Ensign Group Inc (ENSG) is overvalued and Tenet Healthcare Corp (THC) is undervalued.
Against our estimates of intrinsic value, THC trades at the wider discount: a margin of safety of +50%, against -25% for ENSG.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $141.03; the price of $176.32 is 25% above that value, and 80% of that value comes from beyond year five.
Leak Score 43/100 on 3 of 12 signals
Discounting its cash flows at 8.8% (average of 3 methods) values the shares at $527.39; the price of $262.06 is 50% below that value, and 76% of that value comes from beyond year five.
Leak Score 85/100 on 10 of 12 signals
| Metric | ENSG | THC |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $176.32 | $262.06 |
| Intrinsic value | $141.03 | $527.39 |
| Margin of safety | -25% | +50% |
| Leak Score | 43/100 (3/12) | 85/100 (10/12) |
| Market cap | $10.3B | $21.1B |
| Revenue growth, 5 years | 16.5% | 3.9% |
| Operating margin | 8.8% | 16.5% |
| Net margin | 6.9% | 10.3% |
| Return on equity | 17.0% | 53.3% |
| Debt to equity | 0.92 | 2.84 |
| P/E | 27.6x | 10.1x |
| Forward P/E | 20.6x | 12.4x |
| P/B | 4.2x | 4.5x |
| Dividend yield | 0.1% | — |