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    HCA Healthcare (HCA): Exploring Valuation Following Recent Analyst Upgrades and Improved Growth Outlook

    Simply Wall St·09/27/2025 18:56:51
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    It’s not every week that HCA Healthcare (HCA) gets a wave of confidence from Wall Street, but that’s what we’ve seen lately. Multiple analysts have upgraded their earnings forecasts, pointing to stronger year-over-year growth for the hospital operator. This renewed optimism is shining a spotlight on HCA again. If you’re trying to decide what to do with the stock, you’re not alone. Zooming out, HCA has enjoyed its share of tailwinds in recent months. Shares are up over 40% year-to-date, which is hard to ignore, especially after a year in which the stock posted a more modest gain. Recent quarters have featured solid revenue growth and improved patient outcomes, though not every result has cleared the highest bar. Even so, the positive momentum around earnings outlooks is hard to miss. So the question is, with all this good news already out there, does HCA still offer room for further upside, or is the market already pricing in most of that future growth?

    Most Popular Narrative: 3.8% Overvalued

    The most widely followed analyst narrative currently sees HCA Healthcare as modestly overvalued, suggesting the market price sits a bit above the calculated fair value.

    Strategic capital allocation, advanced technology investments, and strengthened managed care positioning are expected to drive long-term value and operational efficiency. Regulatory uncertainties and increased costs present risks to HCA's revenue stability and net margins, with concerns about declining surgical volumes and Medicaid changes.

    Want to know the assumptions powering this valuation call? The core of this narrative focuses on future earnings growth and efficiency upgrades, but also a significant shift in how investors may value the company in the years ahead. This outlook includes potential increases in revenue along with changes in long-term profit multiples. Interested to see which future numbers tip the balance? Keep reading for the full valuation playbook behind the price target.

    Result: Fair Value of $403.81 (OVERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, persistent regulatory changes or rising labor costs could still disrupt HCA’s growth outlook and challenge the current optimistic narrative.

    Find out about the key risks to this HCA Healthcare narrative.

    Another View

    Taking a step back, our DCF model offers a strikingly different perspective and points to HCA Healthcare being undervalued. This challenges the market narrative that the company may already be priced for perfection. Which approach gets you thinking?

    Look into how the SWS DCF model arrives at its fair value.

    HCA Discounted Cash Flow as at Sep 2025
    HCA Discounted Cash Flow as at Sep 2025

    Stay updated when valuation signals shift by adding HCA Healthcare to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

    Build Your Own HCA Healthcare Narrative

    If you have a different angle or want to dive deeper into the numbers yourself, it’s easy to craft your own interpretation in just a few minutes. Do it your way

    A great starting point for your HCA Healthcare research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.