How does the care network earn revenue?
Tenet Healthcare Corp operates healthcare facilities and provides care services in the US. Its business is built around delivering clinical services through a hospital footprint alongside other care settings. The company’s revenue is tied to patient care activity and the related services delivered across its network. At roughly USD 20.1 billion in market value, it sits in the large-cap end of publicly traded healthcare providers.
Do margins and cash stay consistent?
FundamentalsFor 2025 (reported in USD), revenue was USD 21.3 billion, with EBIT of USD 3.5 billion and net income of USD 2.4 billion. Revenue grew 3.1% versus the prior year, while trailing margins show an 82.47% gross margin alongside a 17.64% operating margin and a 7.79% net margin.
Cash on hand was USD 2.9 billion against total debt of USD 158.0 million, and depreciation and amortization ran at USD 863.0 million. Cash flow proxy was about USD 3.9 billion.
Does the price trail fair value?
DCF / MultiplesAt USD 233.20, the stock sits below the DCF-derived fair value range implied by outcomes from a weaker scenario to a stronger one. The pricing also comes alongside a trailing P/E of 11.80 and EV/EBITDA of 6.39.
Operating bar still matters
TakeawayThe valuation leans on durable, repeatable earnings power. That case looks easier if margins hold near recent levels. Cash generation needs to stay consistent as well. A slip in profitability could matter more than revenue growth. The stock price leaves room, but the operating bar is not low.