Valuation multiples used in healthcare, FIG and Public Sector groups
IB
(Chimp, 6
Points)
on 1/11/08 at 6:48am
What valuation multiples are commonly used in healthcare, FIG and Publis Sector groups? I have interviews coming up and I had indicated these three as my industry groups of interest.





P/B- price to book is used
P/B- price to book is used for FIG. Not sure about the other 2
Healthcare
depends which sector of healthcare.
Biotech companies typically aren't profitable so it's usually EV/Revenue, or some form of cash burn analysis (how much cash the company has remaining till it won't be able to operate, this is why you see biotech companies doing lots of equity related product offerings).
Healthcare services - some more specific metrics used depending if they are facility based or not, have a large rental expense etc are: EV/EBITDA - Rent or EV/EBITDA - Capex/Maintenance Capex. Also, for hospitals you can get into KPIs like Revenue/Bed, Revenue/Head.
Medtech and pharma are typical valuation metrics EV/EBITDA blah blah.
Thanks for the responses!
Thanks for the responses!