DaVita's business model is able to provide the company with very reliable and stable revenues, as patients need their dialysis treatment on a constant basis. In spite of the aggressive stock buybacks, the company's valuation has failed to take off, as DaVita's valuation multiple has remained rather cheap, predominantly below 20X earnings. DaVita has the potential to deliver double-digit in the medium term, powered by aggressive capital returns and an attractive valuation.