RE:RE:RE:RE:RE:Research Capital: Take a pass on Profound MedicalThe June, 2017 article says of the sale of Novadaq (with then CEO Menawat):
“The $701 million purchase price is a whopping 95.8 percent premium over Novadaq’s current share price and 8.4 times its trailing twelve-month revenue. While steep, the transaction is a smart one by Stryker, analysts believe.”
There has been mention here of PRN moving to a sales model where the capital equipment is provided by PRN. This makes sense if the goal is to do more installations faster and get the recurring non-capital revenue from treatments building exponetially. It also makes sense if you wanted to make the revenue potential of PRN clear to a possible buyer.
Stryker paid 8.4 times trailing twelve-month revenue. I could imagine PRN getting a higher multiple as their revenue should be rising very fast & the total market is huge. When they hit $100 million in trailing revenue, 10 times would be $1 billion and not quite $50 per share.