Sonic Healthcare Limited (SHL.AX)

DCF Valuation · Healthcare · Diagnostics & Research

Valuation as at 2026-08-14 · see also 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
$22.21
Market Cap
$10.98B
Free Cash Flow
$0.60B
Beta
0.59
P/E (TTM)
20.0x
52-Week Range
$18.26–$29.24

Sonic Healthcare Limited'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 as at 2026-08-14

Share price · last 2 years

$22.21 -20% vs 2024-08
ASX 200 $27.68$28.55$26.79$23.32$19.77$22.21 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per year

$1.07 -65% vs FY22
$3.03$1.45$1.07$1.07FY22FY23FY24FY25

Free cash flow Per year

$0.83B -55% vs FY22
$1.85B$0.97B$0.49B$0.83BFY22FY23FY24FY25

Dividend per share Per year

$1.18 +21% vs FY22
$0.98$1.04$1.17$1.18FY22FY23FY24FY25

Value investing scale · Buffett · Dalio · Graham

Partial Fit
12 / 20 combined score

See the full Buffett, Dalio & Graham breakdown for SHL.AX →

Intrinsic value estimate · 5-year forecast

BEAR
$16.34
vs current $22.21
-26.4% ❌ Overvalued
BASE
$32.72
vs current $22.21
+47.3% ✅ Undervalued
BULL
$62.61
vs current $22.21
+181.9% ✅ Undervalued

Assumptions used in this valuation

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

Starting free cash flow
$0.60B
Reported free cash flow (Yahoo)
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
5.80%
Synthetic rating A+, ICR 7.6x
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 growth6.2%12.3%18.5%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)7.93%6.93%5.93%

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 stocks we've valued

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

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the ASX 300 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Sonic Healthcare Limited (SHL.AX) undervalued?

The Base-case DCF estimates intrinsic value at $32.72 vs a price of $22.21 on 2026-08-14 — a +47.3% margin, so the Base case reads undervalued. This is a mechanical output, not advice.