HCA Healthcare Inc (HCA) 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 +35% for HCA.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.7% (average of 3 methods) values the shares at $669.90; the price of $438.12 is 35% below that value, and 77% of that value comes from beyond year five.
Leak Score 100/100 on 7 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 | HCA | THC |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $438.12 | $262.06 |
| Intrinsic value | $669.90 | $527.39 |
| Margin of safety | +35% | +50% |
| Leak Score | 100/100 (7/12) | 85/100 (10/12) |
| Market cap | $94.9B | $21.1B |
| Revenue growth, 5 years | 8.0% | 3.9% |
| Operating margin | 15.5% | 16.5% |
| Net margin | 8.8% | 10.3% |
| Return on equity | — | 53.3% |
| Debt to equity | — | 2.84 |
| P/E | 14.7x | 10.1x |
| Forward P/E | 13.7x | 12.4x |
| P/B | — | 4.5x |
| Dividend yield | 0.6% | — |