Ramsay Health Care (ASX:RHC) Intrinsic Value: DCF (Dividends Based): A$13.83 (As of Jul. 20, 2026) — 723% Above Median

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Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
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Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:RHC Ramsay Health Care Ltd ASX:RHC
86 GF Score
Price A$43.02
GF Value A$50.82
Valuation Modestly Undervalued
! 9 Warning Signs
View Full Analysis

What is Ramsay Health Care Intrinsic Value: DCF (Dividends Based)?

Ramsay Health Care ASX:RHC -0.23% 86 Intrinsic Value: DCF (Dividends Based) is A$13.83 as of Jul. 20, 2026, which is 100% below its 10-year median of 1.68. GuruFocus rates ASX:RHC with a GF Score™ of 86/100 and a GF Value™ of A$50.82 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 83 Healthcare Providers & Services companies, Ramsay Health Care ranks worse than 92.77% on this metric.

As of today (2026-07-20), Ramsay Health Care's intrinsic value calculated from the Discounted Dividend model is A$13.83.

Note: Discounted Dividend model is only suitable for companies who have a consistant distribution history. If the company's dividends does not remain steady over a long period, results may not be accurate due to the low consistency. The model is also only suitable for predictable companies (Business Predictability Rank higher than 1-Star) with dividend payments. If the company's Predictability Rank is 1-Star or Not Rated, or if the company does not pay dividend, the data will not be stored into our database.

Ramsay Health Care's Predictability Rank is 3-Stars.

Margin of Safety % (DCF Dividends Based) using Discounted Dividend Model for Ramsay Health Care is -211.06%.

The historical rank and industry rank for Ramsay Health Care's Intrinsic Value: DCF (Dividends Based) or its related term are showing as below:

ASX:RHC' s Price-to-DCF (Dividends Based) Range Over the Past 10 Years
Min: 0.85   Med: 1.68   Max: 4.81
Current: 3.11

During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Dividends Based) Ratio of Ramsay Health Care was 4.81. The lowest was 0.85. And the median was 1.68.

ASX:RHC's Price-to-DCF (Dividends Based) is ranked worse than
92.77% of 83 companies
in the Healthcare Providers & Services industry
Industry Median: 1.18 vs ASX:RHC: 3.11

Ramsay Health Care  (ASX:RHC) Intrinsic Value: DCF (Dividends Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Dividends model evaluates the companies based on their power of future dividend distribution instead of their assets.


Be Aware

What you need to know about Discounted Dividends model:

1. The Discounted Dividends model evaluates a company based on its future dividends distribution power
2. Dividend growth is taken into account; therefore a company with a higher dividend growth rate is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies with consistently steady dividends distributed.
4. The Discounted Dividends model works poorly for inconsistent dividends distributor like high growth companies.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less dividends distributed.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) and Intrinsic Value: DCF (Dividends Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.


Ramsay Health Care Intrinsic Value: DCF (Dividends Based) Related Terms


Ramsay Health Care Intrinsic Value: DCF (Dividends Based) Historical Data

* Premium members only.

The historical data trend for Ramsay Health Care's Intrinsic Value: DCF (Dividends Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ramsay Health Care Intrinsic Value: DCF (Dividends Based) Chart

Ramsay Health Care Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Intrinsic Value: DCF (Dividends Based)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 32.10 15.23 13.45 13.40 13.01

Ramsay Health Care Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Intrinsic Value: DCF (Dividends Based) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 13.40 0.00 13.01 0.00

ASX:RHC vs HCA, THC, DVA: Intrinsic Value: DCF (Dividends Based) Comparison

For the Medical Care Facilities subindustry, Ramsay Health Care's Price-to-DCF (Dividends Based), along with its competitors' market caps and Price-to-DCF (Dividends Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ramsay Health Care Price-to-DCF (Dividends Based) vs Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's Price-to-DCF (Dividends Based) distribution charts can be found below:

* The bar in red indicates where Ramsay Health Care's Price-to-DCF (Dividends Based) falls into.


ASX:RHC
86GF Score
Ramsay Health Care Ltd ASX:RHC
Intrinsic Value: DCF (Dividends Based) is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ramsay Health Care Intrinsic Value: DCF (Dividends Based) Calculation

This is the intrinsic value calculated from the Discounted Dividend Model with default parameters. The calculation method is the same as Discounted Cash Flow model except adjusted dividend are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.

Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DDM calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.83%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Dividend Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year Dividend Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year Dividend Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year Dividend Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Ramsay Health Care's average Dividend Growth Rate in the past 10 years was -3.90%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Dividends per Share: adjusted dividends per share = A$1.1988.
GuruFocus uses adjusted dividends per share by default to ensure that the valuation reflects the total value of the company, as the actual dividend is only a portion of the total value.

All of the default settings can be changed in the DCF calculator and the results are calculated automatically.

