Natnicnak, While the maths works, the logic does not. A sale price for 10 times EBITDA implies an expectation of expanded sales that are speculative, but reasonably anticipated. Selling software fit this investment model. Once you have the process and system, selling more does not have a linear effect on the input costs = increased profit. Same goes a bit for Pathology, as you rely on capital not hands-on so much.
For Vision, the main output has a direct relationship to the number of expensive hands avaialble, and any expansion comes at a big cost - as you need more expensive hands. Given that the medical workforce is determined and probably at about capacity output, the revenue can be fairly easily projected, and 10 times would be a very big punt. Having doctors working for you is a bit like renting out office space without the capital gains!!!
VGH Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
