Nov. 26 at 4:20 PM
$PACS showing nice strength and plenty of room to go. Despite the run up, still trades at a significant valuation discount to
$ENSG any way you slice it (P/E, EBITDA multiple, EBITDAR multiple). It will take the share price going up to
$50 to trade more in line with ENSG’s current multiple, a comp with effectively an identical model and strategy, size of business, and comparable operating metrics. Outside of PACS legal / compliance issues, that are now ostensibly resolved, there is a very clear case that PACS should trade at ENSG’s multiple, and you can make the case that PACS deserves a multiple premium to ENSG. Only caveat is that I do believe this will minimally take another quarter or two of sustained execution, communication with investors and analysts, etc. to break into
$40’s
