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DaVita Inc. — Intrinsic Value & Fair Price

DVA
NYSEHealthcareMedical - Care FacilitiesCIK 0000927066davita.comAbout DVA
Last close · Oct 16, 2026187.31−1.85 (−0.98%)
Market cap$12.0B
Model value · DCF · Perpetuity growth · 5y
528.85
DaVita closed at $187.31 — undervalued by 65% vs model.
236.82the model's range1,392.24

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
91.40 – 757.42
Wall St. target
220.00 15% below
Below model, 1y
20 of 20 days

Price and model value

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How it is valued

Valued asMature & Stable
Low/slowing growth (~6% recent)Moderate margins (5% net margin)Highly cyclical earningsHigh leverage (D/E 5.0x)Strong FCF yield (11.0%)
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
19.0×
EV / EBITDA
8.2×
FCF yield
8.1%
Dividend yield, TTM
0.00%
Beta
0.80
Cost of capital (WACC)
6.56%
Full financials

Analyst actions

third-party, quoted
08-07TD Cowen · “Buy” from “Hold”upgrade
08-07Raymond James · target220.00
08-07Oppenheimer · target220.00
08-07Truist Financial · target215.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label

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About DaVita

DaVita Inc. specializes in delivering essential kidney dialysis treatments and comprehensive renal care to individuals grappling with chronic kidney failure. The company primarily operates an extensive network of outpatient dialysis centers, supplementing this with services provided in hospital inpatient settings and within patients' homes. Beyond direct patient treatment, DaVita manages its own diagnostic laboratories, performing routine tests vital for dialysis patients, alongside other physician-ordered laboratory analyses specifically for those with end-stage renal disease (ESRD). The firm also offers administrative and management support to various other outpatient dialysis facilities. Its broad spectrum of offerings extends to chronic disease management programs, supporting a substantial patient cohort; by year-end 2021, this included 16,000 patients enrolled in risk-based integrated care models and an additional 7,000 in other integrated care arrangements. Further specialized services encompass vascular access interventions, clinical research initiatives, direct physician support, and a complete suite of holistic kidney care solutions. As of December 31, 2021, DaVita's footprint across the United States comprised 2,815 outpatient dialysis centers, collectively serving approximately 203,100 patients. Globally, the company operated 339 outpatient dialysis centers spread across ten countries outside the U.S., attending to roughly 39,900 patients. Moreover, it furnished acute inpatient dialysis services and related laboratory work in around 850 U.S. hospitals. Founded in 1994, DaVita Inc. maintains its headquarters in Denver, Colorado. The company rebranded to its current name in September 2016, having previously been known as DaVita HealthCare Partners Inc.

CEO
Javier J. Rodriguez
Headquarters
Denver, CO
Employees
78,000
IPO
1995-10-31
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.