DaVita (DVA) Could Be 13% Undervalued As Strong Q3 Earnings Lift Sentiment

DaVita earnings set the tone

DaVita (DVA) is back in focus after reporting third quarter revenue of US$3,578.13 million and net income of US$222.93 million, with both figures above the prior year period.

Recent trading suggests investors are reassessing DaVita’s risk and earnings profile, with the share price moving up 6.75% over the past month and 67.10% year to date, while the 3 year total shareholder return of 116.51% points to strong longer term performance.

Look beyond DaVita’s latest quarter by exploring our curated list of healthcare operators with solid fundamentals through list of solid balance sheet and fundamentals (25 results)

DaVita shares have re-rated quickly, yet the stock still trades below both analyst targets and one intrinsic value estimate. Is the recent rally already capturing fair value, or is the gap still meaningful?

Most Popular Narrative: 13% Undervalued

Against DaVita’s last close of $191.35, the analyst consensus Narrative on Simply Wall St marks fair value at $219.86. This points to a sizeable valuation gap while still grounding the view in detailed earnings and cash flow work built on an 8.36% discount rate.

The Integrated Kidney Care business is achieving the highest aggregate savings in its CMS program with improved quality scores and is expected to add roughly US$20 million of adjusted operating income growth in 2026 and around 1 percentage point of ongoing operating income contribution. This can support DaVita’s earnings even if U.S. dialysis reimbursement remains tight.

See why 22 investors see DaVita as 13% undervalued.

Result: Fair Value of $219.86 (UNDERVALUED)

Still, the DaVita narrative depends on reimbursement keeping closer pace with costs, and on the payer mix not eroding revenue per treatment more than management anticipates.

Find out about the key risks to this DaVita narrative.

Next Steps

Mixed signals on DaVita’s value case can make the picture feel murky, so consider reviewing both sides of the story and weighing the 4 key rewards and 1 important warning sign promptly.

Looking for more investment ideas beyond DaVita?

If DaVita has sharpened your focus on quality, use that momentum and widen your search now so you are not relying on a single opportunity.

• Target stability by reviewing companies with robust finances through the list of solid balance sheet and fundamentals (25 results).
• Hunt for potential value gaps by scanning 39 high quality undervalued stocks before other investors close the window.
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