A Look At DaVita (DVA) Valuation After Completing Two Major Share Buyback Programs

Buyback completions put DaVita’s capital return in focus

DaVita (DVA) has just wrapped up two sizeable share repurchase authorizations, a move that is drawing fresh attention to how the kidney care provider is using its balance sheet to return cash to shareholders.

See our latest analysis for DaVita.

At a share price of $150.91, DaVita’s recent buyback completions sit alongside a 30 day share price return of 39.58% and a three year total shareholder return of 83.45%. This suggests that momentum has been building as management steps up investor engagement, including appearances at recent healthcare conferences.

If this capital return story has you thinking about where else cash flow and resilience matter, it could be worth scanning 28 healthcare AI stocks as another way to find potential opportunities across the sector.

With DaVita trading near its US$151 price target and carrying a mid range value score, along with an implied intrinsic discount of about 60%, investors may wonder whether there is still a buying opportunity or if the market is already pricing in future growth.

Most Popular Narrative: 50% Undervalued

With DaVita’s fair value estimate at about $151.71 and the last close at $150.91, the most followed narrative still sees a meaningful valuation gap hinging on modest growth, steady margins, and a richer future P/E.

The company's disciplined cost management and improved labor productivity have led to lower patient care costs per treatment, and with higher employee retention and training efficiencies expected to continue, this trend provides ongoing tailwinds for net margins.

Read the complete narrative. Read the complete narrative.

Want to see what is really driving that fair value call? The story leans heavily on steady revenue growth, small margin gains, and a future earnings multiple that assumes investors stay comfortable with DaVita’s cash generation. The full narrative explains how these moving parts combine into that $151.71 figure.

Result: Fair Value of $151.71 (UNDERVALUED)

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

However, you still need to watch for pressure on margins if reimbursement lags cost inflation, and for persistently high patient mortality that keeps treatment volumes under strain.

Find out about the key risks to this DaVita narrative.

Next Steps

Given the mix of optimism and concern in this story, it makes sense to look at the data yourself and decide where you stand. You can frame that view by weighing 3 key rewards and 1 important warning sign.

Looking for more investment ideas?

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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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