Astrana Health (ASTH) has drawn fresh attention after reporting $120.4 million in gross shared savings from its ACOs for 2024, alongside fiscal 2025 revenue of $3.18 billion and adjusted EBITDA of $205.4 million.
See our latest analysis for Astrana Health.
Astrana Health’s recent ACO savings update and executive appointments sit alongside strong momentum in the stock, with an 88.9% year to date share price return and a 1 year total shareholder return of 89.65%, while the 5 year total shareholder return shows a 38.8% decline. This highlights how recent gains follow a weaker longer term experience.
If you are looking for more value based care and health technology ideas, it could be a good time to see what stands out in 40 healthcare AI stocks
Astrana Health now combines a large value based care platform, sizeable ACO savings and a sharp share price rebound. The real test is simpler: at today’s level, does the stock still offer solid value?
Most Popular Narrative: 1% Overvalued
Astrana Health’s most followed narrative pegs fair value at $47.11, slightly below the last close at $47.64, so the focus shifts to what is driving that gap.
Continued transition to full risk, value-based care contracts (now 78% of revenue, up from 60% YoY) is driving recurring, higher-quality revenue streams and improved patient retention, positioning Astrana to benefit from rising demand for coordinated, efficient healthcare as the U.S. population ages, which may support both revenue growth and sustainable margin expansion over time.
Want to see what sits behind that valuation call? The narrative leans on faster earnings growth, firmer margins and a future profit multiple that is anything but conservative.
Result: Fair Value of $47.11 (ABOUT RIGHT)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Astrana Health’s reliance on Medicare and Medicaid reimbursement, along with the execution risk around integrating Prospect Health, could quickly challenge the current fair value narrative.
Find out about the key risks to this Astrana Health narrative.
Another View: Astrana Health Through the SWS DCF Lens
While the most followed Astrana Health narrative points to a fair value of $47.11, the SWS DCF model presents an estimated future cash flow value of $130.08 per share, with the stock trading at $47.64. That gap suggests either a generous DCF or a market that is pricing in far more execution and policy risk. Which side do you think is closer to reality?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Astrana 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 46 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Are there mixed messages in the Astrana Health story so far? If so, it may be useful to review the data yourself, consider both the potential upsides and the key concerns, and decide how the balance of 2 key rewards and 3 important warning signs looks to you.
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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.
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