4 models fit Chemed Corp and they partly agree: 2 of 4 land within 15% of the average.
Two or more of our models back this value.
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Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionChemed Corp (CHE)
Fair value (4 models)
$389
ACCE price target
$520
Rating
Overvalued
Horizon
12 months
Fair value published on 19 Oct 2026, 19:04 CEST; previously $399 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 19:04 CEST.
Price used: $513 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
31.7% above
-24.1% to fair value
ACCE score
76
out of 100
Analysts
40% buy
5 covering
P/E
25.8x
forward 18.6x
1-year return
+17.8%
Dividend yield
0.54%
Chemed Corp in four questions
Plain answers, details below
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Overview
ACCE thesis
Chemed operates two businesses under one roof: VITAS, the largest U.S. hospice provider by patient days, and Roto-Rooter, a plumbing, drain and water-restoration franchise network. The hospice side is the structural story, since Medicare reimbursement and an aging population give it a long runway, and the company's scale in a fragmented, certification-heavy market is hard to replicate. The near-term driver is continued census growth at VITAS alongside steady demand for Roto-Rooter's residential service calls, which together have pushed revenue growth to 8.8%. The stock trades at 25.8 times trailing earnings but 18.2 times forward, so the market is pricing in earnings recovery rather than paying for the current year. With a 27.1% return on equity and a 13.3% operating margin, the business is already converting growth into profit, which is why the name merits a closer look on the valuation and reimbursement-risk questions.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Valuation stretched on trailing basis
Trailing P/E of 25.8 and EV/EBITDA of 15.4 sit high, and the price trades 31.7% above the model fair value of $389.39, so the upside depends on earnings growth holding.
moderate
Revenue growth slowing
Revenue grew 8.8% year over year against a 5-year CAGR of 4.0%, and short interest sits at 5.4%, so the recent pickup is not yet a settled trend.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Return on equity of 27.1% and return on invested capital of 19.2% show the business earns strong returns on the money it uses.
Free cash flow of $325M over the last twelve months, alongside a 5.2% cut in diluted share count, returns cash to owners.
Latest earnings beat expectations, with earnings per share of 5.52 against 5.12 expected, a surprise of +7.8%.
Why it could disappoint
The stock trades 31.7% above the model fair value of $389.39, so the price already assumes more than consensus expects.
Revenue grew 8.8% last year, but the five-year average is only 4.0% a year, so recent growth may not last.
Trailing P/E of 25.8x sits above the sector median forward P/E of 24.2x, leaving little room for error if growth slows.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 27, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where CHE's valuation models land
Price
$512.98
Model fair value
$389
Model range
$176 to $615
Fair value $389
Price $513
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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