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Pro Medicus Ltd (PME) Fair Value & Analysis

Healthcare · AU · Market cap A$20.7B (≈ $14.9B) · ISIN AU000000PME8

What is Pro Medicus Ltd really worth?

PM Pro Medicus Ltd PME · AU
PriceA$173.95
Fair ValueA$23.74
Upside−86.4%
Quality81/100

Structural break: The valuation model sees a lasting decline in earnings power for this stock, the confidence band is broken. Treat the target with caution.

A strong business, but trading 633% above our fair value of A$23.74.

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Strengths

Healthy Growth (revenue 5y +30.2 %/yr)
Highly profitable · 97.6% net margin
Low debt · generates free cash flow
Wide moat 92/100

Risks

!Mixed vs. peers (7/14)
!Evidence only low, so the estimate is less certain
!Weak on dividend: 7 out of 100

For context

·0.36% dividend yield
Evidence: Low Range A$18.20 – A$41.92

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 22 days ago

Share price +5.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 81/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (A$41.92). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (A$18.20 to A$41.92) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

A$329.23 A$37.31 Fair Value A$23.74 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range A$37.31 – A$329.23 · fair‑value band A$18.20 – A$41.92 · the A$173.95 price screens above the A$23.74 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Pro Medicus Ltd (PME) currently trades at A$173.95, while our model-based Fair Value estimate is A$23.74, implying the stock looks roughly 632.6% overvalued today. The Quality Score stands at 81/100 (high quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of A$32.37 per share, and 0 of the 24 models we run sit above the A$173.95 price. Bear case: the Multiples group reads lowest at A$11.07, and 24 of the 24 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Pro Medicus Ltd generated revenue of A$241M at a net margin of 97.6%. Revenue grew 28.4% year over year. It earns a return on equity of 76.8%. The balance sheet holds a net cash position of A$172M. Fundamentals as of Aug 13, 2026

Our scenario range runs from A$18.20 (bear case) to A$41.92 (bull case); at A$173.95, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic. The share trades about 48% below its 52-week high and 62% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −64% fair-value upside, at −86%, PME screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly A$1.63 per share, which is 6.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (A$1.65 to A$52.30). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF A$17.82 A$28.02 A$58.61 76
Growth DCF A$16.98 A$30.97 A$58.36 75
EPV A$11.65 A$13.32 A$14.77 74
All 24 models by family
DCF Models
FCF DCF A$17.82 A$28.02 A$58.61 76
Owner Earnings A$18.96 A$41.02 A$87.32 71
5Y Revenue Exit A$9.41 A$14.07 A$23.07 71
5Y EBITDA Exit A$18.01 A$32.37 A$59.08 72
5Y P/E Exit A$19.18 A$39.19 A$65.39 68
10Y Revenue Exit A$11.65 A$19.14 A$25.87 67
10Y EBITDA Exit A$17.95 A$35.98 A$69.69 64
10Y P/E Exit A$18.78 A$38.27 A$72.72 60
Earnings-Based
Graham-Dodd A$7.50 A$52.30 A$73.40 63
Lynch FV A$16.51 A$23.58 A$30.65 61
PEG = 1.0 A$16.51 A$23.58 A$30.65 57
EPV A$11.65 A$13.32 A$14.77 74
Multiples
P/E Multiple A$18.20 A$24.26 A$30.33 63
P/S Multiple A$5.35 A$7.13 A$8.92 58
P/B Multiple A$8.30 A$11.07 A$13.84 55
EV/EBIT A$20.91 A$27.32 A$33.73 66
EV/EBITDA A$18.24 A$23.76 A$29.28 67
EV/Revenue A$5.95 A$7.78 A$9.62 54
Asset-Based
NCAV (Graham) A$1.23 A$1.65 A$2.46 54
Growth DCF
Growth DCF A$16.98 A$30.97 A$58.36 75
Rev-Margin DCF A$9.41 A$15.32 A$24.14 71
Economic Profit
Residual Income A$9.22 A$14.19 A$215.92 64
ROIC Compounder A$12.43 A$15.18 A$18.30 72
Growth Earnings
Growth-Adj P/E A$22.57 A$32.25 A$41.92 67

Widest divergence: DCF Models (A$32.37) versus Asset-Based (A$1.65). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 77.7
P/S ratio 42.0 P/E × margin
EPS (TTM) A$2.24 price ÷ EPS = P/E 77.7
Dividend yield 0.4% payout 27.7%
Net margin 54.1% FY2025
Return on equity 76.8% TTM
More key figures
Profitability
Return on assets (EBIT) 41.0% avg 5y
Operating margin 72.7% TTM
Growth
Revenue (TTM) A$241M TTM
Revenue growth (YoY) +28.4% 3y avg +31.6%
EPS growth (YoY) +231%
Balance sheet & cash flow
Free cash flow A$104M FY2025
Net cash A$172M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 81/100

Of which business quality 81 · Market factors (momentum, volatility) 43

Profitability 88
Margins and returns on capital today
Quality Growth 79
Are margins and returns improving?
Cashflow 82
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 31
Disciplined investing over empire-building
Low Volatility 51
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Pro Medicus Limited, a healthcare informatics company, engages in the development and supply of healthcare imaging software, and radiology information (RIS) system software and services to hospitals, imaging centers, and health care groups in Australia, North America, and Europe.

