WELL Health Technologies Corp T.WELL

What is the justification for a 530 P/E ratio?

[Exronly]

Just learning about WH and wondering why its enjoying such a high P/E ratio of 530 times earnings?  It has a profit of approx $2m on nearly $600m in revenue or a profit of $.01 a share.  I see a lot of folks are predicting the stock to move to $10-$15 running the P/E ratio to an incredible 1500 times earnings potentially?  Are the profits expected to skyrocket??  Not earnings, profits??  TIA

[Noshortsallowed]

One word:growth. What you have is a company with an unbelievable track record of growth (both bottom and top line). If they continue on this trajectory they will easily convert the 50 million of "free cash flow" into EPS. Dejardins predicts 41 cents a share in a short time frame.  They have a unique position in telehealth because of their connection and competitive advantage at the

[Noshortsallowed]

You also have to consider that until recently they were valued on EBITDA and free cash flow. They recently surprised with EPS positivity. So that's not even really supposed to be part of the valuation at this point...

[Exronly]

Makes total Sense    $5.30 share price with $0.41 cents per share earnings is a P/E ratio of 13 times earnings, an incredibly conservative valuation. For a health service provider with exponential growth potential... so $10-15 stock predictions are quite accurate and likely very conservative.  Much help! Thank you!

[monty613]

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

[SunsetGrill]

Really? - Keep learning