Fresenius Medical Care AG ADR (FMS) is undervalued 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 +48% for FMS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.1% (average of 3 methods) values the shares at $42.92; the price of $22.50 is 48% below that value, and 83% of that value comes from beyond year five.
Leak Score 54/100 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 | FMS | THC |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $22.50 | $262.06 |
| Intrinsic value | $42.92 | $527.39 |
| Margin of safety | +48% | +50% |
| Leak Score | 54/100 (3/12) | 85/100 (10/12) |
| Market cap | $12.0B | $21.1B |
| Revenue growth, 5 years | 1.7% | 3.9% |
| Operating margin | 10.9% | 16.5% |
| Net margin | 4.8% | 10.3% |
| Return on equity | 7.3% | 53.3% |
| Debt to equity | 0.87 | 2.84 |
| P/E | 11.6x | 10.1x |
| Forward P/E | 9.2x | 12.4x |
| P/B | 0.8x | 4.5x |
| Dividend yield | 3.7% | — |