DaVita (DVA) is a biotechnology company focused on the discovery, development, and commercialization of specialist medicines to cater to the medical needs in rare diseases and other specialized conditions. DaVita reported non-GAAP EPS of $1.15 on revenues of $2.9 billion, a 6.9% growth YoY (year-over-year) compared to $2.7 billion in the second quarter of 2017.
The above chart compares DaVita’s revenues and EPS since the first quarter of 2017. Let’s look now at its valuation multiples.
Forward EV-to-EBITDA multiples
DaVita currently trades at a forward EV[1. enterprise value]-to-EBITDA multiple of ~10.1x, which is higher than the industry average of ~9.2x as of September 17. Competitors UnitedHealth Group (UNH), Fresenius Medical Care (FMS), and Mednax (MD) are trading at a forward EV-to-EBITDA multiple of 13.3x, 10.4x, and 10.1x, respectively.
Forward EV-to-revenue ratios
DaVita currently trades at a forward EV-to-revenue multiple of ~1.9x, while the industry average is ~1.7x as of September 17. Competitors UnitedHealth Group (UNH), Fresenius Medical Care (FMS), and Mednax (MD) are trading at forward EV-to-revenue multiples of 1.2x, 1.9x, and 1.7x, respectively.