DaVita (DVA) is back in focus after recent results showed 9.9% year on year revenue growth, earnings ahead of analyst estimates, and higher reimbursement rates that coincided with upbeat 2026 adjusted EPS guidance.

Investors have reacted strongly to DaVita’s recent results, with a 39.6% 90 day share price return and a 76.7% three year total shareholder return suggesting momentum has been building around the earnings story and reimbursement backdrop.

If recent earnings strength has you thinking about where else capital could work hard, it may be worth scanning 35 healthcare AI stocks as another way to find potential opportunities in related areas.

With DaVita trading near its average analyst price target, yet showing a value score of 5 and a large modelled intrinsic discount, you have to ask: is there still an opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 1% Overvalued

With DaVita last closing at $152.42 against a narrative fair value of $151.71, the current setup leans on detailed long term earnings and discount rate work.

Analysts raised their DaVita price targets by up to $30, citing updated assumptions for discount rates and long term earnings multiples, while keeping core fair value drivers broadly unchanged.

Analyst Commentary Read the complete narrative.

Curious how modest revenue growth, slightly higher margins, buybacks, and a lower future P/E still build to this fair value? The critical ingredients are in the earnings path, the shrinking share count, and how the discount rate ties it all together. The full narrative lays out those moving parts in plain numbers.

Result: Fair Value of $151.71 (OVERVALUED)

However, this narrative can still be knocked off course if elevated patient mortality keeps weighing on treatment volumes, or if reimbursement updates continue to lag rising costs.

Another Way To Look At Value

While the narrative framework suggests DaVita is about 1% overvalued at $152.42 versus a fair value of $151.71, the P/E picture tells a different story. At 14.1x earnings, the shares sit well below the US Healthcare average of 23.3x and a fair ratio of 23.1x. This points to a large valuation gap. Is that a safety buffer, or a sign the market is wary of execution and debt risks?

For a closer look at how these earnings multiples stack up against peers and the fair ratio, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of risks and rewards feels finely balanced, take action while the details are fresh and test the numbers yourself with 3 key rewards and 1 important warning sign

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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.