Assumptions Scenario Analysis

2021 2022
Revenue 680.00 828.71
11% Bear 660.00 732.25
22% Base 680.00 828.71
30% Bull 700.00 910.08
EBITDA Margin 16% 21%
5% Bear 14% 19%
6% Base 16% 22%
6% Bull 18% 24%

Projections
2021 2022
Revenue 680.00 828.71
EBITDA 108.80 174.03
EBITDA Margin 16% 21%
EV/EBITDA 12.00
EV 6,840.00

EBITDA Multiple - Scenario Sensitivity

Scenario
EV Bear
8x 3,040.00
Ebita Multiple

10x 3,800.00
12x 4,560.00
14x 5,320.00
16x 6,080.00

Scenario
IRR Bear
8x 11.04%
Ebita Multiple

10x 16.11%
12x 20.42%
14x 24.19%
16x 27.55%

Diluted Shares Outstanding 27,200.00

H.I.G Investment Convertible 225,000.00
Assumed conversion at $80/share 2,812.50
Fully diluted shares 30,012.50
Current eHealth Price 60.00
Implied Equity Value (in thousands millions) 1,800.75
is
2023 2024 2025 Scenario: 2
1,009.95 1,230.82 1,500.00 1 Bear
812.40 901.33 1,000.00 2 Base
1,009.95 1,230.82 1,500.00 3 Bull
1,183.22 1,538.32 2,000.00
26% 31% 38%
25% 30% 35%
27% 33% 38%
30% 35% 41%

2023 2024 2025 Bear 380

1,009.95 1,230.82 1,500.00 Base 570
262.59 381.56 570.00 Bull 760
26% 31% 38%

o Sensitivity
Scenario
Base Bull
4,560.00 6,080.00
5,700.00 7,600.00
6,840.00 9,120.00
7,980.00 10,640.00
9,120.00 12,160.00

Scenario
Base Bull
20.42% 27.55%
25.92% 33.37%
30.59% 38.33%
34.68% 42.66%
38.33% 46.52%
 Medicare Major Medical Online Applications
Quarterly 1Q18 2Q18 3Q18 4Q18 1Q19
Online Applications (%) 7% 9% 9% 22% 12%

TTM 4Q18 1Q19

Online Applications (%) 12% 13%

(*) Major Medicare plans include Medicare adbantage and Medicare Supplement plans
(*) Online % represents combination of unassisted and partially agent-assisted online enrollments

Issuance of Common Stock

2016 2017 2018 2019 2020
Equity issuance (in m) 0.00 0.00 0.00 126,051.00 228,024.00
Major Medical Online Applications
2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20
11% 21% 36% 24% 30% 36% 43%

2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

14% 17% 20% 23% 28% 32% 33%

line enrollments

354,075.00
 eHealth - New paying Members & LTVs
Medicare 2017 2018 2019
MA members 118,000.00 148,000.00 236,000.00
growth in % 25% 59%
LTV 903 964 1013
CAC 348 352 685
Medicare Supplement Members 16,000.00 30,000.00 37,000.00
LTV 965 1047 979
CAC 348 352 685
Medicare Part D Members 41,600.00 61,400.00 84,000.00
LTV 266 243 238
CAC 87 88 171.25
Total 175,600.00 239,400.00 357,000.00
weighted LTV 757.74 789.48 827.12
weighted CAC 286.17 284.29 564.12

Individual and Family

Non Qualified Health plans 50,100.00 23,100.00 20,700.00
LTV 136 151 213
Qualified Health Plans 28,400.00 19,600.00 10,300.00
LTV 131 141 217
Total 78,500.00 42,700.00 31,000.00
weighted LTV 134.19 146.41 214.33
weighted CAC 308.00 272.00 169.00

Ancillaries
Short-Term 85,100.00 107,800.00 62,100.00
LTV 65 56 101
Dental 67,900.00 47,300.00 42,400.00
LTV 68 77 70
Vision 31,400.00 24,600.00 21,300.00
LTV 51 55 56
Other 26,500.00 33,500.00 21,600.00
LTV 51 55 56
Total 210,900.00 213,200.00 147,400.00
weighted LTV 62.12 60.39 78.99
weighted CAC 101.64 89.76 55.77

Small Business 15,300.00 19,550.00 17,600.00

LTV 169 168 159
Total 480,300.00 514,850.00 553,000.00
weighted LTV 331.63 410.63 572.09

eHealth - CACs per member group

Medicare 2017 2018 2019
CC&E per MA-equivalent approved member 254 275 355
Variable marketing costs 94 77 330
Total Medicare Costs 348 352 685

Individual and Family Plan ("IFP")

CC&E 242 226 102
Marketing Costs 66 46 67
Total IFP costs 308 272 169
 2020
325,000.00
38%
952
752
35,000.00
1125
752
105,000.00
215
188
465,000.00
798.60
624.65

18,300.00
203
12,400.00
265
30,700.00
228.04
175.00

42,000.00
162
38,000.00
79
17,100.00
55
13,900.00
55
111,000.00
103.70
57.75

14,400.00
157
621,100.00
631.34

2020
368
384
752

92
83
175
 2017 2018 2019 2020
LTV 903 964 1,013 952
CAC 348 352 685 752

612
L
555 1,200
516
1,000 964
459 903
406 800
356
328 309 600
400 348
200
200
0
2017 2

2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E

2017 2018 2019 2020 2021E

LTV-CAC 555 612 328 200 309
 LTV vs CAC
1,200
1,013
1,000 964 952
903

800 752
685
600
400 348 352

200
0
2017 2018 2019 2020

LTV CAC

2022E 2023E 2024E 2025E

356 406 459 516
 Comments

2025 LTV based on 2020 LTV for competitor SelectQuote

Decline in 2021 forecasted due to temporary problems with sales channels, then CAC expected to go up

