Pacific Smiles

Dental practices company Pacific Smiles is in strong growth mode as a result of rapid opening of new practices and a high Net Promoter Score on the part of the patients. In FY21 revenue grew 21% to $241m and EBITDA was up 40% to $31m. The business has been impacted by lockdowns and this is expected to half FY22 EBITDA on consensus numbers. However, FY23 is expected to return to strong growth. On FY24 consensus estimates, Pacific Smiles is trading on an EV/EBITDA multiple of 10.9x, which is low given the 18% growth expected that year. A strong feature of Pacific Smiles is the high level of revenue and EBITDA for centres more than five years old.


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