WEBULL

A Look At Teladoc Health (TDOC) Valuation As Competition Rises And BetterHelp Growth Stalls

Simply Wall St · 5d ago

Recent commentary around Teladoc Health (TDOC) is centered on rising competition, pressure on its BetterHelp segment, and ongoing net losses. These factors have kept investor sentiment cautious toward the stock.

See our latest analysis for Teladoc Health.

Teladoc Health’s share price has been volatile, with a 1 day share price return of 9.89% and 7 day return of 14.29%. However, its 1 year total shareholder return decline of 19.92% and 5 year total shareholder return decline of 96.52% indicate that longer term momentum has been fading even as short term traders respond to cost focus, BetterHelp headwinds, and upcoming visibility at the J.P. Morgan Healthcare Conference.

If this kind of telehealth reset has you reassessing opportunities, it could be a good moment to look across other healthcare stocks that might fit your watchlist next.

With Teladoc Health still posting net losses on about US$2.53b of revenue and the share price far below its 5 year level, the key question is whether this reset leaves TDOC undervalued or whether the market already reflects its future growth potential.

Most Popular Narrative: 12.3% Undervalued

With Teladoc Health last closing at US$8.00 and the most followed narrative anchoring fair value at US$9.13, the gap comes down to a handful of key operating assumptions.

The company's ongoing international expansion, with double-digit growth in its international integrated care business and a focused rollout of localized services, diversifies revenue streams and accesses underserved markets, which is likely to drive sustainable topline and membership growth.

Read the complete narrative.

Curious what has to happen for that value gap to make sense? The story leans heavily on modest revenue increases, a sharp profit margin reset, and a future earnings multiple that looks conservative next to many healthcare peers.

Result: Fair Value of $9.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that depends on BetterHelp avoiding prolonged revenue pressure and on Teladoc keeping operating expenses in check, or margin and earnings expectations could prove too optimistic.

Find out about the key risks to this Teladoc Health narrative.

Build Your Own Teladoc Health Narrative

If the numbers or assumptions here do not quite fit how you see Teladoc, you can stress test the data yourself and build a fresh view in just a few minutes. Do it your way

A great starting point for your Teladoc Health research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Teladoc has sharpened your focus on where you want your money working next, do not stop here; your next move could be the one that really counts.

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.