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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
The industry rank for Life Healthcare Group Holdings's Net-Net Working Capital or its related term are showing as below:
JSE:LHC's Price-to-Net-Net-Working-Capital is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 7.75 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Life Healthcare Group Holdings (JSE:LHC) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Life Healthcare Group Holdings Net-Net Working Capital Related Terms
Life Healthcare Group Holdings Net-Net Working Capital Historical Data
* 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.
Life Healthcare Group Holdings Net-Net Working Capital Chart
JSE:LHC vs HCA, THC, DVA: Net-Net Working Capital Comparison
For the Medical Care Facilities subindustry, Life Healthcare Group Holdings's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Life Healthcare Group Holdings Price-to-Net-Net-Working-Capital vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Life Healthcare Group Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Life Healthcare Group Holdings's Price-to-Net-Net-Working-Capital falls into.
* 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of R-5.47 mean?
Life Healthcare Group Holdings (JSE:LHC) has a Net-Net Working Capital of R-5.47 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Life Healthcare Group Holdings According to the industry distribution chart, Life Healthcare Group Holdings ranks #999999 out of 192 companies in the Healthcare Providers & Services industry.
Is Life Healthcare Group Holdings' Net-Net Working Capital too high?
Life Healthcare Group Holdings' current Net-Net Working Capital is R-5.47. Based on the distribution chart, Life Healthcare Group Holdings ranks #999999 out of 192 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Life Healthcare Group Holdings has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Life Healthcare Group Holdings' Net-Net Working Capital compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Life Healthcare Group Holdings ranks #999999 out of 192 companies for Net-Net Working Capital. This places Life Healthcare Group Holdings in the lower half of its industry. The industry median Net-Net Working Capital is 7.75. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Healthcare Providers & Services company?
The median Net-Net Working Capital among Healthcare Providers & Services companies is 7.75, based on 192 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital 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 Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Life Healthcare Group Holdings For the Healthcare Providers & Services industry, the median Net-Net Working Capital is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life Healthcare Group Holdings's current Net-Net Working Capital is R-5.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Healthcare Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Life Healthcare Group Holdings (JSE:LHC) is currently considered Modestly Undervalued. The stock's GF Value™ is R15.67, compared to a current price of R11.56 — trading 26.2% below its estimated fair value. The current Net-Net Working Capital is R-5.47. Life Healthcare Group Holdings' overall GF Score™ is 56/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Life Healthcare Group Holdings (JSE:LHC), the current Net-Net Working Capital is R-5.47 as of Mar. 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 Life Healthcare Group Holdings (JSE:LHC) Overvalued in 2026?
Based on GuruFocus' analysis, Life Healthcare Group Holdings stock appears to be undervalued.
The current stock price of R11.56 is trading 26.2% below its estimated GF Value™ of R15.67.
GuruFocus considers Life Healthcare Group Holdings to be Modestly Undervalued.
Key valuation signals for JSE:LHC:
Net-Net Working Capital: R-5.47
GF Value™: R15.67 vs. price of R11.56 (26.2% below fair value)
No single metric tells the full story. See the JSE:LHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Life Healthcare Group Holdings Ltd is a private healthcare provider in southern Africa, prominently serving the medically insured market. The company is in the business of providing hospital and complementary services (which include mental healthcare, acute rehabilitation, renal dialysis, oncology and diagnostics) and healthcare services. It operates via three segments: Hospitals segment (acute hospitals), the Complementary Services segment (mental health, acute rehabilitation, renal dialysis, oncology and diagnostics) and the Healthcare Services segment (Life Nkanyisa and Life Health Solutions). The majority of revenue is derived from the hospitals segment. Geographically, the company generates the maximum revenue from Southern Africa.
56GF Score
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