Privia Health Group Inc. Common Stock (PRVA)

FairStock Score: 36/100 — MIXED

Key Financials

Strengths

• Generates $134 million in annual free cash flow (4.6% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
• Revenue growth of 17.4% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($5) with negative 377% margin of safety—limited downside protection

AI Analysis

Privia Health Group Inc. Common Stock is a small-cap healthcare company valued at $2.9 billion. The business generates $2.1 billion in annual revenue with a 0.4% net margin and $134 million in free cash flow. From a quality standpoint, Privia shows healthy Altman Z-Score of 3.6 and modest 4% ROE. On valuation, the stock is commanding a steep 130.6x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 17.4% and profit growth of 108.0%. Our composite FairStock Score of 36/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Privia's 17% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $134 million in annual free cash flow (4.6% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 131x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer