InnovAge Holding Valuation

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

INNV ($4.7) is trading below our estimate of [[fair value]] ($35.81)

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

Valuation Score

5/6

Valuation Score 5/6

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

Share Price vs Fair Value

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

Below Fair Value: INNV ($4.7) is trading below our estimate of fair value ($35.81)

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

Key Valuation Metric

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

Key metric: As INNV is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for INNV. This is calculated by dividing INNV's market cap by their current revenue.
What is INNV's PS Ratio?
PS Ratio	0.8x
Sales	US$786.51m
Market Cap	US$647.48m

INNV 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	0.9x
Enterprise Value/EBITDA	256.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does INNV's PS Ratio compare to its peers?

The above table shows the PS ratio for INNV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	1.7x
SBC SBC Medical Group Holdings	2.9x	5.2%	US$675.1m
AVAH Aveanna Healthcare Holdings	0.6x	4.8%	US$1.1b
AMN AMN Healthcare Services	0.3x	-5.4%	US$953.7m
TALK Talkspace	2.9x	18.8%	US$522.0m
INNV InnovAge Holding	0.8x	10.5%	US$647.5m

Price-To-Sales vs Peers: INNV is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does INNV's PS Ratio compare vs other companies in the US Healthcare Industry?

31 Companies	Price / Sales	Estimated Growth	Market Cap
MCK McKesson	0.2x	8.1%	US$78.15b
CVS CVS Health	0.2x	4.6%	US$70.18b
COR Cencora	0.2x	6.4%	US$47.23b
CNC Centene	0.2x	5.5%	US$29.19b

31 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: INNV is good value based on its Price-To-Sales Ratio (0.8x) compared to the US Healthcare industry average (1x).

Price to Sales Ratio vs Fair Ratio

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

INNV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.8x
Fair PS Ratio	2.6x

Price-To-Sales vs Fair Ratio: INNV is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (2.6x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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