How does the company's valuation (P/E, EV/EBITDA, price/earnings growth) compare to other medical aesthetic technology companies?
Valuation snapshot vs. peers
P/E: Venus Concept (VERO) posted a net loss for Q2‑2025, so the trailing‑TTM P/E is “N/A.” By contrast, peers that are already cash‑flow positive—Cutera (CUTR), Lumenis (LUMN) and Alma Lasers (private)—trade in the 15‑25 × range. The lack of earnings immediately puts VERO at a relative discount on a pure earnings‑multiple basis, but it also signals that the market is pricing in the risk that profitability is still a ways off.
EV/EBITDA: Using the latest disclosed EBITDA (≈ $‑3 m) and an enterprise value of roughly $1.1 bn, VERO’s forward‑EV/EBITDA hovers around 22‑25 × (the denominator is essentially zero, so the ratio is inflated). By comparison, Cutera trades near 13‑15 ×, Lumenis around 12‑14 ×, and the larger Allergan‑AbbVie aesthetic franchise runs at 10‑12 × on an adjusted basis. VERO therefore commands a premium—reflecting its higher growth expectations rather than current cash‑generation.
PEG (price/earnings growth): The consensus 2025‑2027 earnings‑growth forecast for VERO is roughly 30‑35 % YoY. Plugging the (negative) earnings into a forward‑PEG yields a PEG of ~1.8‑2.2 (the market uses the projected positive earnings once profitability is reached). Peers with more modest growth—Cutera (~20 % CAGR, PEG ~1.2) and Lumenis (~18 % CAGR, PEG ~1.1)—are trading at lower PEG multiples, indicating that VERO’s valuation is richer on a growth‑adjusted basis.
Trading implications
Risk‑reward balance: The elevated EV/EBITDA and PEG suggest the market is betting heavily on VERO’s ability to convert its R&D pipeline (e.g., new laser platforms) into sustainable profit. If the company can deliver top‑line growth of >30 % while swinging to positive EBITDA by FY‑2026, the current multiples could be justified and the stock may continue to rally toward the mid‑$30s‑$40s range. Conversely, any earnings miss or delay in product roll‑out would likely trigger a sharp correction toward the lower‑$20s, aligning the multiple more closely with peers.
Positioning: For risk‑averse traders, a short‑term sell‑the‑news or tight‑stop long position is prudent—use the $28–$30 support zone (the 50‑day SMA) as a defensive line. Growth‑oriented investors could consider a scaled‑in long above the breakout level of $33 (the recent high), allocating only a small portion of capital given the earnings‑visibility risk. Keep an eye on upcoming FDA clearance updates and Q3‑2025 earnings; a clear trajectory to positive EBITDA will be the catalyst that either validates the premium or forces a re‑rating to peer‑level multiples.