Stock fact sheet · data as of
DaVita Inc. (DVA): fair value, margin of safety and Wheel Score
Healthcare · Medical - Care Facilities · United States · Value
Is DVA undervalued?
DVA has a margin of safety of 37%: the stock closed at 189.16 on 16 Oct 2026 against a GLS average fair value of 301.75. 4 of the 7 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between Lynch (90.36) and 10 Cap (619.12). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files DVA under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for DVA
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 218.80 | +16% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 285.43 | +51% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 90.36 | -52% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 146.99 | -22% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 619.12 | +227% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 606.17 | +220% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 145.36 | -23% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -192.22 | -202% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 235.67 | +25% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
DaVita Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.3/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are moderate - ROIC 5.2%, ROE -114.7%, ROA 4.3% - with debt at -23.12 times equity and a free-cash-flow yield of 13.3%.
DaVita Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from U S Dialysis And Related Lab Services 100% (quarter Q4 FY2025).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 5.2% |
|---|---|---|---|
| GLS Moat | 3.3 / 10 | ROE | -114.7% |
| Debt / equity | -23.12 | ROA | 4.3% |
| Free-cash-flow yield | 13.3% | Payout ratio | 18% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 82: Prime
With a Wheel Score of 82, DaVita Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 16/20, Moat 5/15, Premium 20/20, Stability 17/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 46% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 72,823 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 625k shares a day on a market cap of $12.1B, with a beta of 0.80 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 37% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.3/10 | |
| Premium | 20 / 20 | implied volatility 46% | |
| Stability | 17 / 20 | 625k shares/day, $12.1B cap, beta 0.80 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
DaVita Inc. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Medical - Care Facilities
The 12 companies below are the closest to DaVita Inc. by market cap within the Medical - Care Facilities industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| FMS Fresenius Medical Care AG & Co. KGaA | 22.13 | 66.81 | +67% | 90Prime | $11.8B |
| EHC Encompass Health Corporation | 127.77 | 114.09 | -12% | 72Good | $12.6B |
| UHS Universal Health Services, Inc. | 185.89 | 441.31 | +58% | 91Prime | $11.0B |
| ENSG The Ensign Group, Inc. | 178.11 | 134.74 | -32% | 59Fair | $10.4B |
| PACS PACS Group, Inc. | 44.98 | 56.37 | +20% | 82Prime | $7.1B |
| CHE Chemed Corporation | 515.44 | 334.59 | -54% | 58Fair | $6.7B |
| THC Tenet Healthcare Corporation | 271.60 | 729.27 | +63% | 88Prime | $21.9B |
| HIMS Hims & Hers Health, Inc. | 29.38 | 55.91 | +47% | 45Weak | $6.6B |
| CON Concentra Group Holdings Parent, Inc. | 39.15 | 28.17 | -39% | 66Good | $5.0B |
| LFST LifeStance Health Group, Inc. | 12.37 | 8.21 | -51% | 63Fair | $4.7B |
| OPCH Option Care Health, Inc. | 31.22 | 36.30 | +14% | 70Good | $4.7B |
| NHC National HealthCare Corporation | 245.53 | 259.14 | +5% | 75Good | $3.8B |
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Start free See the Sunday ScanQuestions about DVA
Is DVA undervalued right now?
By the GLS models, yes: at 189.16 the stock is 37% below the average fair value of 301.75 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of DVA and what does it mean?
DVA scores 82 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for DVA?
301.75 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does DaVita Inc. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does DVA have listed options, and how liquid are they?
Yes. The nightly snapshot found 804 listed contracts with 72,823 open interest across all expiries and implied volatility of 46% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.