate 65 hospitals and approximately 550 other healthcare facilities, including surgical hospitals, ambulatory surgery centers, urgent care and imaging centers and other care sites and clinics. Tenet Healthcare Corporation also operates Conifer Health Solutions, which provides revenue cycle management and value-based care services to hospitals, health systems, physician practices, employers and other clients. Across the Tenet enterprise, we are united by our mission to deliver quality, compassionate care in the communities we serve.
Analysis Results
Intrinsic Value $1,214.91
Latest Price $57.60
Relative Value 95% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 17.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 3.21 3.03
2024 3.79 3.36
2025 4.47 3.73
2026 5.27 4.15
2027 6.22 4.61
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 151 billion. This corresponds to a present value of 105 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 18.9 billion. Adding in the terminal value gives a total present value of 124 billion.

There are presently 102.0 million outstanding shares, so the intrinsic value per share is 1214.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,981,000,000
Current Cash 858,000,000
Current Liabilities 4,476,000,000
Current Debt 145,000,000
Non-Cash Working Capital (NCWC) 792,000,000
Change in NCWC 1,055,000,000
EBIT 2,628,000,000
Tax Provision 344,000,000
Depreciation and Amortization 841,000,000
Capital Expenditure -762,000,000
Unlevered Free Cash Flow 3,089,357,142
Current Assets 7,075,000,000
Current Cash 2,364,000,000
Current Liabilities 5,109,000,000
Current Debt 135,000,000
Non-Cash Working Capital (NCWC) -263,000,000
Change in NCWC -262,000,000
EBIT 2,627,000,000
Tax Provision 411,000,000
Depreciation and Amortization 855,000,000
Capital Expenditure -658,000,000
Unlevered Free Cash Flow 1,990,126,588
Current Assets 7,147,000,000
Current Cash 2,446,000,000
Current Liabilities 4,847,000,000
Current Debt 145,000,000
Non-Cash Working Capital (NCWC) -1,000,000
Change in NCWC -786,000,000
EBIT 2,309,000,000
Tax Provision -97,000,000
Depreciation and Amortization 857,000,000
Capital Expenditure -540,000,000
Unlevered Free Cash Flow 1,840,000,000
Current Assets 5,081,000,000
Current Cash 262,000,000
Current Liabilities 4,205,000,000
Current Debt 171,000,000
Non-Cash Working Capital (NCWC) 785,000,000
Change in NCWC -53,000,000
EBIT 1,854,000,000
Tax Provision 153,000,000
Depreciation and Amortization 850,000,000
Capital Expenditure -670,000,000
Unlevered Free Cash Flow 1,022,682,432
Current Assets 4,636,000,000
Current Cash 411,000,000
Current Liabilities 3,857,000,000
Current Debt 470,000,000
Non-Cash Working Capital (NCWC) 838,000,000
Change in NCWC 62,000,000
EBIT 1,767,000,000
Tax Provision 176,000,000
Depreciation and Amortization 802,000,000
Capital Expenditure -617,000,000
Unlevered Free Cash Flow 1,527,314,553
Current Assets 5,573,000,000
Current Cash 611,000,000
Current Liabilities 4,332,000,000
Current Debt 146,000,000
Non-Cash Working Capital (NCWC) 776,000,000
Change in NCWC 78,000,000
EBIT 1,533,000,000
Tax Provision 219,000,000
Depreciation and Amortization 870,000,000
Capital Expenditure -707,000,000
Unlevered Free Cash Flow 1,774,000,000
Current Assets 5,257,000,000
Current Cash 716,000,000
Current Liabilities 4,034,000,000
Current Debt 191,000,000
Non-Cash Working Capital (NCWC) 698,000,000
Change in NCWC 64,000,000
EBIT 1,563,000,000
Tax Provision 67,000,000
Depreciation and Amortization 850,000,000
Capital Expenditure -875,000,000
Unlevered Free Cash Flow 1,179,737,903
Current Assets 5,171,000,000
Current Cash 356,000,000
Current Liabilities 4,308,000,000
Current Debt 127,000,000
Non-Cash Working Capital (NCWC) 634,000,000
Change in NCWC -425,000,000
EBIT 1,479,000,000
Tax Provision 68,000,000
Depreciation and Amortization 797,000,000
Capital Expenditure -842,000,000
Unlevered Free Cash Flow 310,583,333
Current Assets 4,717,000,000
Current Cash 193,000,000
Current Liabilities 3,577,000,000
Current Debt 112,000,000
Non-Cash Working Capital (NCWC) 1,059,000,000
Change in NCWC 241,000,000
EBIT 1,103,000,000
Tax Provision 49,000,000
Depreciation and Amortization 849,000,000
Capital Expenditure -933,000,000
Unlevered Free Cash Flow 892,333,333
Current Assets 3,710,000,000
Current Cash 113,000,000
Current Liabilities 2,928,000,000
Current Debt 149,000,000
Non-Cash Working Capital (NCWC) 818,000,000
Change in NCWC 170,000,000
EBIT 797,000,000
Tax Provision -65,000,000
Depreciation and Amortization 545,000,000
Capital Expenditure -691,000,000
Unlevered Free Cash Flow 821,000,000
Current Assets 2,681,000,000
Current Cash 364,000,000
Current Liabilities 1,763,000,000
Current Debt 94,000,000
Non-Cash Working Capital (NCWC) 648,000,000
Change in NCWC 153,000,000
EBIT 773,000,000
Tax Provision 125,000,000
Depreciation and Amortization 430,000,000
Capital Expenditure -508,000,000
Unlevered Free Cash Flow 558,703,592

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