3 models fit DaVita Inc. Common Stock and they disagree: 1 of 3 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Gold82
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionDaVita Inc. Common Stock (DVA)
Fair value (3 models)
$263
ACCE price target
$196
Rating
Undervalued
Horizon
12 months
Fair value published on 19 Oct 2026, 18:04 CEST; previously $237 since 11 Oct 2026, 00:00 CEST.
ACCE price target published on 27 Sept 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 18:04 CEST.
Price used: $184 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
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
30.2% below
+43.2% to fair value
ACCE score
76
out of 100
Analysts
38% buy
8 covering
P/E
15.7x
forward 10.0x
1-year return
+43.4%
Dividend yield
0.00%
DaVita Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
DaVita runs outpatient dialysis clinics for patients with chronic kidney failure, and it also sells the lab and kidney-care services that surround them, so its revenue depends on treatment volume and reimbursement rather than on any single drug or device. Its moat is scale and density: a large clinic footprint in local markets, where dialysis patients are tied to nearby centers for three sessions a week, gives it referral relationships and cost leverage that smaller operators struggle to match. Revenue is growing about 5.2%, operating margin is 16.1%, and return on equity is 88.5%, which reflects a heavily leveraged balance sheet as much as operating quality, so the leverage deserves its own check. At roughly 10.6x forward earnings against 15.4x trailing, the market is pricing in earnings growth well above the current pace, which makes the next few quarters of margin and volume data the thing to verify before anything else. Our score is 76/100 and the stock is in no major index, a combination that may warrant a closer look at the cash flow and debt profile.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
high
Extreme leverage and insider selling
Debt/Equity of 12.42 is dangerously high for a healthcare operator. Insiders sold $51.05M in last 10 disclosures with zero buys, signaling confidence erosion despite score improvement.
moderate
Short interest elevated
13.3% short interest is material for a $11.5B cap. Combined with high leverage, suggests bears see structural risk in the capital structure or business model.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Stock trades at 10.5x forward earnings, well below the 23.6x sector median, suggesting meaningful upside.
Free cash flow yield of 9.1% and consensus fair value 32.1% above current price indicate the market has underpriced the business.
Company generated $1.0B in free cash flow over the last twelve months while growing revenue 5.2% year over year.
Why it could disappoint
Debt to equity of 12.42 is extremely high, leaving little room for error if cash flow or refinancing conditions deteriorate.
Reverse DCF implies only 1.7% annual cash flow growth priced in over the next five years, suggesting limited margin for disappointment.
Net margin of 6.0% and ROIC of 5.4% are thin for a mature business, while ROE of 88.5% is inflated by financial leverage rather than operational strength.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 29, 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 DVA's valuation models land
Price
$183.64
Model fair value
$263
Model range
$210 to $358
Fair value $263
Price $184
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores