Companies · DVA · Healthcare Support Services
What does DaVita's price assume?
The margin the price assumes
Revenue grows as its record suggests; the operating margin is solved at today's price.
At $183.50 on November 11, 2026, with growth of 3.4% a year, the price assumes an operating margin of 13.2% by year 5.
The price assumes
13.2%
Operating margin by year 5, solved at the price
Its 10-year median
17.0%
Fiscal 2016–2025, adjusted for R&D and leases
Its industry
3.0%
Healthcare Support Services, Damodaran Online, January 2026
The price assumes a margin below the company's own median, and above its industry's.
The numbers behind the chart
| Fiscal year | Adjusted operating margin |
|---|---|
| 2016 | 19.0% |
| 2017 | 16.7% |
| 2018 | 18.6% |
| 2019 | 15.7% |
| 2020 | 16.0% |
| 2021 | 18.0% |
| 2022 | 14.3% |
| 2023 | 15.7% |
| 2024 | 18.8% |
| 2025 | 17.4% |
- Revenue growth, years 1 to 5
- 3.4% a yearFrom its own revenue growth over the last five years: its filings under its current registration cover fewer than eleven years.SEC filings, revenue to fiscal 2025
- Margin path
- From today's margin to 13.2% by year 5Solved at the price. After that, the margin holds.
The growth the price assumes
The operating margin moves to its own median; revenue growth is solved at today's price.
At $183.50 on November 11, 2026, with an operating margin moving to its 10-year median of 17.0% by year 5, the price assumes revenue shrinking 0.7% a year for 5 years, slowing to the riskfree rate by year 10.
The price assumes
−0.7%
Revenue growth a year, years 1 to 5, solved at the price
Its 5-year growth
3.4%
Revenue, a year on average, from its SEC filings
Its industry
13.1%
Healthcare Support Services, five years, Damodaran Online, January 2026
The price assumes revenue growth below the company's own record and below its industry's.
The numbers behind the chart
| Fiscal year | Revenue growth |
|---|---|
| 2016 | – |
| 2017 | 1.6% |
| 2018 | 4.9% |
| 2019 | −0.1% |
| 2020 | 1.4% |
| 2021 | 0.6% |
| 2022 | −0.1% |
| 2023 | 4.6% |
| 2024 | 5.6% |
| 2025 | 6.5% |
- Operating margin
- From today's margin to 17.0% by year 5Its own 10-year median, held. After that, the margin holds.SEC filings, fiscal 2016-2025, the median operating margin adjusted for R&D and leases
- Revenue growth, years 1 to 5
- −0.7% a yearSolved at the price. From year 6, it slows each year to the riskfree rate by year 10.
The assumptions both views share
These are neutral settings, the same for every company. Each view holds them and solves for one driver at today's price.
- Reinvestment
- $11.75 of revenue for each $1 investedThe industry's sales-to-capital ratio: how much new capital growth needs.Damodaran Online, January 2026 industry data, Healthcare Support Services
- Cost of capital
- 6.97%The return investors need for the risk: the industry's beta, the market's risk premium, and debt rated A3/A- from its median margin, with a stated 5-year debt maturity. Built by the engine from the parts listed under Sources, each with its date.
- After year 10
- Growth at the riskfree rate, foreverNew investment earns its cost of capital and no more, so growth after year 10 adds no value, and the cost of capital moves to a mature company's.
Worth knowing
- Its filings report discontinued operations, so part of the record may be a business it no longer runs.
- Its filings under its current registration cover fewer than eleven years, so growth uses the five-year record alone.
This is a mechanical starting point with neutral assumptions, not a valuation. The story decides.
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Join the waitlistSources
- Price: Qualuation's records, close of November 11, 2026.
- 10-K for the period ended December 31, 2025, filed February 11, 2026 (SEC EDGAR, accession 0000927066-26-000012).
- 10-Q for the period ended September 30, 2026, filed October 29, 2026 (SEC EDGAR, accession 0000927066-26-000134).
- Margin record: SEC filings, fiscal 2016-2025, operating margin adjusted for R&D and leases.
- Industry margin: Damodaran Online, January 2026 industry data, Healthcare Support Services, adjusted for R&D and leases.
- Revenue growth record: SEC filings, revenue, fiscal 2020-2025, the average yearly growth.
- Industry growth: Damodaran Online, January 2026 industry data, Healthcare Support Services, revenue growth over five years.
- Sales to capital: Damodaran Online, January 2026 industry data, Healthcare Support Services.
- US 10-year Treasury yield (FRED), October 29, 2026.
- Less the US default spread (Damodaran Online, July 2026).
- Industry beta, Healthcare Support Services (Damodaran Online, January 2026).
- Equity risk premium (Damodaran Online, October 2026).
- Debt rated A3/A- at its median margin (rating table, Damodaran Online, January 2026).
- The margin the price assumes: solved by the engine at the price on November 12, 2026, with the assumptions above.
- The growth the price assumes: solved by the engine at the price on November 12, 2026, with the margin at its median and the assumptions above.