Sonic Healthcare Limited (SHL.AX)

DCF Valuation · Healthcare · Diagnostics & Research

Valuation as at 2026-08-04 · refreshed with the ASX 300 Most Undervalued screen

About Sonic Healthcare Limited

Sonic Healthcare Limited offers medical diagnostic services, and administrative services and facilities to medical practitioners in Australia, the United States, Germany, and internationally. The company provides laboratory medicine/pathology testing services, such as biochemistry, cytopathology, genetics, haematology, histopathology, immunoserology, microbiology, molecular pathology, prenatal testing, toxicology, and ancillary functions; and radiology services, including magnetic resonance imaging, computed tomography (CT), ultrasound, X-ray, mammography, nuclear medicine, PET CT, interventional procedures, and bone mineral densitometry. It also offers primary care medical services comprising general practice clinics, occupational health services, skin cancer clinics, general practice IT solutions, and community-based healthcare services, as well as clinical trials services.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Sonic Healthcare Limited SHL.AX

Healthcare · Diagnostics & Research

Price
$22.09
Market Cap
$10.92B
Free Cash Flow
$0.60B
Beta
0.59
P/E (TTM)
19.9x
52-Week Range
$18.26–$29.24

SHL.AX's price & financial trends

Annual reporting periods — this market does not have reliable quarterly data on Yahoo (either it isn’t required, or coverage is incomplete), so annual is the most granular consistent series across free cash flow and dividends.

Data refreshed 2026-08-04

Share price · last 2 years

$22.09 -20% vs first period
ASX 200 $27.68$28.55$26.79$23.32$19.77$22.09 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted)

$1.07 -65% vs first period
$3.03$1.45$1.07$1.07FY22FY23FY24FY25

Free cash flow

$0.83B -55% vs first period
$1.85B$0.97B$0.49B$0.83BFY22FY23FY24FY25

Dividend per share

$1.18 +21% vs first period
$0.98$1.04$1.17$1.18FY22FY23FY24FY25

Intrinsic value estimate · 5-year forecast

BEAR
$16.93
vs current $22.09
-23.4% ❌ Overvalued
BASE
$34.00
vs current $22.09
+53.9% ✅ Undervalued
BULL
$65.52
vs current $22.09
+196.6% ✅ Undervalued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Risk-free rate
4.80% ● LIVE
Live 10-yr govt bond
Beta
0.59
Floored for non-US stocks
Equity risk premium
6.00%
Market-specific seed
Cost of debt
5.00%
Estimated (no debt/interest data)
Tax rate
25.00%
Estimated default
Capital structure
E 65% / D 35%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth6.1%12.3%18.4%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)7.72%6.72%5.72%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.80% + 0.59 × 6.00% = 8.33% · WACC = weighted by 65%/35% capital structure

These numbers come from running Sonic Healthcare Limited's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or SHL.AX's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with SHL.AX →

More ASX 300 Most Undervalued stocks

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Refreshed on the same cycle as the ASX 300 Most Undervalued screen. Change any assumption yourself in the full interactive tool.

Frequently asked questions

Is SHL.AX undervalued?

The Base-case DCF estimates intrinsic value at $34.00 vs a current price of $22.09 — a +53.9% margin, so the Base case reads undervalued. This is a mechanical output, not advice.