DaVita
DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodia…
DaVita Inc. provides kidney dialysis services for patients suffering from chronic kidney failure in the United States. The company operates kidney dialysis centers and provides related lab services in outpatient dialysis centers. It also offers outpatient, hospital inpatient, and home-based hemodialysis dialysis services; operates clinical laboratories that provide routine laboratory tests for dialysis and other physician-prescribed laboratory tests for ESRD patients; and management and administrative services to outpatient dialysis centers. In addition, the company offers integrated care and disease management services to patients in risk-based and other integrated care arrangements; clinical research programs; physician services; and comprehensive kidney care services. Further, it engages in the transplant software business. The company was formerly known as DaVita HealthCare Partners Inc. and changed its name to DaVita Inc. in September 2016. DaVita Inc. was incorporated in 1994 and is headquartered in Denver, Colorado.Looks undervalued
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Other models: USD 133.25–444.08 (median 242.76). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price below modeled range
Free-cash-flow DCF using Fiscal year 2025 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 4.58% growth, 2.9% terminal growth, and 10.5% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 4.58%, discount rate 10.50%, terminal growth 2.90% (sector defaults). See a worked example.
Blended growth assumption: 4.6% (sector default 6.8%, own revenue history 4.1%, analyst revenue consensus 3.7%).
Analyst consensus expects revenue growth of 3.7% a year; the growth assumption used is 4.6%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 259.91 (+36.7%)
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EPS-based Gordon proxy
— USD 133.25 (-29.9%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 259.91 (+36.7%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 242.76 (+27.7%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 444.08 (+133.6%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 259.24 (+36.4%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 898.87 (+372.9%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 197.46 | 3.7% |
| Base USD 259.91 | 26.9% |
| Bull USD 368.54 | 48.4% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 190.08 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.9%, discount 10.5%).
Compare: the market implies -3.0% a year, this model assumes 4.6%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.5% | 9.5% | 10.5% | 11.5% | 12.5% |
|---|---|---|---|---|---|
| 0.6% | 295.35 | 252.39 | 220.72 | 196.41 | 177.15 |
| 2.6% | 321.85 | 274.50 | 239.61 | 212.83 | 191.63 |
| 4.6% | 350.38 | 298.28 | 259.91 | 230.47 | 207.17 |
| 6.6% | 381.05 | 323.84 | 281.71 | 249.40 | 223.84 |
| 8.6% | 413.99 | 351.27 | 305.09 | 269.69 | 241.70 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 90 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +4.1% a year | 12 / 20 |
| Margins | EBITDA margin 20% | 20 / 20 |
Peers in Health Care
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| DVA (this company) | USD 190.08 | 26.9% | 19.3 | – | – | 90 |
| ZEAL.CO Zealand Pharma A/S | DKK 231.10 | 37.0% | 6.0 | 0.9 | – | 72 |
| CI Cigna | USD 295.59 | 30.1% | 12.2 | 1.8 | 2.1% | 70 |
| BAVA.CO Bavarian Nordic A/S | DKK 238.20 | 13.0% | 11.7 | 1.4 | – | 92 |
| CVS CVS Health | USD 81.72 | 12.0% | 9.5 | 1.3 | 3.2% | 70 |
| INCY Incyte | USD 117.12 | 9.5% | 18.3 | 4.5 | – | 100 |
| AMP.MI Amplifon S.p.A. | EUR 11.17 | 8.7% | 41.1 | – | 2.6% | 72 |
| ZBH Zimmer Biomet | USD 106.85 | 0.5% | 26.6 | 1.6 | 0.9% | 90 |
| GSK.L GSK plc | GBP 18.47 | -3.0% | 17.3 | 4.0 | 3.6% | 92 |
| Peer median | 14.7 | 1.6 | ||||
Annual financial statement
Saved annual report · Fiscal year 2025 · SEC EDGAR annual filings · period ended 31 Dec 2025
| Revenue | USD 13,643,069,000 |
|---|---|
| EBITDA | USD 2,751,867,000 |
| EBIT | USD 2,043,615,000 |
| Net income | USD 746,803,000 |
| Free cash flow | USD 1,310,636,000 |
| Capital expenditures | USD -575,864,000 |
| Debt | USD |
| Cash | USD 676,438,000 |
| Working capital | USD 916,369,000 |
| Shares outstanding | 75,885,000 |