Full company description

Pro Medicus Limited, a healthcare informatics company, engages in the development and supply of healthcare imaging software, and radiology information (RIS) system software and services to hospitals, imaging centers, and health care groups in Australia, North America, and Europe. The company offers Visage RIS Visage 7 Enterprise Imaging Platform, a healthcare imaging software that provides radiologists, physicians, and clinicians with access and visualization capability for viewing 2-D, 3-D, and 4-D medical images; and picture archive and communication system (PACS)/digital imaging software. It also provides Visage RIS, a proprietary medical software for practice management, training, installation, professional services, and after-sale support and service products; and Promedicus.net, an e-health platform for secure email and integration products. In addition, the company offers Visage Ease, a mobile application that provides users access to medical imaging results; and Visage Ease Pro, a mobile application that provides users the ability to interpret various diagnostic imaging studies stored on a Visage 7 server. Pro Medicus Limited was incorporated in 1983 and is headquartered in Richmond, Australia.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Pro Medicus Ltd reported revenue of A$213M in FY2025 versus A$67.9M in FY2021, a compound +33.1%/yr. Reported net income was A$115M in FY2025, compounding +39.0%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
A$213M
Latest YoY
+31.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+31.6%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+30.2%
Avg. revenue growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+38.3% (37.9 + 0.4)
Revenue +33.1%/yr
FY21 A$67.9M
FY22 A$93.5M
FY23 A$125M
FY24 A$161M
FY25 A$213M
Net income +39.0%/yr
FY21 A$30.9M
FY22 A$44.4M
FY23 A$60.6M
FY24 A$82.8M
FY25 A$115M
Character of growth · EPS growth decomposed (2014-2025) +41.5 % p.a.
Revenue per share +26.4 %

of which total revenue +26.7 % · buybacks/dilution −0.3 %

EBIT margin +11.9 %
Tax rate +0.9 %
Residual (interest, one-offs) −0.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

PME screens 633% overvalued. Compare with Veeva Systems Inc →

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Cite: Fair Value Calculator (2026). "Pro Medicus Ltd Fair Value". https://www.fairvalue-calculator.com/stock/PME

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Health Information Services · 128 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 81 · Top 25%
Fair Value upside −86% · Bottom 25%
Return on equity (TTM) 77% · Top 25%
Return on assets 27% · Top 25%
Net margin (TTM) 98% · Top 25%
Operating margin (TTM) 73% · Top 25%
Revenue growth 28% · Top 25%
Dividend yield (TTM) 0.4% · Bottom 25%

Valuation Multiples vs Health Information Services median · lower = cheaper

P/E (TTM) 77.7× · Pricier than 75% of peers
P/S (TTM) 62.21× · Pricier than 75% of peers
P/FCF 144.0× · Pricier than 75% of peers
EV/EBITDA 82.7× · Pricier than 75% of peers
PEG 2.67× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 33
PAST100 · sector 5
HEALTH100 · sector 98
DIVIDEND7 · sector 44

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Health Information Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Veeva Systems Inc VEEV $282.13 $91.49 −68%
BrightSpring Health Services, Inc BTSG $59.68 $21.31 −64%
HealthEquity, Inc HQY $104.27 $56.63 −46%
Hinge Health, Inc HNGE $86.32 $24.03 −72%
10x Genomics, Inc TXG $55.63 $17.18 −69%
Waystar Holding WAY $25.76 $12.86 −50%
XtalPi Holdings 2228 HK$8.19 HK$1.04 −87%
Doximity, Inc DOCS $24.74 $25.91 +5%
Privia Health Group PRVA $21.07 $5.26 −75%
IKS IKS ₹1,785 ₹830.74 −53%

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Frequently asked questions

Is Pro Medicus Ltd (PME) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of A$23.74 versus a price of A$173.95, about −86% upside (overvalued).
What is the fair value of PME?
Our model-based fair value for Pro Medicus Ltd is A$23.74 (as of Aug 13, 2026), built from audited fundamentals. The current price: A$173.95.
What is the quality score of PME?
Pro Medicus Ltd has a Quality Score of 81/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Pro Medicus Ltd (PME)?
Pro Medicus Ltd reported trailing-twelve-month revenue of about A$241M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of PME?
The net profit margin of Pro Medicus Ltd is about 97.6%, meaning it keeps roughly 97.6% of revenue as net income. Based on the latest reported figures.
Does Pro Medicus Ltd pay a dividend?
Pro Medicus Ltd currently shows a dividend yield of about 0.36% relative to its recent price (as of Aug 13, 2026).
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