PRVA - Privia Health: Key Lessons Learned (Rating Downgrade)
2024-05-21 23:51:45 ET
Summary
- Shares of Privia Health Group have declined 37% since the last report, prompting a reevaluation of our investment thesis.
- PRVA has struggled to earn a decent rate of return on its capital, with a return of only 2.6% in the past year.
- Valuations are stretched, with the company trading at 24x forward earnings and 80x forward EBIT.
Investment Summary
Since our last publication on Privia Health Group, Inc. ( PRVA ), two things are true: 1) investors have not lifted the bid on the company's stock price, and 2) our original investment thesis has not come to fruition. Shares are down 37% from the time of that previous report. An investment "post-mortem, if you will, is due for the benefit of our readers.
Firstly, it's important to realise that any degree of speculation with an investment can lead to undesired outcomes. In that vein, my appraisal of PRVA in August last year made a few critical errors, now clearly viewable in hindsight....
Privia Health: Key Lessons Learned (Rating Downgrade)