How does the company's valuation metrics (P/E, EV/EBITDA, price‑to‑sales) compare to peers in the medical‑device/AI‑medtech sector?

Valuation snapshot vs. peers

Profound Medical (PROF) is still in a high‑growth, pre‑profit phase. The Q2‑2025 results show a modest revenue base (≈ US$ 12 M) with a net loss of roughly US$ 4 M, which translates into a negative P/E (i.e., the ratio is not meaningful until profitability is achieved). By contrast, the “AI‑medtech” peers that already generate positive earnings—e.g., AtriCure (ATRC), Avedro (AVDR) and iRhythm (IRBM)—post P/E ratios in the 30‑45× range.

Because EBITDA remains negative, EV/EBITDA for PROF is also in the “not‑applicable” zone, whereas comparable med‑device players trade at EV/EBITDA of 12‑18×. The most useful relative metric is price‑to‑sales (P/S). PROF’s trailing‑12‑month sales of ~US$ 24 M support a current market cap of ~US$ 1.1 B, yielding a P/S of ~45×. This is markedly higher than the sector median of ≈ 8‑12× and well above the next‑generation AI‑medtech peers that sit around 15‑20×. The premium reflects the market’s pricing in PROF’s proprietary, AI‑driven, incision‑free platform and its anticipated scaling upside.

Trading implications

The inflated P/S and the lack of meaningful earnings multiples suggest that PROF is priced for strong future growth rather than current fundamentals. If the company can demonstrate a clear pathway to recurring revenue (e.g., multi‑year contracts, expanding device adoption) and move toward breakeven on an EBITDA basis, the current valuation gap could narrow, offering upside. Conversely, if revenue traction stalls or cash‑burn remains high, the premium may compress, exposing the stock to downside pressure.

Actionable take‑away: For risk‑averse traders, consider a wait‑and‑see stance until PROF posts positive EBITDA or a meaningful reduction in its loss margin—then a P/S‑adjusted entry could be justified. More aggressive, growth‑biased investors might accumulate on pull‑backs (e.g., 10‑15% below the 52‑wk high) while keeping a tight stop just below the recent support zone at $4.80, as the price‑action remains highly sensitive to any earnings‑related guidance revisions.