--- title: "A Look At Pediatrix Medical Group (MD) Valuation After Recent Share Price Strength" type: "News" locale: "en" url: "https://longbridge.com/en/news/283921663.md" description: "Pediatrix Medical Group (MD) has seen a 10% increase in share price over the past month, with annual revenue of $1.9 billion and net income of $165.4 million. Analysts predict a 2.6% annual revenue growth and a decline in profit margins. The fair value is estimated at $21.33, indicating the stock is slightly overvalued at $22.76. Future earnings are expected to reach $171.4 million by 2029. Despite recent challenges, including a 7% revenue decline, the company remains on investors' radar for potential growth opportunities." datetime: "2026-04-24T02:10:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283921663.md) - [en](https://longbridge.com/en/news/283921663.md) - [zh-HK](https://longbridge.com/zh-HK/news/283921663.md) --- # A Look At Pediatrix Medical Group (MD) Valuation After Recent Share Price Strength ## Why Pediatrix Medical Group Is On Investors’ Radar Today Pediatrix Medical Group (MD) has been drawing attention after recent share price moves, with the stock up around 10% over the past month and about 6% over the past 3 months. That price action sits against a backdrop of annual revenue of US$1.9b and net income of US$165.4m, which gives you a sense of the company’s current scale in US newborn and pediatric care services. See our latest analysis for Pediatrix Medical Group. Looking beyond the recent bounce, the 1 year total shareholder return of 82.08% and 3 year total shareholder return of 60.28% point to strong momentum, even though the 5 year total shareholder return decline of 15.42% shows a weaker longer term picture. If this kind of move has you thinking about where else growth stories might emerge, it could be worth scanning a focused list of 34 healthcare AI stocks. With Pediatrix trading at US$22.76 against an analyst price target of US$22.17, but with an estimated intrinsic value gap of about 61%, you have to ask: is there still a buying opportunity here, or is future growth already priced in? ## Most Popular Narrative: 7% Overvalued On the most followed narrative, Pediatrix Medical Group’s fair value sits at $21.33, slightly below the recent $22.76 share price, which suggests a modest premium in the market and puts the focus firmly on what is baked into those cash flow assumptions. > _Pediatrix Medical Group Future Earnings and Revenue Growth > Assumptions > How have these above catalysts been quantified? > • Analysts are assuming Pediatrix Medical Group's revenue will grow by 2.6% annually over the next 3 years. > • Analysts assume that profit margins will shrink from 8.6% today to 8.3% in 3 years time. > • Analysts expect earnings to reach $171.4 million (and earnings per share of $2.07) by about March 2029, up from $165.4 million today. The analysts are largely in agreement about this estimate. > • In order for the above numbers to justify the price target of the analysts, the company would need to trade at a PE ratio of 11.0x on those 2029 earnings, up from 9.7x today. This future PE is lower than the current PE for the US Healthcare industry at 21.2x. > • Analysts expect the number of shares outstanding to decline by 3.73% per year for the next 3 years. > • To value all of this in today's terms, we will use a discount rate of 6.98%, as per the Simply Wall St company report. > Risks > What could happen that would invalidate this narrative?_ Read the complete narrative. Curious how steady revenue assumptions, only slight margin pressure, and an 11x future P/E all interact to produce that fair value number? The full narrative joins those moving parts with detailed cash flow, discount rate and buyback expectations that are not obvious from the headline figures. **Result: Fair Value of $21.33 (OVERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, the recent 7% year on year revenue decline from portfolio restructuring, along with rising salary and benefits costs, could still challenge that fair value story. Find out about the key risks to this Pediatrix Medical Group narrative. ## Another Angle On Value The narrative model points to a fair value of $21.33 and labels Pediatrix as modestly overvalued, but the current 11.2x P/E compares with a fair ratio of 17.4x, the US Healthcare industry at 23.3x, and peers at 24.8x. If the market moves closer to that fair ratio, is sentiment or valuation risk really the bigger story here? See what the numbers say about this price — find out in our valuation breakdown. NYSE:MD P/E Ratio as at Apr 2026 ## Next Steps All this might sound constructive, but your view matters more than any single model. Move quickly, review the details, and weigh up the 3 key rewards ## Looking for more investment ideas? If Pediatrix has your attention, do not stop here; broaden your watchlist with other focused stock ideas that could sharpen your next move. - Target dependable income by scanning companies that show up in the 13 dividend fortresses and see which payouts catch your eye. - Zero in on potential value opportunities by running through the 55 high quality undervalued stocks and spotting businesses that fit your return expectations. - Prioritize resilience by checking the 74 resilient stocks with low risk scores and see which names might help steady your overall portfolio. _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._ ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [MD.US](https://longbridge.com/en/quote/MD.US.md) ## Related News & Research - [Pediatrix Medical beats Q1 revenue and adjusted EBITDA estimates](https://longbridge.com/en/news/285184523.md) - [Wedge Capital Management L L P NC Purchases New Shares in Pediatrix Medical Group, Inc. $MD](https://longbridge.com/en/news/270733014.md) - [TKO Group Stock: Analyst Estimates & Ratings](https://longbridge.com/en/news/286905283.md) - [Walmart Stock: Here’s Why Analysts Are Raising Price Targets Before Q1 Earnings.](https://longbridge.com/en/news/286950969.md) - [What Are Wall Street Analysts' Target Price for Simon Property Group Stock?](https://longbridge.com/en/news/287078098.md)