- If you are wondering whether Integer Holdings at US$86.83 is priced attractively or not, you are in the right place to break down what that tag might really mean for you.
- The stock has returned 2.9% over the last 7 days and 13.1% year to date, although the 1 year return sits at a 26.1% decline, which can change how the market views both risk and opportunity around the shares.
- Recent news flow around Integer Holdings has focused on its role as a specialist medical device manufacturer and its positioning within the broader healthcare sector. This helps set expectations around quality and growth potential. At the same time, commentary has highlighted how sector wide sentiment can affect companies like Integer Holdings regardless of their individual fundamentals.
- Right now, Integer Holdings scores 3 out of 6 on Simply Wall St's valuation checks, giving it a value score of 3. The next sections will walk through the different valuation methods behind that number before finishing with a more rounded way to think about what the stock might be worth.
Find out why Integer Holdings's -26.1% return over the last year is lagging behind its peers.
Approach 1: Integer Holdings Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow model takes projected future cash flows, then discounts them back to today to estimate what the business might be worth right now. It concentrates on the cash the company could generate for shareholders over time, rather than short term share price moves.
For Integer Holdings, the latest twelve month Free Cash Flow sits at about $81.5 million. Analysts provide explicit forecasts out to 2027, where Free Cash Flow is projected at $187.9 million, and Simply Wall St then extends those estimates out to 2035 using a 2 Stage Free Cash Flow to Equity model. All cash flows are assessed in $ before being discounted to today.
On this basis, the DCF model arrives at an estimated intrinsic value of about $142.21 per share. Compared with the recent share price of around $86.83, this implies the shares trade at roughly a 38.9% discount to that DCF estimate. This suggests Integer Holdings appears undervalued on this cash flow view.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Integer Holdings is undervalued by 38.9%. Track this in your watchlist or portfolio, or discover 61 more high quality undervalued stocks.
Approach 2: Integer Holdings Price vs Earnings
For profitable companies, the P/E ratio is a straightforward way to link what you pay for each share to the earnings that support it. It helps you see how many dollars investors are currently willing to pay for each dollar of earnings.
What counts as a “normal” P/E depends on how the market views a company’s growth outlook and risk profile. Higher growth and perceived resilience can support a higher P/E, while more uncertainty or lower growth usually points to a lower, more conservative multiple.
Integer Holdings currently trades on a P/E of 29.1x. That sits slightly above the Medical Equipment industry average of about 27.7x and well below the peer group average of 98.9x. Simply Wall St also calculates a Fair Ratio of 25.3x, which reflects what might be reasonable for Integer Holdings given factors such as its earnings growth, profit margins, size, industry and risk profile.
This Fair Ratio is more tailored than a simple comparison with peers or the sector, because it adjusts for company specific characteristics rather than assuming all Medical Equipment stocks deserve the same multiple. Comparing 29.1x to the 25.3x Fair Ratio suggests Integer Holdings looks expensive on this earnings based view.
Result: OVERVALUED
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Upgrade Your Decision Making: Choose your Integer Holdings Narrative
Earlier there was mention that there is an even better way to understand valuation. Narratives on Simply Wall St help you attach a clear story about Integer Holdings to the numbers by linking your view on its future revenue, earnings and margins to a forecast. This turns that view into a fair value, which you can then compare with the current share price to frame potential buy or sell decisions. Narratives also help you keep that view current as new earnings or news appear. You can see this in practice when one investor builds a Narrative around the analyst fair value of US$93.25 with revenue at US$2.1b, earnings of US$178.1m and a 22.2x P/E in 2029, while another uses more cautious or more optimistic assumptions. Each Narrative on the Community page therefore reflects a different, clearly explained path for the same stock.
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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