RE:What is the justification for a 530 P/E ratio?if you look at WELL's income statement there is a huge amount of depreciation/amortization. this relates to their CRH Medical business which amortizes the contracts they have with GI doctors to provide anesthesia services. it is not the typical depreciation/amortization on things like equipment that eventually needs to be replaced, like a CAPEX heavy business. this is an extremely CAPEX light business and I believe they even lease all of their real estate (CRH doesn't even need real estate as they operate as a vendor to existing medical clinics).
EV:EBITDA or a similar cashflow leverage comparison is the better metric to evaluate WELL and its peers, not P/E. many of WELL's peers aren't even cashflow positive.
look at WELL's earnings news releases to see the breakdown of how they calculated Adjusted EBITDA and Adjusted Net Income and decide for yourself which add-backs are reasonable.