PACS Group Inc (PACS) is slightly 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 -18% for PACS.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 11.7% (average of 3 methods) values the shares at $35.24; the price of $41.53 is 18% above that value, and 69% of that value comes from beyond year five.
Leak Score 14/100 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 | PACS | THC |
|---|---|---|
| Verdict | Slightly overvalued | Undervalued |
| Price | $41.53 | $262.06 |
| Intrinsic value | $35.24 | $527.39 |
| Margin of safety | -18% | +50% |
| Leak Score | 14/100 (3/12) | 85/100 (10/12) |
| Market cap | $6.6B | $21.1B |
| Revenue growth, 5 years | 45.9% | 3.9% |
| Operating margin | 7.4% | 16.5% |
| Net margin | 4.8% | 10.3% |
| Return on equity | 28.1% | 53.3% |
| Debt to equity | 3.07 | 2.84 |
| P/E | 24.9x | 10.1x |
| Forward P/E | 15.9x | 12.4x |
| P/B | 5.9x | 4.5x |