Viemed Healthcare Valuation

Q: What is the Fair Price of VMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

VMD (CA$10.45) is trading below our estimate of [[fair value]] (CA$20.08)

Is VMD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VMD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VMD (CA$10.45) is trading below our estimate of fair value (CA$20.08)

Significantly Below Fair Value: VMD is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VMD?

Key metric: As VMD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for VMD. This is calculated by dividing VMD's market cap by their current earnings.
What is VMD's PE Ratio?
PE Ratio	33x
Earnings	US$9.20m
Market Cap	US$235.14m

VMD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	7x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does VMD's PE Ratio compare to its peers?

The above table shows the PE ratio for VMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	17.5x
AND Andlauer Healthcare Group	25.8x	n/a	CA$1.7b
WELL WELL Health Technologies	17x	-17.4%	CA$1.3b
DR Medical Facilities	13.9x	15.9%	CA$354.1m
EXE Extendicare	13.1x	n/a	CA$849.7m
VMD Viemed Healthcare	33x	49.4%	CA$311.8m

Price-To-Earnings vs Peers: VMD is good value based on its Price-To-Earnings Ratio (33x) compared to the peer average (36.5x).

Price to Earnings Ratio vs Industry

How does VMD's PE Ratio compare vs other companies in the North American Healthcare Industry?

4 Companies	Price / Earnings	Estimated Growth	Market Cap

4 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: VMD is expensive based on its Price-To-Earnings Ratio (33x) compared to the North American Healthcare industry average (23.8x).

Price to Earnings Ratio vs Fair Ratio

What is VMD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	33x
Fair PE Ratio	38.8x

Price-To-Earnings vs Fair Ratio: VMD is good value based on its Price-To-Earnings Ratio (33x) compared to the estimated Fair Price-To-Earnings Ratio (38.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst VMD forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Nov ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Oct ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Sep ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Aug ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Jul ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Jun ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
May ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Apr ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Mar ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Feb ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Jan ’25	n/a	CA$18.71 0%	4.6%	CA$19.58	CA$17.84	n/a	2
Dec ’24	CA$10.36	CA$18.71 +80.6%	4.6%	CA$19.58	CA$17.84	n/a	2
Nov ’24	CA$8.41	CA$18.94 +125.2%	4.6%	CA$19.82	CA$18.06	n/a	2
Oct ’24	CA$9.11	CA$18.94 +107.9%	4.6%	CA$19.82	CA$18.06	n/a	2
Sep ’24	CA$11.00	CA$18.94 +72.2%	4.6%	CA$19.82	CA$18.06	n/a	2
May ’24	CA$14.65	CA$18.69 +27.6%	5.9%	CA$19.79	CA$17.59	n/a	2
Apr ’24	CA$13.07	CA$16.35 +25.1%	10.2%	CA$18.01	CA$14.68	n/a	2
Mar ’24	CA$12.31	CA$15.18 +23.3%	4.5%	CA$15.86	CA$14.50	n/a	2
Feb ’24	CA$11.63	CA$15.18 +30.6%	4.5%	CA$15.86	CA$14.50	n/a	2
Jan ’24	CA$10.27	CA$15.18 +47.8%	4.5%	CA$15.86	CA$14.50	n/a	2
Dec ’23	CA$9.92	CA$15.18 +53.1%	4.5%	CA$15.86	CA$14.50	CA$10.36	2
Nov ’23	CA$9.08	CA$14.62 +61.0%	7.6%	CA$15.73	CA$13.50	CA$8.41	2

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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