RE:RE:RE:WELL Provides Corporate UpdateSunsetGrill, you have a point being a Canadian company where most healthcare companies are money losing corporations ,it's hard to find comparables.
So , the best I can do is stale and American.
https://www2.deloitte.com/content/dam/insights/us/articles/4919_investments-veiw-of-health-care-market/DI_Investment-view-of-health-care-market.pdf
"Despite overall declining return on
capital, companies with some specialty
focus areas had higher returns than
average, ranging from 10 to 30 percent,
depending on the focus. In 2017, compa-
nies that focused on specialty areas had
the highest ROCs:
– Pharma: Oncology (18 percent), musculo-
skeletal (20 percent), and anti-virals (26
percent)
– Medtech: Robotic surgery (21 percent),
cardio (15 percent), ENT (20 percent), and
in-vitro diagnostics (15 percent)
– Hospitals: Heart (32 percent), surgical (30
percent), and orthopedic (21 percent"
You have to keep in mind as well , that Well has debt which costs money , so what's important is the difference between "that Pre-Tax Unlevered ROIC
1 or "Return on Invested Capital" of approximately 14%. This figure is ~25% for Primary Care and ~11% for WELL Health Diagnostics" and the weighted average cost of capital.
I have no idea of what the WACC is ; not being an accountant
Not sure as well if that ROIC reflects booked gains on AIDX which could reverse quarter to quarter.
If you have information on these , i would appreciate seeing it.
From investopia
What Is Unlevered Cost of Capital?
Unlevered cost of capital is an analysis using either a hypothetical or an actual debt-free scenario to measure a company's cost to implement a particular capital project (and in some cases used to assess an entire company). Unlevered cost of capital compares the cost of capital of the project using zero debt as an alternative to a levered cost of capital investment, which means using debt as a portion of the total capital required.
The unlevered cost of capital is generally higher than the levered cost of capital because the cost of debt is lower than the cost of equity.