Tenet Healthcare Corporation (THC) Financial Ratios
31 years of historical data (1995–2025) · Healthcare · Medical - Care Facilities
EV/EBITDA
↑
5.91
+3% vs avg
5yr avg: 5.72
30Y Low1.8·High19.2
P/FCF
↓
5.98
↓-40% vs avg
5yr avg: 9.93
30Y Low1.5·High113.1
P/B Ratio
↓
1.75
+7% vs avg
5yr avg: 1.63
30Y Low0.4·High44.5
ROE
↓
16.1%
↑-26% vs avg
5yr avg: 21.7%
30Y Low-125%·High91%
Debt/EBITDA
↓
3.06
↓-18% vs avg
5yr avg: 3.71
30Y Low1.6·High13.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
THC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Tenet Healthcare Corporation trades at 11.1x earnings, 6% above its 5-year average of 10.5x, sitting at the 28th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.1x, the stock trades at a discount of 50%. On a free-cash-flow basis, the stock trades at 6.0x P/FCF, 40% below the 5-year average of 9.9x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $15.1B | $18.1B | $12.4B | $7.9B | $5.4B | $8.9B | $4.2B | $3.9B | $1.8B | $1.5B | $1.5B |
| Enterprise Value | $25.4B | $28.3B | $23.7B | $21.7B | $19.6B | $22.2B | $17.5B | $18.4B | $16.2B | $15.9B | $16.0B |
| P/E Ratio → | 11.14 | 12.83 | 3.86 | 13.23 | 12.87 | 9.70 | 10.65 | — | 16.02 | — | — |
| P/S Ratio | 0.71 | 0.85 | 0.60 | 0.39 | 0.28 | 0.46 | 0.24 | 0.21 | 0.10 | 0.08 | 0.08 |
| P/B Ratio | 1.75 | 2.01 | 1.45 | 1.44 | 1.17 | 2.08 | 1.47 | 1.98 | 0.85 | 0.63 | 0.42 |
| P/FCF | 5.98 | 7.13 | 11.07 | 4.88 | 16.80 | 9.75 | 1.48 | 6.98 | 4.12 | 3.09 | — |
| P/OCF | 4.27 | 5.10 | 6.04 | 3.34 | 4.98 | 5.66 | 1.25 | 3.19 | 1.70 | 1.27 | 2.64 |
P/E links to full P/E history page with 30-year chart
THC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Tenet Healthcare Corporation's enterprise value stands at 5.9x EBITDA, roughly in line with its 5-year average of 5.7x. The Healthcare sector median is 14.2x, placing the stock at a 58% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.33 | 1.15 | 1.06 | 1.02 | 1.14 | 0.99 | 1.00 | 0.88 | 0.83 | 0.82 |
| EV / EBITDA | 5.91 | 6.59 | 3.49 | 6.42 | 6.18 | 5.95 | 6.15 | 7.72 | 6.64 | 7.99 | 7.64 |
| EV / EBIT | 7.39 | 7.83 | 3.90 | 8.62 | 8.78 | 7.88 | 10.46 | 14.12 | 9.92 | 17.10 | 13.05 |
| EV / FCF | — | 11.20 | 21.20 | 13.37 | 61.10 | 24.34 | 6.11 | 32.72 | 37.49 | 32.15 | — |
THC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Tenet Healthcare Corporation earns an operating margin of 16.1%. Operating margins have expanded from 12.2% to 16.1% over the past 3 years, signaling improving operational efficiency. ROE of 16.1% indicates solid capital efficiency. ROIC of 13.2% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 82.3% | 82.3% | 39.7% | 38.0% | 36.8% | 37.3% | 35.3% | 36.3% | 36.4% | 35.4% | 36.4% |
| Operating Margin | 16.1% | 16.1% | 28.8% | 12.2% | 12.2% | 14.7% | 11.3% | 8.3% | 8.9% | 5.8% | 6.4% |
| Net Profit Margin | 6.6% | 6.6% | 15.5% | 3.0% | 2.1% | 4.7% | 2.3% | -1.2% | 0.6% | -3.7% | -1.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.1% | 16.1% | 45.5% | 12.1% | 9.3% | 25.6% | 16.4% | -10.5% | 4.6% | -23.9% | -5.7% |
| ROA | 4.8% | 4.8% | 11.2% | 2.2% | 1.5% | 3.3% | 1.6% | -0.9% | 0.5% | -2.9% | -0.8% |
| ROIC | 13.2% | 13.2% | 22.8% | 9.9% | 9.6% | 12.8% | 9.1% | 7.0% | 7.4% | 4.8% | 5.3% |
| ROCE | 13.8% | 13.8% | 24.7% | 10.9% | 10.3% | 12.8% | 9.6% | 8.2% | 8.7% | 5.6% | 6.2% |
THC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Tenet Healthcare Corporation carries a Debt/EBITDA ratio of 3.1x, which is moderately leveraged (roughly in line with the sector average of 3.2x). Net debt stands at $10.3B ($13.2B total debt minus $2.9B cash). Interest coverage of 4.4x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.47 | 1.47 | 1.68 | 2.72 | 3.27 | 3.68 | 5.44 | 7.42 | 7.04 | 6.21 | 4.39 |
| Debt / EBITDA | 3.06 | 3.06 | 2.11 | 4.44 | 4.75 | 4.20 | 5.52 | 6.18 | 6.08 | 7.53 | 7.27 |
| Net Debt / Equity | — | 1.15 | 1.32 | 2.50 | 3.09 | 3.12 | 4.59 | 7.28 | 6.84 | 5.96 | 4.18 |
