Using the industry peer median P/E multiple (trailing + forward), DexCom, Inc. (DXCM) has a fair value of $55.26 based on 7 comparable companies in the Medical - Devices industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| DexCom, Inc.DXCM | 26,967 | 31.8x | 26.7x |
| Biogen Inc.BIIB | 28,066 | 21.7x | 12.1x |
| Labcorp Holdings Inc.LH | 22,295 | 25.7x | 15.1x |
| STERIS plcSTE | 22,031 | 36.2x | 26.1x |
| Waters CorporationWAT | 18,034 | 28.2x | 21.1x |
| West Pharmaceutical Services, Inc.WST | 18,029 | 36.8x | 31.2x |
| Zimmer Biomet Holdings, Inc.ZBH | 17,579 | 25.0x | 10.6x |
| Insulet CorporationPODD | 15,416 | 62.9x | 34.6x |
| Industry Median | 28.2x | 21.1x | |
| (*) Profit after tax | 836 | 1,009 | |
| Equity Value | 23,554 | 21,265 | |
| (/) Outstanding shares | 406 | 406 | |
| Fair Price | $58 | $52 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.