CorVel (CRVL) has been drawing attention after a stretch of weaker share returns, including about a 5% decline over the past day and deeper pullbacks over the past month and past 3 months.
See our latest analysis for CorVel.
The recent 1 day share price return of a 4.85% decline sits within a wider losing streak, with the 1 year total shareholder return down 61.79%, suggesting momentum has been fading over both short and longer timeframes.
If CorVel’s pullback has you reassessing your watchlist, it could be a useful moment to see how other healthcare names compare through our healthcare stocks.
With CorVel now trading at a discount to some intrinsic value estimates and a value score of 2, you have to ask: is this prolonged share price slide creating an opportunity, or is the market already pricing in future growth?
CorVel is trading on a P/E of 23.8x, which the data suggests is attractive compared with similar peers but slightly richer than the broader US Healthcare industry, at a last close of $49.08.
The P/E ratio compares the current share price with earnings per share, so it reflects how much investors are paying for each dollar of profit. For a company focused on workers’ compensation and medical cost management, this ratio often captures how the market views the resilience and quality of its earnings, especially when growth data is mixed or incomplete.
Here, CorVel screens as good value versus its direct peer group, where the average P/E sits at 54.9x, which is more than double CorVel’s multiple. Against the wider US Healthcare industry average of 22.5x, however, CorVel trades at a small premium, suggesting the market is assigning slightly higher value to its earnings than the sector overall while still pricing it below closer peers.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 23.8x (ABOUT RIGHT)
However, you also need to factor in risks like the 62% 1 year total return decline, as well as the possibility that worker compensation volumes or pricing could pressure the $941.493m revenue base.
Find out about the key risks to this CorVel narrative.
While the 23.8x P/E suggests CorVel is roughly in line with the broader US Healthcare sector, our DCF model points to something different, with an estimated value of $60.47 per share versus the current $49.08. That indicates CorVel is trading at an 18.8% discount, which raises the question of whether sentiment is too pessimistic here.
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CorVel for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 868 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
If you see the numbers differently or prefer to dig into the details yourself, you can build a complete view in just a few minutes, starting with Do it your way.
A great starting point for your CorVel research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
If you are serious about building a stronger watchlist, do not stop at one stock. Use targeted screeners to spot opportunities before they move without you.
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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