We value Auna based on a discounted cash flow to equity model (FCFE), employing a cost of equity (Ke) of 13.7% and nominal growth (g) of 4.5%, yielding a 12-month US$9.0/share target price.

This stock is High Risk based upon our quantitative model but assigning a High Risk rating is not supported given the stock’s limited trading activity considering its recent IPO in March 2024. Thus, a High Risk rating has not been applied.

Key risks and concerns that could prevent the shares from reaching our target price are: i) business complexity; ii) high leverage; iii) execution risk; and iv) detrimental changes in regulation.