Stat of the Week: CVS’s 10.9x EBITDA

Stat of the Week: CVS’s 10.9x EBITDA

If you can’t beat ’em, buy ’em. Or be bought. That’s the path Aetna (NYSE: AET) is taking, perhaps, as the healthcare industry reacts to news that the health insurer is in talks with CVS Health Corp. (NYSE: CVS) to be acquired for $200 per share, approximately $66 billion. The deal may never be consummated, but it’s gotten a lot of analysts weighing in on the paradigm shift it would bring to the industry. Frank Morgan of RBC Capital Markets gave the nod to vertical integration between managed care organizations, pharmacy benefit managers (PBMs) and providers, given that the managed care companies’ push for horizontal integration in 2013 ended badly... Read More »