Pro Medicus (ASX:PME) Shares Could Be 11.3% Undervalued After Index Exit And US Wins

Simply Wall St.

Jun 22

Pro Medicus (ASX:PME) drew attention after gaining 3.1% as traders reacted to its upcoming removal from the S&P/ASX 50 index. Heavy volumes were linked to index fund adjustments and recent US contract...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://www.itiger.com/news/2645299810"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2645299810\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2645299810?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/9551730-choice1-main-header/1585186828574","is_english":true,"pubTime":"2026-06-22 16:23","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2645299810","market":"us","top_or_hot":-1,"title":"Pro Medicus (ASX:PME) Shares Could Be 11.3% Undervalued After Index Exit And US Wins","media":"Simply Wall St.","content":"<div>\n<p>Pro Medicus (ASX:PME) drew attention after gaining 3.1% as traders reacted to its upcoming removal from the S&P/ASX 50 index. Heavy volumes were linked to index fund adjustments and recent US contract...</p>\n\n<a href=\"https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/pro-medicus-asxpme-shares-could-be-113-undervalued-after-ind\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Pro Medicus (ASX:PME) Shares Could Be 11.3% Undervalued After Index Exit And US Wins</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPro Medicus (ASX:PME) Shares Could Be 11.3% Undervalued After Index Exit And US Wins\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-06-22 16:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/pro-medicus-asxpme-shares-could-be-113-undervalued-after-ind><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Pro Medicus (ASX:PME) drew attention after gaining 3.1% as traders reacted to its upcoming removal from the S&P/ASX 50 index. Heavy volumes were linked to index fund adjustments and recent US contract...</p>\n\n<a href=\"https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/pro-medicus-asxpme-shares-could-be-113-undervalued-after-ind\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7094","symbol_name":"医疗保健技术","start_time":0,"source_url":"https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/pro-medicus-asxpme-shares-could-be-113-undervalued-after-ind","article_id":"2645299810","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551730-choice1-main-header/1585186828574"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/healthcare/asx-pme/pro-medicus-shares/news/pro-medicus-asxpme-shares-could-be-113-undervalued-after-ind","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2645299810","pubTimestamp":1782116637,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Pro Medicus (ASX:PME) drew attention after gaining 3.1% as traders reacted to its upcoming removal from the S&P/ASX 50 index. Heavy volumes were linked to index fund adjustments and recent US contract wins.\nSee our latest analysis for Pro Medicus.\nThe recent spike in activity sits against a mixed longer record for Pro Medicus. The 30 day share price return of 36.49% and 90 day return of 46.11% contrast with a year to date share price decline of 21.56% and a 1 year total shareholder return...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7094":"医疗保健技术","PME.AU":"PRO MEDICUS LTD"},"translate_title":"指数退出和美国获胜后，Pro Medicus(ASX：PME)股价可能被低估11.3%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PME.AU":1.5},"content_text":"Pro Medicus (ASX:PME) drew attention after gaining 3.1% as traders reacted to its upcoming removal from the S&P/ASX 50 index. Heavy volumes were linked to index fund adjustments and recent US contract wins. See our latest analysis for Pro Medicus. The recent spike in activity sits against a mixed longer record for Pro Medicus. The 30 day share price return of 36.49% and 90 day return of 46.11% contrast with a year to date share price decline of 21.56% and a 1 year total shareholder return decline of 35.62%. However, the 3 year and 5 year total shareholder returns of 169.53% and 211.98% indicate that longer term momentum has been strong. If this shift in sentiment has you looking beyond Pro Medicus, it could be a good moment to see what else is moving through the healthcare AI space via our 10 healthcare AI stocks So with Pro Medicus trading close to its A$180.44 analyst price target and recent returns swinging between sharp gains and meaningful declines, is the current share price a fresh opportunity, or is the market already pricing in future growth? AdvertisementMost Popular Narrative: 11.3% Undervalued According to the most followed narrative on Pro Medicus, the fair value sits around A$196.78 per share against a last close of A$174.64, which frames the recent volatility in a very different light.  At $120, the stock offers an asymmetric setup: you are not buying a distressed company , you are buying a best-in-class franchise that has temporarily disappointed quarterly expectations in a business where revenue is inherently lumpy. The contract backlog, the renewal rate, the margin profile, and the expanding addressable market have not changed. The price has.  Read the complete narrative. Want to see what sits behind that confidence in Pro Medicus? The narrative leans heavily on sustained revenue growth, high margins and a rich earnings multiple that assume a very specific path for contracts and profitability. Result: Fair Value of A$196.78 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Pro Medicus narrative could be knocked off course if contract timing shifts again or if hospitals slow imaging software upgrades due to budget pressure. Find out about the key risks to this Pro Medicus narrative. Another View: Pro Medicus Looks Expensive On Earnings While the leading Pro Medicus narrative points to an 11.3% discount to fair value at A$196.78 per share, the current 76.9x P/E tells a different story. That multiple is far above the Global Healthcare Services average of 26.4x, the peer average of 29x, and even the fair ratio of 28.4x. This suggests meaningful valuation risk if sentiment cools. If you are weighing that gap between price and earnings, it can help to see how the numbers stack up in more detail through the See what the numbers say about this price — find out in our valuation breakdown. ASX:PME P/E Ratio as at Jun 2026Next Steps Given the mixed sentiment around Pro Medicus, it makes sense to check the underlying data yourself and move quickly to form an informed view. To see how current concerns stack up against potential upsides, take a closer look at the 2 key rewards and 2 important warning signs. Looking for more investment ideas beyond Pro Medicus? If Pro Medicus has sharpened your interest, do not stop here. Widen your research now so you are not relying on a single stock story.  Target potential value opportunities by scanning for companies that look attractively priced relative to their fundamentals with the 8 high quality undervalued stocks. Strengthen your income stream by reviewing stocks that offer resilient payouts using the 7 dividend fortresses. Focus on staying power by checking companies that pair robust finances with quality fundamentals through the solid balance sheet and fundamentals stocks screener (19 results).   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        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\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}