Teladoc Health (TDOC): Reassessing Valuation After New $13.6 Million ESOP Shelf Registration Filing

Teladoc Health (TDOC) just filed a new shelf registration to potentially issue about 1.8 million shares, or roughly $13.6 million of common stock, tied to its employee stock ownership plan.

See our latest analysis for Teladoc Health.

The new ESOP related shelf filing lands as Teladoc’s 1 month share price return of 7.08% contrasts with a much weaker year to date share price return and a steep multi year total shareholder return decline, suggesting any positive momentum is still fragile.

If this update has you reassessing digital health, it could be worth scanning other opportunities across healthcare stocks to see which names pair structural growth with stronger long term returns.

With shares down sharply over one and five years, yet trading at a sizable discount to analyst targets, is Teladoc an underappreciated turnaround in digital health, or are markets already pricing in all the growth that lies ahead?

Most Popular Narrative Narrative: 18.8% Undervalued

With the most followed narrative placing Teladoc Health’s fair value above the recent 7.41 dollars close, the gap hinges on future profitability and modest growth.

In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be 2.7 billion dollars, earnings will come to 235.6 million dollars, and it would be trading on a PE ratio of 9.7x, assuming you use a discount rate of 9.7 percent.

Read the complete narrative.

Curious how low single digit revenue growth, a sharp margin swing, and a restrained future earnings multiple still add up to upside potential? The narrative unpacks it.

Result: Fair Value of $9.13 (UNDERVALUED)

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

However, persistent BetterHelp margin pressure and fierce chronic care competition could cap revenue growth and challenge expectations for a smooth, margin driven recovery.

Find out about the key risks to this Teladoc Health narrative.

Build Your Own Teladoc Health Narrative

If you would rather weigh the numbers yourself and challenge the consensus view, you can build a personalized Teladoc narrative in just a few minutes, Do it your way.

A great starting point for your Teladoc Health research is our analysis highlighting 3 key rewards and 1 important warning sign 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.

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