RE:US telehealth peersA few comments:
- P/S metrics are awful and lazy, but if one insists on using revenue metrics, then the appropriate one is EV/Sales. If you look at current EV and 2023 estimates, then TDOC is at 2.0X and AMWL is at 1.8X
- purely telehealth multiple should be higher than multiples for physical locations because of the inherent business model leverage. As a result, it is a stretch to apply the TDOC and AMWL multiples to the physical clinic business
So this particular conversation is NOT about the quality of WELL or its subsidiaries. Rather, it is a criticism of lazy analysis that indicates a crazy multiple.
No way that 5X next year's revenue is sane or justifiable.
*cue Shorty*
monty613 wrote: AMWL stock is up almost 100% in the last month, bouncing back from its 52 week low. TDOC is also showing some relative strength.
a note for LarryBird - AMWL trades at 5X-6X sales, loses money on a GAAP basis, and is EBITDA / cashflow negative. a bit of a different scale than Circle (WELL's telehealth sub) with Revenues > $250MM and the fact they're sitting on a pile of cash from a Google investment. it's also pure play telehealth. in any event, thought I would bring this to your attention since you seemed skeptical about comparables garnering a 5X Rev valuation.
as an aside I would note that US institutional investors are usually far more comfortable paying for growth. I don't think a NASDAQ listing is in the cards for WELL, it's too bad they missed their window of opportunity on that.