The share has fallen from its high of Rs 325 to the current levels of about Rs 260 on the news of the Supreme Court judgement, raising questions whether it is an opportunity to buy the share at the current levels of about Rs 260.l
The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates its healthcare delivery services in India, Nepal, Dubai and Sri Lanka with 36 healthcare facilities with approximately 4,000 operational beds.
Current valuations of the company vs historical
Since the company has been moving from profit loss and back to profit again in the past, comparison of current price to earning (PE) ratio with that of historicals does not add much value in making a decision weather to buy the share or not. Currently its price to earning ratio stands at about 48.5
In terms of enterprise value to EBITDA ratio the company is valued at multiple of 20 which is near to its historical multiples thus making it neither undervalued nor overvalued
On the parameter of price to book value it appears to be overvalued at a multiple of 3.2 as compared to its historical multiple of about 1.8
Relative Valuations
It is worthwhile having a look at the relative valuations of its competitors of similar size like Narayana Hrudayalaya Limited
NH has an asset light model and is also valued more attractively at the current market price thus commanding a look from those considering Fortis as an investment at the current juncture
