From Tom Gardner: 2024-05-15 16:30:00

Pro Medicus Ltd, a healthcare stock on the ASX 200, has surged over 90% in the past year and more than 480% in five years, hitting a new all-time high. The company boasts impressive profit margins of 66% EBIT and 49% NPAT, with revenue growth driven by new contracts in Europe and North America.

With strong performance and growth potential, Pro Medicus remains a top player on the ASX, offering cost-saving solutions and expanding its geographic reach. Despite high valuations of 154x FY24 earnings and 93x FY26 earnings, investors are split on the stock, with ratings ranging from sell to buy.

Ultimately, while Pro Medicus is a strong contender in the healthcare sector, determining the right valuation for the stock remains a challenge. With a mix of ratings from analysts and high earnings multiples, investing in this ASX 200 company requires careful consideration.



Read more at Tom Gardner: Is it too late to buy?