Only one of our models could value this stock with confidence, so use it as a guide.
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Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionPACS Group Inc. Common Stock (PACS)
Fair value (2 models)
Not available
ACCE price target
$45.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Price used: $47.64 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and P/E 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
ACCE score
69
out of 100
Analysts
100% buy
6 covering
P/E
27.9x
forward 17.4x
1-year return
+273.9%
Dividend yield
0.00%
PACS Group Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
PACS Group runs skilled nursing facilities in the US, the bulk of its revenue coming from Medicare and Medicaid reimbursement for post-acute care, with a smaller stream from its therapy and ancillary services. Its edge is operational rather than structural: the company buys underperforming facilities and fixes staffing, census and billing, which makes it a consolidator in a fragmented industry with ageing demand behind it. Revenue growth of 9.1% is modest, but the forward P/E of 15.5 against a trailing 27.9 implies earnings are expected to recover sharply, which is the bet to test. A 7.7% operating margin and 17.3% gross margin leave little room for reimbursement cuts or wage inflation, so the thesis rests on margin expansion from facility turnarounds. ROE of 27.9% is strong but flattered by leverage in a capital-heavy business, so the balance sheet deserves a close read before anything else.