- If you are looking at Integer Holdings and wondering whether the current share price reflects its true worth, this article will walk you through how that value stacks up using several common yardsticks.
- The stock last closed at US$82.98, with returns of a 1.2% decline over 7 days, a 4.8% decline over 30 days, an 8.1% gain year to date, and a 29.6% decline over the past year. These moves may have shifted how the market views its risk and potential.
- Recent attention on Integer Holdings has centered on its role in the medical device supply chain and how sentiment around healthcare outsourcing is feeding into expectations for the business. This backdrop helps frame why the share price has moved the way it has and why investors are reassessing what they are willing to pay.
- On Simply Wall St's 6 point valuation framework, Integer Holdings scores 3 out of 6. We will break this down using methods like multiples and discounted cash flow, and then finish with a broader way to think about valuation that goes beyond the usual formulas.
Find out why Integer Holdings's -29.6% return over the last year is lagging behind its peers.
Approach 1: Integer Holdings Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a company might be worth by projecting its future cash flows and then discounting them back to today using a required rate of return. It is essentially asking what those future dollars are worth in present terms.
For Integer Holdings, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is reported at about $81.5 million. Based on analyst input and extrapolations by Simply Wall St, free cash flow is projected to reach about $376.3 million in 2035, with intermediate years such as 2026 at $99.2 million and 2027 at $187.9 million. All of these cash flows are then discounted to today using the DCF framework.
Pulling this together, the DCF model arrives at an estimated intrinsic value of about $141.04 per share, compared with the recent share price of $82.98. That gap implies the stock is around 41.2% undervalued on this cash flow view.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Integer Holdings is undervalued by 41.2%. Track this in your watchlist or portfolio, or discover 48 more high quality undervalued stocks.
Approach 2: Integer Holdings Price vs Earnings
For a profitable company like Integer Holdings, the P/E ratio is a useful yardstick because it links what you pay per share directly to the earnings the business is generating today. Investors typically look for a P/E that fits their view of the company’s growth prospects and risk, with higher expected growth or lower perceived risk often supporting a higher “normal” P/E.
Integer Holdings currently trades on a P/E of 27.8x. That sits close to the Medical Equipment industry average of 26.8x and below the broader peer group average of 79.6x, which suggests the stock is not priced at the top end of the range within its space. Simply Wall St also calculates a proprietary “Fair Ratio” for Integer Holdings of 25.1x, which reflects factors such as its earnings growth profile, industry, profit margins, market cap and specific risks.
This Fair Ratio aims to be more tailored than a simple comparison with peers or the industry, because it adjusts for company specific characteristics rather than assuming one size fits all. Set against the current P/E of 27.8x, the stock screens as somewhat expensive on this metric.
Result: OVERVALUED
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Upgrade Your Decision Making: Choose your Integer Holdings Narrative
Earlier we mentioned that there is an even better way to understand valuation, so Narratives on Simply Wall St let you attach a clear story about Integer Holdings to the numbers by linking your view of its medical device role, future revenue, earnings and margins to a financial forecast and a Fair Value, comparing that Fair Value with the current share price to help you judge whether to buy or sell, and then updating that view automatically as new earnings, guidance or news come through. This is why on the Community page you can already see very different Integers stories, from more optimistic users who think outcomes closer to the US$155 price target are reasonable to more cautious users who anchor nearer US$132, all using the same framework to turn their perspective into a live, testable Narrative.
Do you think there's more to the story for Integer Holdings? Head over to our Community to see what others are saying!
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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