1Q26 Results: +$26m Adj EBITDA, FY26 EBITDA Guidance Raised By +$30m

Research evidence excerpt

1Q26 Results: +$26m Adj EBITDA, FY26 EBITDA Guidance Raised By +$30m

TD Cowen P3 Health Partners

Global Research May 14, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Health Care Facilities & Services:

We value mature healthcare providers on the basis of EV/EBITDA. Legacy healthcare facilities

and services companies have traded at a 10-yr median EV/EBITDA multiple of 9.3x, with a

peak of 12.0x in 2021 and a trough of 5.9x in 2012. Emerging, high-growth providers tend to be

unprofitable and therefore are valued primarily on a forward EV/Sales multiple. We supplement

both EV/EBITDA and EV/Sales valuation methodologies with discounted cash flow analysis.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

Investment Risks

Mature FFS providers continue to face higher staffing costs and turnover while reimbursement

generally lags, creating margin pressure. While demand and patient volume growth has

recently recovered, the sustainability of this rebound is still a question. Broadly, the CMS has

generally issued more onerous reimbursement and regulatory provisions for home health and

Medicare Advantage.

Our emerging, high growth coverage universe bears the following investment risk: highly-

valued thematic or story stocks underperform when a fundamental aspect of the story "breaks"

or when broader equity market valuations correct, often during recessions. Underperformance

in such periods is exacerbated for unprofitable and/or highly-levered companies.

Risks To The Price Target