Privia Health Group (PRVA) recently saw its share price move after UnitedHealth Group warned of lower revenue expectations and flat Medicare Advantage payment rates, a sector wide shock that weighed on healthcare provider stocks.

At a share price of US$23.22, Privia Health Group has seen pressure in recent months, with a 90 day share price return showing a 4.44% decline and a 3 year total shareholder return showing a 10.55% loss. This suggests recent momentum has softened, even though the 1 year total shareholder return of 1.62% is still slightly positive.

If sector headlines have you reassessing healthcare exposure, this can be a good moment to scan beyond Privia Health Group and look at healthcare stocks as potential ideas.

With PRVA trading at US$23.22, a value score of 4, an indicated intrinsic discount of about 42% and a discount of roughly 35% to analyst targets, you have to ask: is this a real opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 25.7% Undervalued

With Privia Health Group last closing at $23.22 against a narrative fair value of $31.25, the most followed view sees a meaningful gap worth understanding.

The industry wide movement towards value based care, with associated shared savings and care management fees, is enabling Privia to grow its value based attributed lives at a double digit rate and to expand margins as risk sharing agreements mature, positively impacting earnings and long term EBITDA growth.

Want to see what is sitting behind that valuation gap? The narrative focuses on compounding revenue, thicker margins, and a future earnings profile that assumes a richer profit mix over time. Curious which forecasts carry the most weight in that fair value math and how they tie back to today’s tiny net margin?

Result: Fair Value of $31.25 (UNDERVALUED)

However, that story can break if healthcare labor costs stay high, or if insurer and hospital consolidation squeezes the terms Privia can achieve with its physician network.

Build Your Own Privia Health Group Narrative

If that fair value story does not fit how you see Privia, you can pull up the same data, stress test the assumptions, and build your own view in just a few minutes, starting with Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Privia Health Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.