RE:WELL is at 14xsalesWhat about Teladoc? What about Livongo Health?
Teladoc trading at 22 times its 2020EY revenues and Livongo Health trading at 45 times 2020EY revenues (without taking into consideration a +50 times 2020EY revenues for the takeover by Teladoc).
Clearly the Teladoc deal was a little too expensive, and Teladoc is down by 20% ever since.
But the point stands, WELL at 14X is reasonnable in my opinion. We can argue for hours on this. I'm not saying WELL should be trading at 20X its revenues, but its blunt to state that WELL is overvalued...the sector is growing and probably double for the next five years.
You evaluate a company with its comparables, with the sector, and according to its sector. The highest potential growing sector is the Telehealth as of 2020 and probably will.
That being said, CloudMD is in my opinion the next to pop off in August right before its results of September 1st. At 5X times its revenues, this is a no brainer not buying in at this level.
David