MeritValue

Phreesia, Inc.

PHRdata completeness 100%9 fiscal years on file
The thesis, from the filings

Phreesia, Inc. earns about -60% on invested capital, below its ~9% cost of capital, but has diluted owners by 23% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $7.99 and $8.57 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$213.2M1$280.9M2$346M3$410.5M3$467.8M3
Net income−$118.2M4−$176.1M5−$136.9M6−$58.5M6$2.31M6
Operating cash flow−$74.7M7−$90.1M8−$32.4M9$32.4M9$78.8M9
Capital expenditure$18.4M10$4.73M11$5.81M12$8.71M12$11.1M12
Free cash flow (derived)−$93.1M7−$94.9M8−$38.2M9$23.7M9$67.7M9
Total debt$360,00013$246,00014$3.15M15$1.94M16$2.66M17
Cash & equivalents$313.8M18$176.7M19$87.5M20$84.2M21$73.8M21
Diluted shares49.9M52.4M54.6M57.6M61.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$54.83
your share of equity
Profit it earned you last year
$0.37
Free cash flow it threw off
$11.01
Debt you’d be carrying
$0.43

10 shares is a claim on $54.83 of net worth that earned you $0.37 and generated $11.01 of cash last year, against $0.43 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-60% avg · 5y
FY22 -89%FY23 -124%FY24 -63%FY25 -24%FY26 -3%

It earned about -60% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+23% shares · 5y

Share count is up 23% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 638% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $7.99 and $8.57 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$8.57
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$23.7M
DCF · Growth Exit 5Y
$7.99
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$23.7M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
$2.22
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $7.99
The three cases
Bear0.0%$6.66
Base5.0%$7.99
Bull10.0%$9.58

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-01-31 · accession 0001412408-24-000043 (Revenues)
  2. 10-K · period ending 2023-01-31 · accession 0001412408-25-000010 (Revenues)
  3. 10-K · period ending 2024-01-31 · accession 0001412408-26-000079 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-01-31 · accession 0001412408-24-000043 (NetIncomeLoss)
  5. 10-K · period ending 2023-01-31 · accession 0001412408-25-000010 (NetIncomeLoss)
  6. 10-K · period ending 2024-01-31 · accession 0001412408-26-000079 (NetIncomeLoss)
  7. 10-K · period ending 2022-01-31 · accession 0001412408-24-000043 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-01-31 · accession 0001412408-25-000010 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-01-31 · accession 0001412408-26-000079 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-01-31 · accession 0001412408-24-000043 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-01-31 · accession 0001412408-25-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-01-31 · accession 0001412408-26-000079 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-01-31 · accession 0001412408-22-000019 (LongTermDebt)
  14. 10-K · period ending 2023-01-31 · accession 0001412408-23-000023 (LongTermDebt)
  15. 10-K · period ending 2024-01-31 · accession 0001412408-24-000043 (LongTermDebt)
  16. 10-K · period ending 2025-01-31 · accession 0001412408-25-000010 (LongTermDebt)
  17. 10-K · period ending 2026-01-31 · accession 0001412408-26-000079 (LongTermDebt)
  18. 10-K · period ending 2022-01-31 · accession 0001412408-23-000023 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-01-31 · accession 0001412408-24-000043 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-01-31 · accession 0001412408-25-000010 (CashAndCashEquivalentsAtCarryingValue)
  21. 10-K · period ending 2025-01-31 · accession 0001412408-26-000079 (CashAndCashEquivalentsAtCarryingValue)