The Pro Medicus Ltd (ASX: PME) share price has been an incredible performer over the last five years, rising by 230%. The Australian stock's return would have been much stronger if the end date of this measure had been July 2025, as it was above $330 at that stage.
As the above chart shows, it's actually down 40% since that July 2025 peak. So, after significant volatility over the past year, is it good value or overvalued?
Let's take a look at what analysts think of the business at its current valuation.
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Expert views on Pro Medicus shares
According to CMC Invest, there have been 10 analyst ratings on the business. Of those ratings, nine were buys, and one was a hold.
Clearly, investors are feeling very positive about the business right now, though it has already regained some of its lost ground after rising more than 40% over the last month.
Experts still think the Pro Medicus share price could rise from here. The average price target of those 10 ratings is $203.15. That suggests it could rise more than 7% in the next year.
The most optimistic price target is $245.13, suggesting it could rise another 30% from where it is at the time of writing.
Why is the Australian stock still attractive?
The business has continued to deliver excellent financials for shareholders, which is the only thing Pro Medicus can truly control.
Its operating profit (EBIT) remains one of the highest on the ASX. This means much of the new revenue it's winning is turning directly into usable EBIT that can help grow the bottom line, pay larger dividends, and/or strengthen the balance sheet.
The company continues to win new and renew existing contracts from valuable clients, giving it tailwinds for shareholder returns.
Additionally, Pro Medicus continues to strive to offer the best service, which is why it recently announced it's exploring a partnership with EchoIQ Ltd (ASX: EIQ) to provide Pro Medicus customers with AI-powered cardiovascular diagnostic technology. Cardiology could be a great growth avenue for Pro Medicus.
The company's earnings per share (EPS) is expected to continue rising at a strong pace. According to Commsec's forecast, the business is projected to grow EPS by around 30% in FY27 and by another 25% in FY28.
Can any other very profitable S&P/ASX 200 Index (ASX: XJO) share grow EPS as much in percentage terms between FY26 and FY28? Time will tell, but I think the Australian stock has a very promising future.
