TacticScaleWhat Chemed Does & How It Makes Money (CHE)
Updated October 2026 · reflects Chemed's latest reported financials
US hospice care provider that also owns Roto-Rooter plumbing services. VITAS earns revenue by delivering hospice and palliative care services to patients, including medical care and counseling for patients and their families.
How Chemed makes money
VITAS earns revenue by delivering hospice and palliative care services to patients, including medical care and counseling for patients and their families. Roto-Rooter earns service fees for plumbing, drain cleaning and water restoration work, delivered through company-owned branches, independent contractors and franchisees.
What Chemed does
Chemed Corporation is a Cincinnati-based holding company, incorporated in 1970, with two segments. VITAS provides hospice and palliative care, mainly in the United States. Its teams of physicians, registered nurses, home health aides, social workers, clergy and volunteers deliver direct medical care, and they also offer spiritual and emotional counseling to patients and their families. Roto-Rooter provides plumbing, drain cleaning, excavation, water restoration and related services to residential and commercial customers. It works through company-owned branches, independent contractors and franchisees. Together the two segments combine healthcare services with essential home and commercial repair services.
Products & services
- VITAS hospice care
- Palliative care services
- Roto-Rooter plumbing
- Drain cleaning
- Water damage restoration
- Excavation services
What is Chemed worth?
On an owner-earnings DCF, Chemed's most-likely value is about $533 versus a recent price near $500 (7% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$276) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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