What multiples would I use for the Managed Care industry?

Question in title, companies liked Aetna, Cigna, etc. What multiples should be used? P/E, P/B, PEG, not EV/EBITDA, are ones that I know, are there any industry specific multiples I should use?

6 Comments
 

you use forward looking p/e. you dont look at price / book despite mcos effectively being financial institutions.

more specifically, the industry is moving away from reporting in gaap p/e towards reporting cash p/e. simply adjust earnings for the amortization line in the P&L, not cash flows. Reason being the P&L line is specific for amort due to acquisitions, which is how mcos grow.

 

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