3 Takeaways From PLNT's FDD: Slow & Steady

Research evidence excerpt

3 Takeaways From PLNT's FDD: Slow & Steady

TD Cowen Planet Fitness

Global Research June 11, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Health & Wellness:

Our valuation methodology is primarily based on either Enterprise Value to EBITDA (EV/EBITDA),

Price-to-Free Cash Flow (P/FCF) ratio (or FCF yield), or Price-to-Earnings (P/E) ratios, and DCF

analysis. We may also use Enterprise Value to Revenue (EV/Revs) for companies operating at

depressed levels of profitability. In some cases we use probability weighed, scenario-based

decision trees as a basis for devising our price targets. We incorporate the company’s and its

peers’ historical and current valuation multiples, as well as our analysis of future growth rates,

company-specific risks, return on invested capital, and other inputs from our research when

devising our valuation multiples and the probabilities we assign to different scenarios when

developing our price targets.

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

Risks to the companies in our sector include risks and uncertainties associated with the global

economic environment and consumer spending, as well as general competition within the

broader Fitness industry and fluctuating consumer preferences, which can create variability in

sales and margins. Increases in the prices of rent, freight, labor, or equipment may negatively

impact results. Execution flaws and the departure of certain key executives may negatively

affect performance and financial results.