TSXV:RHT.H - Post by User
Comment by
Lifeboat1on Dec 15, 2022 3:57pm
192 Views
Post# 35174193
RE:RE:RE:Valuation
RE:RE:RE:Valuation Iscfa - There is much misleading and wrong in your post.
1. It is actually a good thing that Reliq is not a pure healthcare SAAS company. Based on what I have seen in the Market, pure healthcare SAAS companies have relatively low margins and struggle to add value compared to Competitors. Look at the EHR market.
2. Reliq's professional services are over 50% which is not considered low in any industry. Overall margins are over 60%. Devices are around 50% and software is probably 80% which puts profession services at over 50%. Do the math before posting.
3. Not all healthcare multiples are low. EHR Companies have single digit margins and declining revenue growth so their multiples are low. In 2020 the top 25% of healthcare companies had multiples in the 20-30x range. That has dropped in 2022 as have all multiples but they are still 10x-15x.
Reliq will likely end with something between top healthcare and top SAAS multiples (based on growth rates and GM) which were 20x -70x in 2021 and are now (market low) of 10x - 35x. Reliq's multiple will likely be > 20x in a bad market and > 40x in a good market.