Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Health Care Technology industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Why Focus on Undervalued Health Care Technology Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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3 Undervalued Health Care Technology Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Health Care Technology industry for Friday, July 25, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Health Care Technology industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Definitive Healthcare Corp. | DH | 1.86 | na | 6.4 | 4.0% | 1.36 | 9.8 | A |
| TruBridge, Inc. | TBRG | 0.96 | na | 7.0 | (1.0%) | 2.00 | 8.7 | B |
| Teladoc Health, Inc. | TDOC | 0.55 | na | 13.7 | (3.8%) | 1.01 | 4.9 | B |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
Definitive Healthcare Corp.’s Value Grade
Value Grade:
| Metric | Score | DH | Industry Median |
| Price/Sales | 48 | 1.86 | 2.26 |
| Price/Earnings | na | na | 61.8 |
| EV/EBITDA | 16 | 6.4 | 17.8 |
| Shareholder Yield | 20 | 4.0% | (4.0%) |
| Price/Book Value | 39 | 1.36 | 2.02 |
| Price/Free Cash Flow | 23 | 9.8 | 21.5 |
Definitive Healthcare Corp., together with its subsidiaries, provides software as a service (SaaS) healthcare commercial intelligence platform in the United States and internationally. Its SaaS platform provides information on healthcare providers and their activities to help its customers from product development to go-to-market planning, and sales and marketing execution. The company’s platform consists of various functional areas, such as sales, marketing, clinical research and product development, strategy, talent acquisition, and physician network management. It serves biopharmaceutical and medical device companies, healthcare information technology companies, and healthcare providers; and other diversified companies comprising staffing and commercial real estate firms, financial institutions, and other organizations in the healthcare ecosystem. Definitive Healthcare Corp. was founded in 2011 and is headquartered in Framingham, Massachusetts.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Definitive Healthcare Corp. has a Value Score of 84, which is considered to be undervalued.
When you look at Definitive Healthcare Corp.’s price-to-sales ratio at 1.86 compared to the industry median at 2.26, this company has a lower price relative to revenue compared to its peers. This could make Definitive Healthcare Corp.’s stock more attractive for value investors.
Now, let’s assess Definitive Healthcare Corp.’s EV/EBITDA ratio, also known as enterprise multiple. At 6.4, when compared to the industry median of 17.8, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Definitive Healthcare Corp.’s shareholder yield is higher than its industry median ratio of (4.00%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Definitive Healthcare Corp.’s price-to-book ratio is lower than its industry median ratio of 2.02. This could make Definitive Healthcare Corp. more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Definitive Healthcare Corp.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Definitive Healthcare Corp.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 21.45. This could make Definitive Healthcare Corp. more attractive because the lower P/FCF ratio indicates that Definitive Healthcare Corp. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.
TruBridge, Inc.’s Value Grade
Value Grade:
| Metric | Score | TBRG | Industry Median |
| Price/Sales | 31 | 0.96 | 2.26 |
| Price/Earnings | na | na | 61.8 |
| EV/EBITDA | 19 | 7.0 | 17.8 |
| Shareholder Yield | 59 | (1.0%) | (4.0%) |
| Price/Book Value | 53 | 2.00 | 2.02 |
| Price/Free Cash Flow | 20 | 8.7 | 21.5 |
TruBridge, Inc. provides healthcare solutions and services for community hospitals, clinics, and other healthcare systems in the United States and internationally. The company operates in two segments, Financial Health and Patient Care. It focuses on providing revenue cycle management (RCM) solutions for care settings, and analytics and business intelligence. The company also provides acute care solutions and related services for community hospitals and their physician clinics; and patient engagement and empowerment technology solutions to improve patient outcomes and engagement strategies with care providers. In addition, it offers patient liability estimate, eligibility verification, claim scrubbing and submission, remittance management, denial/audit management, and contract management services; and RCM services, such as accounts receivable management, private pay, medical coding, revenue cycle consulting, and other insurance and patient billing services. Further, the company provides consulting and business management services; managed IT services; encoder solutions; and patient management, financial accounting, clinical, patient care, and enterprise applications. Additionally, it offers acute care software systems, and support and maintenance services; and InstantPHR, an interactive portal, which is designed to serve patient populations and health organizations' needs; and CHBase that funnels data from multiple sources into one platform. The company was formerly known as Computer Programs and Systems, Inc. and changed its name to TruBridge, Inc. in March 2024. TruBridge, Inc. was founded in 1979 and is headquartered in Mobile, Alabama.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
TruBridge, Inc. has a Value Score of 72, which is considered to be undervalued.
TruBridge, Inc.’s price-to-book ratio is lower than its peers. This could make TruBridge, Inc. fairly attractive for value investors when compared to the industry median at 2.02.
You can read more about TruBridge, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Teladoc Health, Inc.’s Value Grade
Value Grade:
| Metric | Score | TDOC | Industry Median |
| Price/Sales | 20 | 0.55 | 2.26 |
| Price/Earnings | na | na | 61.8 |
| EV/EBITDA | 56 | 13.7 | 17.8 |
| Shareholder Yield | 70 | (3.8%) | (4.0%) |
| Price/Book Value | 26 | 1.01 | 2.02 |
| Price/Free Cash Flow | 10 | 4.9 | 21.5 |
Teladoc Health, Inc. provides virtual healthcare services worldwide. It operates through Teladoc Health Integrated Care and BetterHelp segments. The Integrated Care segment offers virtual medical services, including general medical, expert medical, specialty medical, chronic condition management, and mental health, as well as enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment operates a mental health platform that provides online counselling and therapy services through website, mobile applications, phones, and text-based interactions by its licensed clinicians. The company offers its products and services under the Teladoc, Livongo, and BetterHelp brands. It serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018. Teladoc Health, Inc. was incorporated in 2002 and is headquartered in Purchase, New York.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Teladoc Health, Inc. has a Value Score of 72, which is considered to be undervalued.
Teladoc Health, Inc.’s price-to-book ratio is higher than its peers. This could make Teladoc Health, Inc. less attractive for value investors when compared to the industry median at 2.02.
You can read more about Teladoc Health, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Health Care Technology Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Health Care Technology stocks as well as other industrys.
Choosing Which of the 3 Best Health Care Technology Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- Definitive Healthcare Corp. stock has a Value Grade of A.
- TruBridge, Inc. stock has a Value Grade of B.
- Teladoc Health, Inc. stock has a Value Grade of B.
Now that you have a bit more background about each of the 3 undervalued stocks in the Health Care Technology industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Health Care Technology Stocks
Want to learn more about Health Care Technology stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
- 3 Undervalued Health Care Technology Stocks for Friday, July 25
- Does Health Catalyst, Inc. (HCAT) Have Momentum?
- Why Evolent Health, Inc.’s (EVH) Stock Is Down 5.19%
- Does Definitive Healthcare Corp.
(DH) Have Momentum?
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We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.
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