The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2026-06-27), Ramsay Health Care's share price is A$43.10.
Ramsay Health Care's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was A$1.26. Therefore, Ramsay Health Care's PE Ratio for today is 34.15.
Warning Sign:
Ramsay Health Care Ltd stock PE Ratio (=410.48) is close to 10-year high of 424.
During the past 13 years, Ramsay Health Care's highest PE Ratio was 424.00. The lowest was 8.25. And the median was 34.79.
During the past 12 months, Ramsay Health Care's average EPS without NRIGrowth Rate was 0.20% per year.
During the past 3 years, the average EPS without NRIGrowth Rate was 1.60% per year.
During the past 5 years, the average EPS without NRIGrowth Rate was -6.60% per year.
During the past 10 years, the average EPS without NRIGrowth Rate was -7.00% per year.
During the past 13 years, Ramsay Health Care's highest 3-Year average EPS without NRI Growth Rate was 68.00% per year. The lowest was -25.20% per year. And the median was 16.00% per year.
Ramsay Health Care's EPS (Basic) for the
six
months ended in Dec. 2025 was A$0.66.
Its EPS (Basic) for the trailing twelve months (TTM) ended in Dec. 2025 was A$1.26.
Back to Basics: PE Ratio
Ramsay Health Care (ASX:RHC) PE Ratio Explanation
The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.
In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.
If a company loses money, the PE Ratio becomes meaningless.
To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.
Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.
Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.
PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.
Ramsay Health Care PE Ratio Related Terms
Ramsay Health Care PE Ratio Historical Data
* Premium members only.
The historical data trend for Ramsay Health Care's PE Ratio 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.
For the Medical Care Facilities subindustry, Ramsay Health Care's PE Ratio, along with its competitors' market caps and PE Ratio 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 PE Ratio vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Ramsay Health Care's PE Ratio distribution charts can be found below:
* The bar in red indicates where Ramsay Health Care's PE Ratio falls into.
The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.
Ramsay Health Care's Share Price of today is A$43.10.
For company reported semi-annually, Ramsay Health Care's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$1.26.
* 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.
It can also be calculated from the numbers for the whole company:
There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.
In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.
Ramsay Health Care (ASX:RHC) has a PE Ratio of 34.15 as of Jun. 27, 2026. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Ramsay Health Care and its competitors. This is near median its historical median of 34.79. Over the past decade, Ramsay Health Care's PE Ratio has ranged from 8.25 to 424.00.
Is Ramsay Health Care's PE Ratio too high?
Ramsay Health Care's current PE Ratio of 34.15 is near median its 10-year median of 34.79. Over the past 10 years, this metric has ranged from a low of 8.25 to a high of 424.00. Overall, Ramsay Health Care has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ramsay Health Care's PE Ratio compare to HCA and THC?
Ramsay Health Care's PE Ratio of 34.15 can be compared against companies in the Healthcare Providers & Services industry. Historically, Ramsay Health Care's own PE Ratio has ranged from 8.25 to 424.00 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 PE Ratio for a Healthcare Providers & Services company?
A good PE Ratio depends on the Healthcare Providers & Services industry context. However, PE Ratio 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 PE Ratio mean?
A high PE Ratio can signal that a stock is expensive relative to its fundamentals. P/E ratio is the ratio of share price to a company's earnings per share. View historical data on Ramsay Health Care and its competitors. Ramsay Health Care's current PE Ratio is 34.15, which is near median its own 10-year median of 34.79. 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$50.75, compared to a current price of A$43.10 — trading 15.1% below its estimated fair value. The current PE Ratio is 34.15, which is near median its 10-year median of 34.79. Ramsay Health Care's overall GF Score™ is 87/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PE Ratio calculated?
PE Ratio is calculated from a company's financial statements. For Ramsay Health Care (ASX:RHC), the current PE Ratio is 34.15 as of Jun. 27, 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$43.10 is trading 15.1% below its estimated GF Value™ of A$50.75.
GuruFocus considers Ramsay Health Care to be Modestly Undervalued.
Key valuation signals for ASX:RHC:
PE Ratio: 34.15 (near median its 10-year median of 34.79)
GF Value™: A$50.75 vs. price of A$43.10 (15.1% below fair value)
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 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.
87GF Score
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