BrightSpring Health Services, Inc.

Where It Passes

Where It Falls Short

• Valuation0% pass✗ 28▾

  All 13 investors flag BTSG's valuation

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio7.4x

  ✗Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 81.9x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value3.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.3%, ROC=88.8%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS81.9x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)28.1x

  ✗Dreman< 8x

  Price / Book Value per Share7.4x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=81.9x, OE Yield=1.9%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=81.9x, FCF Yield=2.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=81.9x, P/B=7.4x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share34.9x

  ✗Ackman<= 25

  Price vs. Trailing Low406% of trailing low ($17.53)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization+2.90%; #2410/6340 (top 38.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.1536; #4444/6449 (top 68.9%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS81.9x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+1.0763; #1685/5247 (top 32.1%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+3.48%; #1934/4519 (top 42.8%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+15.45%; #1576/6202 (top 25.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth0% pass✓ 3✗ 10▾

  No clean pass — all 8 investors flag at least one growth criterion

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 81.9x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 5.1% vs Rev: 22.9%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency1/4 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth28.2%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 14.8% -> 11.8%, operating margin 0.8% -> 2.3%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Profitability6% pass✓ 12✗ 23▾

  15 of 16 flag BTSG's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)1/5 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)1/5 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-6.1%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)2.3% (latest)

  ✓BuffettStable or rising over 10 years

  Free Cash Flow Proxy$259.5M

  ✓BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 81.9x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE18.8%

  ✓Lynch> 15%

  EBIT / Enterprise Value3.3%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=3.3%, ROC=88.8%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets2.97%

  ✓PiotroskiROA > 0

  ROA Change YoY-0.30% -> 2.97% (delta: +3.28%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=7.64%, ROA=2.97%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY12.6% -> 11.8%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue2.5%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity18.8%

  ✓Dreman> 12%

  Margin of SafetyP/E=81.9x, P/B=7.4x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity-5.8% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency1/4 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue3.4%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity18.8%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend0.8% (2023) -> 2.3% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 14.8% -> 11.8%, operating margin 0.8% -> 2.3%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization+2.90%; #2410/6340 (top 38.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+30.42%; #1404/3702 (top 37.9%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+18.85%; #852/5226 (top 16.3%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0236; #1630/5884 (top 27.7%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts13% pass✓ 2✗ 13▾

  Split decision: 12 FAIL · 2 NEUTRAL · 1 PASS · 1 BUY

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (2/9)✗LynchFAIL (3/7)✗GreenblattRank #844•PiotroskiNEUTRAL (F-Score 7)✗DremanFAIL (3/11)✗MungerFAIL (0/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✗AckmanFAIL (3/9)✗TempletonFAIL (2/8)✓SleepPASS (3/6)✓AsnessBUY (Rank #646/2370 (Top 27.3%))✗NeffFAIL (2/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage17% pass✓ 4✗ 11▾

  10 of 12 flag BTSG's debt & leverage — Graham, Buffett, Lynch +7 more

  LT Debt vs Net Current AssetsLT Debt $2.1B vs NCA $1.1B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.00, IC: 3.6x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1

  ✗Lynch< 0.33

  Cash - Long-term Debt$-1.4B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change43.23% -> 38.28%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities1.62

  ✓Dreman> 1.5✓SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=3.6x, D/EBITDA=3.2x

  ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.0025; #3230/4210 (top 76.7%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation models17% pass✓ 1✗ 5▾

  Models split on BTSG at $71.21 — fair values range $6.28–$73.06

  Graham fair value$13.77

  ✗Graham-417.1% margin vs $71.21

  Buffett fair value$15.84

  ✗Buffett-349.6% margin vs $71.21

  Greenblatt fair value$6.28

  ✗Greenblatt-1033.9% margin vs $71.21

  Munger fair value$37.15

  ✗Munger-91.7% margin vs $71.21

  Pabrai fair value$23.23

  ✗Pabrai-206.5% margin vs $71.21

  Ackman fair value$73.06

  ✓Ackman+2.5% margin vs $71.21
• Efficiency38% pass✓ 4✗ 7▾

  5 of 8 flag BTSG's efficiency — Graham, Buffett, Munger +2 more

  Current Ratio1.62

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)2.9%

  ✗Buffett> 10%

  ROIC - WACC-7.1%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)88.8%

  ✓Greenblatt> 25%

  Current Ratio Change YoY1.33 -> 1.57

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY1.70x -> 2.01x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities1.62

  ✓Dreman> 1.5

  Return on Invested Capital9.4%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=1.2%; FY2024: ROIC=2.0%; FY2025: ROIC=5.3%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC5.3% (RR=100% x ROIC=5.3%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/3 years above 12% (latest 5.3%)

  ✗SleepROIC > 12% in a majority of years
• Cash Flow50% pass✓ 6✗ 6▾

  5 of 10 pass — Dreman, Pabrai, Marks +2 more object

  Free Cash Flow Proxy$259.5M

  ✓BuffettPositive and growing

  FCF Positive and Growing$492.4M

  ✓LynchPositive and growing

  Operating Cash Flow$490.2M

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=7.64%, ROA=2.97%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)28.1x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=81.9x, FCF Yield=2.8%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive2/4 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap3.6%

  ✗Ackman>= 4%

  Price / FCF per Share34.9x

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency3/4 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$492.4M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+3.48%; #1934/4519 (top 42.8%)

  ✗OshaughnessyTop 10% of eligible cross-section