Ardent Health (ARDT) Valuation Check After Accounting Revisions Lawsuits And Guidance Cut

Ardent Health (ARDT) is under pressure after disclosing a US$43 million revenue revision tied to accounts receivable collectability, a US$54 million rise in professional liability reserves, and a cut to 2025 EBITDA guidance. See our latest analysis for Ardent Health. The accounting revisions and lawsuits have weighed heavily on sentiment, with the latest share price at US$8.87 and a 90 day share price return showing a 37.23% decline. The 1 year total shareholder return of a 43.86% loss points to fading momentum despite a modest recent rebound. If these accounting issues have you rethinking hospital operators, it might be a good time to scan other US-listed healthcare stocks and see how their risk profiles compare. With the stock near US$8.87 after a sharp 1 year total shareholder return loss of 43.86%, you have to ask yourself: is Ardent Health now trading below its underlying potential, or is the market already pricing in its future growth? Most Popular Narrative: 36.5% Undervalued Compared to the last close at US$8.87, the most followed narrative sees Ardent Health’s fair value meaningfully higher, using an 8.36% discount rate to frame that gap. Company investments in expanding the ambulatory and urgent care footprint, with ongoing projects and recent acquisitions, enable access to higher-margin outpatient services and enlarge Ardent's patient base, driving a sustained increase in net margins and diversified recurring revenues. Read the complete narrative. Want to understand why a hospital operator earns a higher valuation than its current price suggests? Revenue growth assumptions, margin shifts, and future earnings multiples sit at the heart of this narrative. Curious which of those variables does the heavy lifting in the fair value calculation, and how they fit together over the next few years? Result: Fair Value of $13.96 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to weigh risks such as ongoing payer denials and pressure on net margins, either of which could undercut the higher valuation narrative. Find out about the key risks to this Ardent Health narrative. Another View: Fair Value Based On Earnings Ratios The popular narrative leans on future cash flows and a fair value of US$13.96, but current earnings ratios tell a different story. At a P/E of 6.2x versus a Healthcare industry average of 22.9x and a peer average of 20.9x, the gap is hard to ignore. Simply Wall St’s fair ratio points to 17x as a level the market could move toward over time. That kind of difference can signal mispricing, or it can reflect real concern about execution, margins, or balance sheet risk. Which explanation makes more sense to you at US$8.87? See what the numbers say about this price — find out in our valuation breakdown. NYSE:ARDT P/E Ratio as at Jan 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Ardent Health 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 882 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. Build Your Own Ardent Health Narrative If you see the data differently, or prefer to test your own assumptions, you can build a custom view of Ardent Health in just a few minutes, starting with Do it your way A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Ardent Health. Ready to scan fresh investment ideas? If Ardent Health has sharpened your focus on risk and reward, do not stop here. Put that mindset to work by stress testing other opportunities with a few targeted stock screens. Spot potential value setups by reviewing these 882 undervalued stocks based on cash flows where prices look low relative to underlying cash flows and business quality. Tap into future tech themes by checking out these 28 AI penny stocks that link artificial intelligence to real revenue and developed business models. Lock in income focused ideas through these 12 dividend stocks with yields > 3% that pair meaningful yields with underlying business fundamentals. 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.