Wondering if WELL Health Technologies is a hidden gem or just riding the hype? You’re not alone, especially with so much buzz around digital health stocks these days.
Even though the stock dropped 13.6% in the last week and 19.6% over the past month, its three-year return sits at an impressive 43.8%, showing that longer-term investors have seen strong growth despite recent volatility.
Recently, WELL Health Technologies has drawn attention thanks to its aggressive expansion in telehealth and the acquisition of new digital clinics. This has fueled speculation about its future growth prospects. These strategic moves have played a role in shifting both market sentiment and the company’s share price.
On valuation grounds, WELL Health Technologies scores a perfect 6 out of 6 on our checks for undervaluation. We will break down what goes into that score using classic valuation methods. There is also an even more insightful take on value that investors should not miss.
Find out why WELL Health Technologies’s -8.7% return over the last year is lagging behind its peers.
A Discounted Cash Flow (DCF) model estimates what a business is worth today by projecting its future cash flows and discounting them back to the present using an appropriate rate. This approach helps investors determine whether a stock is undervalued or overpriced based on the company’s expected financial performance.
For WELL Health Technologies, the latest twelve-month Free Cash Flow (FCF) stands at CA$16.9 million. Analysts provide specific FCF estimates for the next five years, after which projections are extrapolated, reaching an estimated CA$148.6 million in 2035. These figures reflect healthy annual growth expectations in the company’s cash flows, driven by expansion in telehealth and digital clinics.
Based on these projections, the DCF model calculates a fair intrinsic value of CA$13.23 per share. Compared to the current market price, the stock shows a notable discount of 66.0 percent, strongly suggesting that WELL Health Technologies is significantly undervalued according to this method.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests WELL Health Technologies is undervalued by 66.0%. Track this in your watchlist or portfolio, or discover 861 more undervalued stocks based on cash flows.
WELL Discounted Cash Flow as at Nov 2025
For companies like WELL Health Technologies that are not yet profitable, the Price-to-Sales (PS) ratio is often the best valuation yardstick. The PS ratio works well in these cases because it focuses on revenue generation instead of earnings, which can fluctuate with growth investments or periods of unprofitability. In fast-growing industries such as digital health, investors often use the PS ratio to account for future potential and the risks of scaling up.
Story Continues
WELL Health Technologies currently trades at a PS ratio of 0.93x. When we compare this to the healthcare industry average of 1.37x and the peer group average of 2.37x, the company appears attractively priced, at a notable discount to its sector. However, simple comparisons can be misleading if they ignore unique factors such as the company’s revenue growth, market size, and any relevant risks.
To provide a more tailored benchmark, Simply Wall St’s proprietary “Fair Ratio” method estimates what an appropriate PS multiple should be for WELL Health Technologies. This method takes into account its growth outlook, profit margins, industry dynamics, market cap, and company-specific risks. This comprehensive approach goes beyond generic peer or industry comparisons by adjusting for the precise realities of the company’s position and potential.
For WELL Health Technologies, the Fair Ratio is calculated at 1.89x. With the stock currently trading at 0.93x sales, this suggests shares are undervalued by this metric, as they are well below what would be deemed fair given the company’s fundamentals.
Result: UNDERVALUED
TSX:WELL PS Ratio as at Nov 2025
PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1407 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. Narratives are your story behind the numbers, providing a simple way to express your personal view of WELL Health Technologies by setting your assumptions for future revenue, profit margins, and what you consider a fair price. By linking the company’s story to a financial forecast and fair value, Narratives connect what you believe could happen with how much the shares are actually worth today.
On Simply Wall St’s Community page, where millions of investors share their views, you can easily create, update, and compare Narratives with others. This tool helps you decide when to buy or sell by tracking the gap between your Fair Value and today’s price, so your decision adjusts as new news or earnings are released. For instance, one Narrative might anticipate rapid digital health adoption and peg WELL at CA$9.00 per share, while another, more cautious view sets fair value at just CA$5.25, showing how your outlook on risks and opportunities can change your investment decisions in real time.
Do you think there’s more to the story for WELL Health Technologies? Head over to our Community to see what others are saying!
TSX:WELL Community Fair Values as at Nov 2025
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.
Companies discussed in this article include WELL.TO.
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