Ramsay Health Care Ltd

RHC: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$87.00	Kppmwh	Kshczrqny

Ramsay Healthcare: Shares Undervalued With Underlying Earnings Recovering Largely as We Expected

Shane Ponraj

Aug 5, 2024

We maintain our AUD 68 fair value estimate for narrow-moat Ramsay Healthcare. Fiscal 2024 underlying net profit after tax grew roughly 18% to approximately AUD 297 million, broadly in line with our prior expectations. This was driven by improved pricing, recovering volumes, and labour efficiencies. We keep our long-term estimates broadly unchanged, but decrease our forecast fiscal 2024 reported NPAT by 14% to AUD 267 million, largely due to nonrecurring items. This sits within management’s guidance range of AUD 265 million-AUD 270 million.

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