<div id="readability-page-1"><div><h2>Afya stock: context for recent performance</h2> <p>Afya (NasdaqGS:AFYA) has been on many investors’ radars after a mixed stretch in the share price, with a roughly 2.3% gain over the past day but declines over the past week and month.</p> <p>See our latest analysis for Afya.</p> <p>Zooming out, Afya’s 1 year total shareholder return decline of 10.1% and 5 year total shareholder return decline of 37.9% suggest recent share price momentum has been fading despite the latest move to $13.97.</p> <p>If Afya’s recent swings have you reassessing your watchlist, this could be a good moment to scan other healthcare stocks that are catching investors’ attention.</p> <p>With Afya trading at $13.97, carrying a value score of 6 and signs of revenue and net income growth, you have to ask: is this pricing still conservative, or is the market already baking in future gains?</p> <h2>Price-to-Earnings of 9.2x: Is it justified?</h2> <p>With Afya last closing at $13.97 and trading on a P/E of 9.2x, the stock screens as inexpensive compared to both peers and the broader Consumer Services industry.</p> <p>The P/E ratio compares the current share price to earnings per share, so a lower P/E can suggest the market is assigning a lower price for each unit of current earnings.</p> <p>Afya is flagged as good value on several fronts, including trading at 53.1% below the Simply Wall St estimate of its fair value and earning a value score of 6. Together these factors point to the market pricing Afya below what its earnings profile and forecast growth of around 14% per year might usually imply.</p> <p>The gap is also clear when you look at peers, with Afya's 9.2x P/E sitting well below the peer average of 40.5x and the US Consumer Services industry average of 16.9x. It is also below an estimated fair P/E of 16.9x that the market could, in time, move closer to if sentiment aligns with its fundamentals.</p> <p>Explore the SWS fair ratio for Afya</p> <p><strong>Result: Price-to-Earnings of 9.2x (UNDERVALUED)</strong></p> <p>However, the longer term total shareholder return declines and reliance on Brazil’s medical education market could limit how quickly sentiment around that low P/E resets.</p> <p>Find out about the key risks to this Afya narrative.</p> <h2>Another view: DCF points to a larger gap</h2> <p>Afya already screens as inexpensive on a 9.2x P/E, yet our DCF model goes further, suggesting the shares are trading at $13.97 versus an estimated future cash flow value of $29.80. That is a wide gap. Is the market overdoing its caution, or seeing risks the model cannot?</p> <p>Look into how the SWS DCF model arrives at its fair value.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/7b116eaf-c65d-4800-9595-403a47a74e12/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/7b116eaf-c65d-4800-9595-403a47a74e12/chart/dcf"/><figcaption>AFYA Discounted Cash Flow as at Jan 2026</figcaption></figure><p>Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Afya for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 883 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.</p> <h2> Build Your Own Afya Narrative</h2> <p>If this framework does not quite fit how you see Afya, you can always pull up the numbers yourself and shape a narrative that reflects your own view, Do it your way.</p> <p>A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Afya.</p> <h2>Looking for more investment ideas?</h2> <p>If Afya has sharpened your thinking, do not stop here. A broader watchlist can help you spot opportunities that suit your style and risk tolerance.</p> <ul> <li>Target potential mispricings by scanning these 883 undervalued stocks based on cash flows that the market may be pricing conservatively based on their cash flows.</li> <li>Spot emerging trends in automation and data by reviewing these 24 AI penny stocks shaping the next wave of technology.</li> <li>Add diversification potential by considering these 19 cryptocurrency and blockchain stocks linked to blockchain, digital assets, and new payment networks.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

AFYA

<p>Afya (NasdaqGS:AFYA) is currently trading at $13.97 with a P/E ratio of 9.2x, indicating it may be undervalued compared to peers and the Consumer Services industry. Despite a recent 2.3% gain, Afya has seen a 10.1% decline in total shareholder return over the past year. A discounted cash flow (DCF) analysis suggests a fair value of $29.80, highlighting a significant gap. Investors are encouraged to consider other healthcare stocks while assessing Afya's potential risks and rewards.</p>

Assessing Afya (NasdaqGS:AFYA) Valuation As Shares Trade On A 9.2x P/E And Discounted DCF Price