R1 RCM Inc
NASDAQ:RCM
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EV/EBITDA
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBITDA (EV/EBITDA) ratio compares a company`s total enterprise value to its earnings before interest, taxes, depreciation, and amortization. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBITDA returns to its 3-Year Average (15.6), the stock would be worth $14.31 (0% downside from current price).
| Scenario | EV/EBITDA Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 15.6 | $14.31 |
0%
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| 3-Year Average | 15.6 | $14.31 |
0%
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| 5-Year Average | 16.4 | $15.06 |
+5%
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| Industry Average | 12.9 | $11.83 |
-17%
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| Country Average | 14.4 | $13.18 |
-8%
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Forward EV/EBITDA
Today’s price vs future ebitda
| Today's Enterprise Value | EBITDA | Forward EV/EBITDA | ||
|---|---|---|---|---|
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$8B
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/ |
Oct 2024
$514.1m
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= |
|
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$8B
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/ |
Dec 2024
$574.7m
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= |
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$8B
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/ |
Dec 2025
$746.3m
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= |
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$8B
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/ |
Dec 2026
$818m
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= |
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Forward EV/EBITDA shows whether today’s EV/EBITDA still looks high or low once future ebitda are taken into account.
Peer Comparison
| Market Cap | EV/EBITDA | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
R1 RCM Inc
NASDAQ:RCM
|
6B USD | 15.6 | -98.7 | |
| US |
|
CVS Health Corp
NYSE:CVS
|
98.3B USD | 14.1 | 55.6 | |
| US |
C
|
Cigna Group
XMUN:CGN
|
69.3B EUR | 7.8 | 13.4 | |
| US |
|
Cigna Corp
NYSE:CI
|
72.9B USD | 0 | 12.2 | |
| DE |
|
Fresenius SE & Co KGaA
XETRA:FRE
|
24.4B EUR | 9.7 | 19.3 | |
| DE |
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Fresenius Medical Care AG
XMUN:FME
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23.2B EUR | 9.1 | 23.8 | |
| US |
|
Laboratory Corporation of America Holdings
NYSE:LH
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22.5B USD | 12.3 | 25.6 | |
| US |
|
Quest Diagnostics Inc
NYSE:DGX
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22.6B USD | 12.3 | 22.8 | |
| DE |
F
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Fresenius Medical Care AG & Co KGaA
XETRA:FME
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11.1B EUR | 5.4 | 11.3 | |
| US |
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Guardant Health Inc
NASDAQ:GH
|
11.8B USD | -31 | -28.4 | |
| US |
|
DaVita Inc
NYSE:DVA
|
10.3B USD | 7.1 | 13.8 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10 |
| Median | 14.4 |
| 70th Percentile | 21.5 |
| Max | 1 767 274.1 |
Other Multiples
R1 RCM Inc
Glance View
R1 RCM Inc. emerged as a formidable entity in the labyrinthine world of healthcare revenue cycle management, catering to the sprawling intricacies of financial and administrative healthcare operations. The company strategically positions itself as a vital bridge between healthcare providers and the convoluted landscape of billing, insurance claims, and patient payments. By deploying advanced technology platforms and analytics, R1 RCM enhances the efficiency of revenue cycles and streamlines operations for hospitals and physician groups. Its tailored solutions aim to minimize errors, expedite claim submissions, and ultimately maximize revenue collection in an industry often plagued by inefficiencies and regulatory burdens. At the core of R1 RCM's operations is its model of managing the complete revenue cycle on behalf of healthcare clients, transforming a traditionally fragmented process into a cohesive system. The company monetizes this service through long-term partnerships where it shares in the financial gains achieved, ensuring that its interests align with those of its clients. By taking over everything from patient registration and insurance verification to billing and collections, R1 RCM liberates healthcare providers to focus on patient care rather than financial logistics. This comprehensive approach not only fortifies the financial health of its clients but also embeds R1 RCM deeply into the operational fabric of modern healthcare institutions.