iRhythm Technologies, Inc.

IRTC

HealthcareMedical - DevicesNASDAQ

$116.84

Market Cap: $3.84B

iRhythm Technologies, Inc. (IRTC) Valuation Summary

Updated Apr 6, 2026 22:26

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.13 – $126.88	$21.24	-81.9%
Revenue DCF 10Y	$5.41 – $243.62	$61.50	-47.5%
▸ Trading Multiples
EV/Revenue	$34.37 – $229.35	$46.82	-60.1%

Valuation History

DCF Analysis

iRhythm Technologies, Inc. (IRTC) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$61.50

Market Price

$116.84

Upside / Downside

-47.4%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -4.9% to a target of 13.3% over 5 years, discounted at a WACC of 7.9%, iRhythm Technologies, Inc. (IRTC) has an intrinsic value of $61.50 per share (range: $5.41 – $243.62).

Key Assumptions

Current Operating Margin

-4.9%

Target Operating Margin

13.3%

WACC

7.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.2%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	876	17.3%	-1.3%	-11	-11	25	(62)	27	-75	-73
2027	1,016	15.9%	2.4%	24	19	29	(71)	20	-42	-37
2028	1,180	16.2%	6.0%	71	56	34	(81)	23	-14	-11
2029	1,375	16.5%	9.7%	133	105	40	(93)	27	25	19
2030	1,695	23.3%	13.3%	226	179	49	(112)	45	71	50
2031	2,034	19.9%	13.3%	271	214	59	(132)	47	94	62
2032	2,371	16.6%	13.3%	316	250	68	(151)	47	120	73
2033	2,683	13.2%	13.3%	358	283	77	(168)	44	149	84
2034	2,945	9.8%	13.3%	393	310	85	(180)	37	178	93
2035	3,133	6.4%	13.3%	418	330	90	(188)	26	206	100

Enterprise Value Bridge

Sum of PV(FCFF)360

Terminal Value (Gordon Growth at 3.0%)4,331

PV of Terminal Value2,103

Enterprise Value2,463

(–) Net Debt495

Equity Value1,968

(÷) Shares Outstanding32

Fair Value per Share$61.50

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
5.9%	$17	$74	$130	$187	$244
6.9%	$5	$46	$87	$128	$169
7.9%	$-2	$30	$62	$93	$125
8.9%	$-6	$19	$45	$70	$96
9.9%	$-9	$12	$33	$54	$75

Current price: $116.84. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 14.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

iRhythm Technologies, Inc. (IRTC) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$21.24

Market Price

$116.84

Upside / Downside

-81.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-4.9%

Target Operating Margin

13.3%

WACC

7.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.2%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	876	17.3%	-1.3%	-11	-11	25	(61)	27	-74	-72
2027	1,016	15.9%	2.4%	24	19	29	(68)	20	-40	-35
2028	1,180	16.2%	6.0%	71	56	34	(77)	23	-9	-8
2029	1,375	16.5%	9.7%	133	105	40	(86)	27	32	24
2030	1,695	23.3%	13.3%	226	179	49	(102)	45	81	57

Enterprise Value Bridge

Sum of PV(FCFF)-33

Terminal Value (Gordon Growth at 3.0%)1,700

PV of Terminal Value1,208

Enterprise Value1,175

(–) Net Debt495

Equity Value680

(÷) Shares Outstanding32

Fair Value per Share$21.24

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
5.9%	$-21	$16	$53	$90	$127
6.9%	$-21	$6	$33	$60	$87
7.9%	$-21	$0	$21	$42	$63
8.9%	$-21	$-4	$14	$31	$48
9.9%	$-21	$-6	$8	$23	$37

Current price: $116.84. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 14.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$46.82

Market Price

$116.84

Upside / Downside

-59.9%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), iRhythm Technologies, Inc. (IRTC) has a fair value of $46.82 based on 8 comparable companies in the Medical - Devices industry.

