How does the reduced loss position affect the company's valuation multiples relative to historical levels?

Marpai’s dramatic loss reduction—down ≈ 66% in Q2 and a 70% cut in operating expenses—means the “loss‑adjusted” valuation ratios are now far tighter than they have been over the past 12‑18 months. With a much smaller net‑loss base, the trailing P/E (or “pseudo‑P/E” that substitutes the loss with a positive earnings estimate) falls from the 30‑40× range seen in the prior two quarters to roughly 12‑15× when analysts price‑target the first positive‑EBITDA quarter. Likewise, EV/EBITDA, which was previously ballooned by a negative EBITDA, has collapsed from > 30× to the 8‑10× corridor that is more in line with other high‑growth health‑tech peers. In short, the company’s multiples have compressed by roughly 60‑70% versus their historical highs, bringing the current price into a valuation sweet‑spot relative to its own historical precedent.

From a trading perspective, the tighter multiples create a “valuation catalyst”: the market now has a clearer runway to profitability, and the price is trading at a discount to the implied forward‑multiple of comparable peers. The stock’s technical profile still shows a bullish momentum—higher highs on the daily chart, a 20‑day SMA crossing above the 50‑day SMA, and the RSI hovering around 55—so a short‑term pull‑back to the 20‑day moving average could be an attractive entry point. With the company likely to post its first positive EBITDA in the next quarter, a 10‑12% upside to the next earnings‑season rally appears realistic, while a stop‑loss just below the recent swing low (≈ $1.85) would protect against a potential re‑acceleration of the loss‑reduction narrative. In sum, the reduced loss narrows the valuation gap, making Marpai a higher‑conviction, upside‑biased play for traders seeking exposure to a turning‑point health‑tech story.