Ramsay Health Care's Intrinsic Value: DCF (Dividends Based) for today is calculated as:

Intrinsic Value: DCF (Dividends Based)=Dividends per Share*{[(1+g1)/(1+d)+(1+g1)^2/(1+d)^2+...+(1+g1)^10/(1+d)^10]
+(1+g1)^10/(1+d)^10*[(1+g2)/(1+d)+(1+g2)^2/(1+d)^2+...+(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (Dividends Based)=Dividends per Share*{[x+x^2+...+x^10]+x^10*[y+y^2+...+y^10]}
=Dividends per Share*[x*(1-x^10)/(1-x)+x^10*y*(1-y^10)/(1-y)]
=1.1988*11.5406
=13.83

Margin of Safety % (DCF Dividends Based) = (Intrinsic Value: DCF (Dividends Based)-Current Price) /Intrinsic Value: DCF (Dividends Based)
= (13.83 - 43.02) / 13.83
= -211.06 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

What does a Intrinsic Value: DCF (Dividends Based) of A$13.83 mean?
Ramsay Health Care (ASX:RHC) has a Intrinsic Value: DCF (Dividends Based) of A$13.83 as of Jul. 20, 2026. Intrinsic Value: DCF (Dividends Based) is the stock value based on a two-stage discounted dividend model. View historical data on Ramsay Health Care and its competitors. This is 723% above median its historical median of 1.68. Over the past decade, Ramsay Health Care's Intrinsic Value: DCF (Dividends Based) has ranged from 0.85 to 4.81. According to the industry distribution chart, Ramsay Health Care ranks #77 out of 83 companies in the Healthcare Providers & Services industry, placing it in the top 92.8%.
Is Ramsay Health Care's Intrinsic Value: DCF (Dividends Based) too high?
Ramsay Health Care's current Intrinsic Value: DCF (Dividends Based) of A$13.83 is 723% above median its 10-year median of 1.68. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 4.81. Based on the distribution chart, Ramsay Health Care ranks #77 out of 83 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Ramsay Health Care has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ramsay Health Care's Intrinsic Value: DCF (Dividends Based) compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Ramsay Health Care ranks #77 out of 83 companies for Intrinsic Value: DCF (Dividends Based). This places Ramsay Health Care in the lower half of its industry. The industry median Intrinsic Value: DCF (Dividends Based) is 1.18. Historically, Ramsay Health Care's own Intrinsic Value: DCF (Dividends Based) has ranged from 0.85 to 4.81 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (Dividends Based) for a Healthcare Providers & Services company?
The median Intrinsic Value: DCF (Dividends Based) among Healthcare Providers & Services companies is 1.18, based on 83 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (Dividends Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (Dividends Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (Dividends Based) mean?
A high Intrinsic Value: DCF (Dividends Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (Dividends Based) is the stock value based on a two-stage discounted dividend model. View historical data on Ramsay Health Care and its competitors. For the Healthcare Providers & Services industry, the median Intrinsic Value: DCF (Dividends Based) is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramsay Health Care's current Intrinsic Value: DCF (Dividends Based) is A$13.83, which is 723% above median its own 10-year median of 1.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramsay Health Care stock overvalued right now?
Based on GuruFocus' analysis, Ramsay Health Care (ASX:RHC) is currently considered Modestly Undervalued. The stock's GF Value™ is A$50.82, compared to a current price of A$43.02 — trading 15.3% below its estimated fair value. The current Intrinsic Value: DCF (Dividends Based) is A$13.83, which is 723% above median its 10-year median of 1.68. Ramsay Health Care's overall GF Score™ is 86/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (Dividends Based) calculated?
Intrinsic Value: DCF (Dividends Based) is calculated from a company's financial statements. For Ramsay Health Care (ASX:RHC), the current Intrinsic Value: DCF (Dividends Based) is A$13.83 as of Jul. 20, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ramsay Health Care (ASX:RHC) Overvalued in 2026?

Based on GuruFocus' analysis, Ramsay Health Care stock appears to be undervalued. The current stock price of A$43.02 is trading 15.3% below its estimated GF Value™ of A$50.82. GuruFocus considers Ramsay Health Care to be Modestly Undervalued.

Key valuation signals for ASX:RHC:

  • Intrinsic Value: DCF (Dividends Based): A$13.83 (723% above median its 10-year median of 1.68)
  • GF Value™: A$50.82 vs. price of A$43.02 (15.3% below fair value)
  • GF Score™: 86/100 with 9 warning signs

No single metric tells the full story. See the ASX:RHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ramsay Health Care Business Description

Address 126 Phillip Street, Suite 18.03, Level 18, Deutsche Bank Place, Sydney, NSW, AUS, 2000
Ramsay Health Care is one of the largest private healthcare providers in the world, with more than 500 sites across about eight countries. The key markets in which it operates are Australia, France, the UK, and Sweden. It is the largest private hospital group in each of these markets except for the UK, where it is the largest independent supplier to the NHS. Ramsay Santé, which operates the European regions other than the UK, is a 53%-owned subsidiary of Ramsay Health Care. The company typically earns about two-thirds of consolidated earnings in Australia. Ramsay Health Care undertakes both private and publicly funded healthcare.
86GF Score

Get the complete analysis for ASX:RHC

Intrinsic Value: DCF (Dividends Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$43.02
Price
A$50.82
GF Value