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
iRhythm Technologies, Inc.IRTC	3,739	5.7x	5.7x
Arrowhead Pharmaceuticals, Inc.ARWR	8,559	10.5x	19.1x
BrightSpring Health Services, Inc. Common StockBTSG	8,421	0.9x	0.8x
Glaukos CorporationGKOS	6,777	13.5x	11.1x
Bausch + Lomb CorporationBLCO	5,790	2.1x	2.1x
Bruker CorporationBRKR	5,593	2.1x	2.0x
Chemed CorporationCHE	5,451	2.2x	2.3x
Teleflex IncorporatedTFX	5,085	3.7x	3.2x
RadNet, Inc.RDNT	4,273	2.6x	3.0x
Industry Median		2.4x	2.6x
(*) Revenue		747	740
= Enterprise Value		1,799	2,188
(-) Net Debt		495	495
Equity Value		1,304	1,693
(/) Outstanding shares		32	32
Fair Price		$41	$53

Selected Fair Value (avg of trailing + forward)

$46.82

-59.9%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.13 – $126.88

$21.24

-81.9%

Revenue DCF 10Y

$5.41 – $243.62

$61.50

-47.5%

▸ Trading Multiples

EV/Revenue

$34.37 – $229.35

$46.82

-60.1%

DCF Analysis

iRhythm Technologies, Inc. (IRTC) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$61.50

Market Price

$116.84

Upside / Downside

-47.4%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-4.9%

Target Operating Margin

13.3%

WACC

7.9%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.2%

Target CapEx/Rev

6.0%

D&A/Revenue

2.9%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	876	17.3%	-1.3%	-11	-11	25	(62)	27	-75	-73
2027	1,016	15.9%	2.4%	24	19	29	(71)	20	-42	-37
2028	1,180	16.2%	6.0%	71	56	34	(81)	23	-14	-11
2029	1,375	16.5%	9.7%	133	105	40	(93)	27	25	19
2030	1,695	23.3%	13.3%	226	179	49	(112)	45	71	50
2031	2,034	19.9%	13.3%	271	214	59	(132)	47	94	62
2032	2,371	16.6%	13.3%	316	250	68	(151)	47	120	73
2033	2,683	13.2%	13.3%	358	283	77	(168)	44	149	84
2034	2,945	9.8%	13.3%	393	310	85	(180)	37	178	93
2035	3,133	6.4%	13.3%	418	330	90	(188)	26	206	100

Enterprise Value Bridge

Sum of PV(FCFF)360

Terminal Value (Gordon Growth at 3.0%)4,331

PV of Terminal Value2,103

Enterprise Value2,463

(–) Net Debt495

Equity Value1,968

(÷) Shares Outstanding32

Fair Value per Share$61.50

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
5.9%	$17	$74	$130	$187	$244
6.9%	$5	$46	$87	$128	$169
7.9%	$-2	$30	$62	$93	$125
8.9%	$-6	$19	$45	$70	$96
9.9%	$-9	$12	$33	$54	$75

Current price: $116.84. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 14.0% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$46.82

Market Price

$116.84

Upside / Downside

-59.9%

Verdict

Overvalued

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
iRhythm Technologies, Inc.IRTC	3,739	5.7x	5.7x
Arrowhead Pharmaceuticals, Inc.ARWR	8,559	10.5x	19.1x
BrightSpring Health Services, Inc. Common StockBTSG	8,421	0.9x	0.8x
Glaukos CorporationGKOS	6,777	13.5x	11.1x
Bausch + Lomb CorporationBLCO	5,790	2.1x	2.1x
Bruker CorporationBRKR	5,593	2.1x	2.0x
Chemed CorporationCHE	5,451	2.2x	2.3x
Teleflex IncorporatedTFX	5,085	3.7x	3.2x
RadNet, Inc.RDNT	4,273	2.6x	3.0x
Industry Median		2.4x	2.6x
(*) Revenue		747	740
= Enterprise Value		1,799	2,188
(-) Net Debt		495	495
Equity Value		1,304	1,693
(/) Outstanding shares		32	32
Fair Price		$41	$53

Selected Fair Value (avg of trailing + forward)

$46.82

-59.9%