| Net Debt / EBITDA | 2.39 | 2.39 | 1.67 | 4.08 | 4.48 | 3.56 | 4.66 | 6.07 | 5.91 | 7.22 | 6.93 |
| Debt / FCF | — | 4.07 | 10.13 | 8.49 | 44.30 | 14.60 | 4.63 | 25.74 | 33.37 | 29.06 | — |
| Interest Coverage | 4.41 | 4.41 | 7.35 | 2.79 | 2.51 | 3.05 | 1.67 | 1.32 | 1.63 | 0.90 | 1.25 |
THC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.76x means Tenet Healthcare Corporation can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.51x to 1.76x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.76 | 1.76 | 1.78 | 1.51 | 1.34 | 1.38 | 1.47 | 1.21 | 1.20 | 1.29 | 1.30 |
| Quick Ratio | 1.68 | 1.68 | 1.70 | 1.42 | 1.25 | 1.31 | 1.40 | 1.13 | 1.12 | 1.22 | 1.22 |
| Cash Ratio | 0.65 | 0.65 | 0.70 | 0.26 | 0.19 | 0.46 | 0.50 | 0.06 | 0.11 | 0.14 | 0.18 |
| Asset Turnover | — | 0.72 | 0.71 | 0.73 | 0.71 | 0.71 | 0.65 | 0.79 | 0.82 | 0.82 | 0.79 |
| Inventory Turnover | 10.86 | 10.86 | 36.00 | 31.00 | 29.94 | 31.82 | 31.00 | 37.95 | 38.21 | 42.85 | 38.28 |
| Days Sales Outstanding | — | 43.93 | 53.94 | 60.47 | 65.90 | 61.93 | 69.34 | 64.47 | 61.65 | 57.57 | 63.84 |
THC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Tenet Healthcare Corporation returns 9.5% to shareholders annually primarily through share buybacks. The earnings yield of 9.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.0% | 7.8% | 25.9% | 7.6% | 7.8% | 10.3% | 9.4% | — | 6.2% | — | — |
| FCF Yield | 16.7% | 14.0% | 9.0% | 20.5% | 6.0% | 10.3% | 67.6% | 14.3% | 24.3% | 32.3% | — |
| Buyback Yield | 9.5% | 8.0% | 5.4% | 2.5% | 4.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 9.5% | 8.0% | 5.4% | 2.5% | 4.6% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $91M | $98M | $105M | $111M | $109M | $106M | $103M | $104M | $101M | $99M |
Peer Comparison
Compare THC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 THCYou | $15B | 11.1 | 5.9 | 6.0 | 82.3% | 16.1% | 16.1% | 13.2% | 3.1 |
 HCA | $84B | 13.2 | 8.6 | 10.9 | 41.5% | 15.8% | — | 19.9% | 3.2 |
 CYH | $426M | 0.8 | — | 2.0 | 8.7% | -79.4% | — | -70.1% | — |
 UHS | $9B | 6.1 | 5.4 | 10.4 | 90.4% | 11.5% | 21.0% | 12.3% | 2.1 |
 ENSG | $9B | 26.3 | 23.5 | 24.2 | 13.7% | 8.6% | 16.9% | 7.0% | 7.7 |
 SEM | $2B | 14.0 | 12.1 | 5.4 | 11.5% | 6.1% | 7.3% | 4.8% | 7.8 |
 ACHC | $2B | -2.0 | 8.3 | — | 17.6% | 11.7% | -41.4% | 5.9% | 4.6 |
 USPH | $964M | 44.6 | 13.2 | 15.8 | 20.1% | 10.3% | 2.0% | 5.6% | 4.1 |
 NHC | $3B | 26.3 | 16.6 | 21.2 | 67.8% | 9.5% | 11.7% | 9.9% | 0.5 |
 SGRY | $2B | -23.9 | 10.1 | 9.7 | 23.1% | 11.8% | -2.2% | 4.1% | 7.1 |
 UNH | $364B | 30.3 | 17.9 | 22.6 | 18.5% | 4.2% | 11.8% | 9.2% | 3.4 |
| Healthcare Median | — | 22.1 | 14.2 | 18.5 | 63.9% | -4.3% | -32.6% | -11.6% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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THC — Frequently Asked Questions
Quick answers to the most common questions about buying THC stock.
What is Tenet Healthcare Corporation's P/E ratio?
Tenet Healthcare Corporation's current P/E ratio is 11.1x. The historical average is 18.7x. This places it at the 28th percentile of its historical range.
What is Tenet Healthcare Corporation's EV/EBITDA?
Tenet Healthcare Corporation's current EV/EBITDA is 5.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.7x.
What is Tenet Healthcare Corporation's ROE?
Tenet Healthcare Corporation's return on equity (ROE) is 16.1%. The historical average is -0.9%.
Is THC stock overvalued?
Based on historical data, Tenet Healthcare Corporation is trading at a P/E of 11.1x. This is at the 28th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Tenet Healthcare Corporation's profit margins?
Tenet Healthcare Corporation has 82.3% gross margin and 16.1% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Tenet Healthcare Corporation have?
Tenet Healthcare Corporation's Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.