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 overvalued
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 above modeled range
Showing the FCFF (steady state) you selected on the company card, using 4.58% growth, 2.9% terminal growth and 10.5% discount. The range varies these assumptions slightly; it is illustrative, not investment advice. Low confidence: the modelled value is far from the market price, which usually means the model does not capture this company well (for example expected growth well above its history).
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%).
5-year outlook: relative outlook of about 3.5% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 3.7% a year; the growth assumption used is 4.6%.
Adjust assumptions
Show the recommended model instead
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 91.21 (-52.0%)
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EPS-based Gordon proxy
— USD 190.18 (+0.1%)
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 91.21 (-52.0%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 71.60 (-62.3%)
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 317.13 (+66.8%)
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 90.45 (-52.4%)
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 857.20 (+351.0%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 13.83 | -1274.3% |
| Base USD 71.60 | -165.5% |
| Bull USD 170.63 | -11.4% |
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.
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: 70 / 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 +5.1% a year | 20 / 20 |
| Balance sheet | net debt 4.6x EBITDA | 0 / 20 |
| Margins | EBITDA margin 20% | 10 / 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 | -108.4% | 13.5 | – | – | 70 |
| CNC Centene Corporation | USD 72.02 | 43.3% | 24.4 | 1.6 | – | 72 |
| 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 |
| 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 | ||||
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 16:48
| Revenue | USD 14,167,545,000 |
|---|---|
| EBITDA | USD 2,799,947,000 |
| EBIT | USD 2,102,419,000 |
| Net income | USD 920,075,000 |
| Free cash flow | USD 1,293,703,000 |
| Capital expenditures | USD 576,753,000 |
| Debt | USD 13,392,426,000 |
| Cash | USD 566,302,000 |
| Working capital | USD 1,188,056,000 |
| Shares outstanding | 65,504,000 |