<div id="readability-page-1"><div><ul> <li>If you are wondering whether Pennant Group's current share price really reflects its underlying value, you are not alone. This article is all about putting a clear price tag on the business using a few different valuation lenses.</li> <li>The stock most recently closed at US$33.71, with returns of 4.3% over 7 days, 22.0% over 30 days, 21.1% year to date, 48.0% over 1 year, 116.4% over 3 years and a 31.4% decline over 5 years. This gives a wide range of experiences depending on when you first got interested.</li> <li>Recent news around Pennant Group has mainly focused on its position in the healthcare space and how investors are reassessing companies linked to longer term care and home health themes. This context helps explain why some shareholders are paying close attention to how much they are paying for each dollar of the company's future potential.</li> <li>Pennant Group currently holds a valuation score of 3 out of 6, which means it screens as undervalued on half of the checks we will walk through next. We will compare common valuation methods before finishing with a different way to think about what the stock might really be worth.</li> </ul> <p>Pennant Group delivered 48.0% returns over the last year. See how this stacks up to the rest of the Healthcare industry.</p> <h3>Approach 1: Pennant Group Discounted Cash Flow (DCF) Analysis</h3> <p>A Discounted Cash Flow, or DCF, model takes estimates of the cash a business could generate in the future and discounts those amounts back to today, to arrive at an estimate of what the whole company might be worth now.</p> <p>For Pennant Group, the model uses a 2 Stage Free Cash Flow to Equity approach based on cash flow projections in $. The latest twelve month free cash flow is $27 million, and analysts and model estimates point to free cash flow of $73 million by 2028, with further projections out to 2035 supplied or extrapolated by Simply Wall St.</p> <p>Adding up those discounted cash flows produces an estimated intrinsic value of about $80.56 per share. Compared with the recent share price of $33.71, the DCF output suggests the stock trades at a 58.2% discount to this intrinsic value, which screens as materially undervalued on this model.</p> <p><strong>Result: UNDERVALUED</strong></p> <p>Our Discounted Cash Flow (DCF) analysis suggests Pennant Group is undervalued by 58.2%. Track this in your watchlist or portfolio, or discover 46 more high quality undervalued stocks.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3d574a55-c5a4-451d-aa61-57f300c6a48d/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTAx?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/3d574a55-c5a4-451d-aa61-57f300c6a48d/chart/dcf/query-ZGF0ZT0yMDI2LTAzLTAx"/><figcaption>PNTG Discounted Cash Flow as at Mar 2026</figcaption></figure> <p>Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Pennant Group.</p> <h3>Approach 2: Pennant Group Price vs Earnings</h3> <p>For profitable companies, the P/E ratio is a simple way to link what you pay for each share to the earnings that support it. You can think of it as the market’s shorthand for how confident it is in those earnings. Higher expected growth and lower perceived risk usually justify a higher P/E, while slower growth or higher risk tend to anchor the ratio lower.</p> <p>Pennant Group currently trades on a P/E of 39.51x. That sits above the Healthcare industry average of 23.65x, while peers in its space average a much higher 104.39x. Simply comparing to the industry or a peer set can be misleading, because those companies often have very different growth profiles, margins and risk levels.</p> <p>To address that, Simply Wall St uses a proprietary “Fair Ratio”, which is the P/E you might expect for Pennant Group after adjusting for its earnings growth, profit margin, size, risk profile and industry. For Pennant Group, this Fair Ratio is 24.78x, which is lower than the current 39.51x. On this basis, the stock screens as trading above what the Fair Ratio suggests.</p> <p><strong>Result: OVERVALUED</strong></p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3d574a55-c5a4-451d-aa61-57f300c6a48d/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTAx?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/3d574a55-c5a4-451d-aa61-57f300c6a48d/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAzLTAx"/><figcaption>NasdaqGS:PNTG P/E Ratio as at Mar 2026</figcaption></figure> <p>P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 19 top founder-led companies.</p> <h3>Upgrade Your Decision Making: Choose your Pennant Group Narrative</h3> <p>Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St that comes through Narratives, which let you attach your own story about Pennant Group to the numbers by linking your view on its future revenue, earnings and margins to a forecast and a Fair Value. You can then compare that Fair Value to the current price on the Community page used by millions of investors. Your Narratives automatically refresh when new news or earnings arrive, and you can see, for example, how a more cautious Pennant view with a Fair Value of about US$34 and a more optimistic view with a Fair Value around US$40 both fit within the same US$28 to US$40 range. This can help you decide whether the current price lines up with the version of the story you believe in.</p> <p>Do you think there's more to the story for Pennant Group? Head over to our Community to see what others are saying!</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/3d574a55-c5a4-451d-aa61-57f300c6a48d/chart/quote-price/query-ZGF0ZT0yMDI2LTAzLTAx?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/3d574a55-c5a4-451d-aa61-57f300c6a48d/chart/quote-price/query-ZGF0ZT0yMDI2LTAzLTAx"/><figcaption>NasdaqGS:PNTG 1-Year Stock Price Chart</figcaption></figure> <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><h3><strong>New: </strong>Manage All Your Stock Portfolios in One Place</h3><p>We've created the <strong>ultimate portfolio companion</strong> for stock investors, <strong>and it's free.</strong></p><p>• Connect an unlimited number of Portfolios and see your total in one currency<br/>• Be alerted to new Warning Signs or Risks via email or mobile<br/>• Track the Fair Value of your stocks<br/></p><p>Try a Demo Portfolio for Free</p></div></div></div>

PNTG

<p>Pennant Group's share price closed at $33.71, reflecting a 48% return over the past year. A Discounted Cash Flow (DCF) analysis suggests the stock is undervalued by 58.2%, with an intrinsic value of $80.56 per share. However, its P/E ratio of 39.51x is above the industry average of 23.65x, indicating it may be overvalued based on earnings growth expectations. Investors are reassessing the company's value in the healthcare sector, considering its future potential and market position.</p>

Is Pennant Group (PNTG) Priced Attractive After Strong 1 Year Share Price Rally