Expected to grow at least 25% p.a. given current low but expanding market share and rapidly growing market

Same as last year

For simplicity same growth rate as Member growth

Based on US Tax Rate of 21%

 Medicare Segment Analysis
2017 2018
Medicare Segment
LTV per MA equivalent Member 903 964
CAC per MA equivalent Member 348 352
New MA equivalent Members 175,600.00 239,400.00
growth in % 36.33%
Core Variable Profit (in thousands)* 97,458.00 146,512.80

Cost of Revenue 582.00 1,228.00

growth in % 111.00%
General + Administrativ 39,969.00 45,828.00
growth in % 14.66%
Technology Investments 32,900.00 32,000.00
growth in % -2.74%
Recurring Costs 73,451.00 79,056.00

Other Revenue** 7,100.00 12,700.00

growth in % 78.87%

EBIT 31,107.00 80,156.80

Tax Expense 6,532.47 16,832.93
Profit 24,574.53 63,323.87

Diluted Shares Outstanding 27,200.00

H.I.G Investment Convertible 225,000.00
New Shares - Assumed conversion at $80/share 2,812.50
Fully diluted shares 30,012.50
Current eHealth Price 68.00
Implied Equity Value (in thousands millions) 2,040.85
PE Multiple 15.00
2025 forecasted Equity Value (15x P/E) 7,154.70
PV using 15% Discount Rate 3,557.15
Upside 74.30%

(*) Page 100 AR 2019

(**) Medicare Carrier Advertising Revenue

Current Price 68.00

Target Price 118.52
Upside 74.30%
Recommendation BUY
Medicare Segment Analysis
2019 2020 2021E 2022E 2023E 2024E

1013 952 1009 1070 1134 1202

685 752 700 714 728 743
357,000.00 465,000.00 581,250.00 726,562.50 908,203.13 1,135,253.91
49.12% 30.25% 25.00% 25.00% 25.00% 25.00%
117,096.00 93,000.00 179,676.00 258,414.45 368,337.43 521,118.40

2,700.00 4,100.00 6,225.93 9,454.18 14,356.35 21,800.39

119.87% 51.85% 51.85% 51.85% 51.85% 51.85%
64,200.00 76,500.00 95,625.00 119,531.25 149,414.06 186,767.58
40.09% 19.16% 25.00% 25.00% 25.00% 25.00%
47,000.00 65,200.00 74,980.00 86,227.00 99,161.05 114,035.21
46.88% 38.72% 15.00% 15.00% 15.00% 15.00%
113,900.00 145,800.00 176,830.93 215,212.43 262,931.47 322,603.17

39,500.00 74,600.00 111,900.00 156,660.00 203,658.00 244,389.60

211.02% 88.86% 50.00% 40.00% 30.00% 20.00%

42,696.00 21,800.00 114,745.07 199,862.02 309,063.96 442,904.83

8,966.16 4,578.00 24,096.47 41,971.02 64,903.43 93,010.01
33,729.84 17,222.00 90,648.61 157,890.99 244,160.53 349,894.81

2025 P/E Multiple Sensitivity

Equity Value PV Upside
7,154.70
10 #VALUE! 16%
12 #VALUE! #VALUE!
PE Multiple

14 #VALUE! #VALUE!
16 #VALUE! #VALUE!
18 #VALUE! #VALUE!
20 #VALUE! #VALUE!
 2025E Assumptions

1274 LTV growth 6.0%

758 CAC growth 2.0%
1,419,067.38 MA CAGR 25.0%
25.00% Tax Rate 21.0%
732,647.80

33,104.29
51.85%
233,459.47 SG&A growth 25.0%
25.00%
131,140.49 Tech Inv. Growth 15.0%
15.00%
397,704.25

268,828.56 Other Revenue 50.0%

10.00%

603,772.10
126,792.14
476,979.96

Discount Rate 15%

 Competitor Analysis
GoHealth* SelectQuote eHealth
TTM Revenue in m 850.00 772.00 582.80
Revenue Growth 60% 92% 26%
TTM EBITDA 270.00 226.00 83.70
EBITDA Margin 31.76% 29.27% 14.36%
LTV per Approved MA Member 987.00 1,268.00 949.00
Technology Investment 49,818.00 14,722.00 65,188.00
Net Debt 106.00 103.00 -92.00
MarketCap* 4,358.00 4,968.00 2,040.85
EV 4,464.00 5,071.00 1,948.85
P/S 5.13 6.44 3.50
EV/EBITDA 16.53 22.44 23.28

(*) Bloomberg

Relative Valuation
Medicare Brokers 2021 Revenue Growth EV/Sales
eHealth 686 17.67% 3.3
GoHealth 1183 36.29% 3.8
SelectQuote 1103 49.66% 4.5
Benefytt 177 - 4.0

Traditional Brokers
Willis Towers Watson 9657 1.31% 3.5
Arthur Gallagher 7606 11.00% 3.3
Marsh and McClennan 18084 4.99% 3.9
Aon 12154 9.83% 5.1
Q4 Revenue 418.6 358.3 293.3

Q4 EBITDA 168.9 129.5 84.2