R1 RCM Holdco Inc
F:6HL0
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (40.7), the stock would be worth €12.56 (6% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 43.4 | €13.4 |
0%
|
| 3-Year Average | 40.7 | €12.56 |
-6%
|
| 5-Year Average | 41.7 | €12.86 |
-4%
|
| Industry Average | 19.2 | €5.94 |
-56%
|
| Country Average | 19.6 | €6.05 |
-55%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
€7.3B
|
/ |
Oct 2024
$198.7m
|
= |
|
|
€7.3B
|
/ |
Dec 2024
$93.4m
|
= |
|
|
€7.3B
|
/ |
Dec 2025
$232.5m
|
= |
|
|
€7.3B
|
/ |
Dec 2026
$347.5m
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
R1 RCM Holdco Inc
F:6HL0
|
5.7B EUR | 43.4 | -108.8 | |
| US |
|
CVS Health Corp
NYSE:CVS
|
98.3B USD | 14.1 | 55.6 | |
| US |
C
|
Cigna Group
XMUN:CGN
|
69.3B EUR | 9.9 | 13.4 | |
| US |
|
Cigna Corp
NYSE:CI
|
72.9B USD | 0 | 12.2 | |
| DE |
|
Fresenius SE & Co KGaA
XETRA:FRE
|
24.4B EUR | 14.2 | 18.9 | |
| DE |
|
Fresenius Medical Care AG
XMUN:FME
|
23.2B EUR | 16.9 | 23.8 | |
| US |
|
Quest Diagnostics Inc
NYSE:DGX
|
22.6B USD | 16.5 | 22.8 | |
| US |
|
Laboratory Corporation of America Holdings
NYSE:LH
|
22.5B USD | 17.8 | 25.6 | |
| DE |
F
|
Fresenius Medical Care AG & Co KGaA
XETRA:FME
|
11.1B EUR | 9.9 | 11.2 | |
| US |
|
Guardant Health Inc
NASDAQ:GH
|
11.8B USD | -28.2 | -28.4 | |
| US |
|
DaVita Inc
NYSE:DVA
|
10.3B USD | 9.7 | 13.8 |
Market Distribution
| Min | 0 |
| 30th Percentile | 13.6 |
| Median | 19.6 |
| 70th Percentile | 27.8 |
| Max | 1 826 183.2 |
Other Multiples
R1 RCM Holdco Inc
Glance View
R1 RCM Holdco Inc. is a leading provider of revenue cycle management (RCM) services to healthcare providers across the United States. Originating from the need for healthcare institutions to efficiently handle the intricacies of billing and collections, R1 RCM offers comprehensive solutions that streamline patient registration, medical coding, billing, and data analytics. By leveraging cutting-edge technology and automation, the company helps hospitals and healthcare systems optimize their operations, reduce administrative burdens, and enhance cash flow. This involves a meticulous approach to improving the accuracy of billing and collections processes, ultimately boosting revenue realization for its clients. The company generates revenue primarily through long-term contracts with healthcare facilities, where it earns fees based on the savings and additional cash collected on behalf of its clients. This results in a business model that is closely aligned with the financial performance of its partners, incentivizing efficiency and improved cash management. R1 RCM's services include managing clients' revenue streams from insurance payers, government programs, and patients, ensuring compliance with regulatory standards, and providing strategic insights through data analytics. This not only contributes to the company's growth but also positions it as a vital ally in the healthcare sector’s ongoing battle against rising operational costs.
