Globus Medical Valuation

GMED Stock  USD 53.64  0.58  1.09%   
At this time, the firm appears to be fairly valued. Globus Medical retains a regular Real Value of $53.74 per share. The prevalent price of the firm is $53.64. Our model calculates the value of Globus Medical from evaluating the firm fundamentals such as Current Valuation of 7.19 B, return on equity of 0.0421, and Return On Asset of 0.0477 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued assets and exiting overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Price Book
1.7966
Enterprise Value
7.2 B
Enterprise Value Ebitda
20.7323
Price Sales
4.5795
Forward PE
19.7628
Fairly Valued
Today
53.64
Please note that Globus Medical's price fluctuation is very steady at this time. Calculation of the real value of Globus Medical is based on 3 months time horizon. Increasing Globus Medical's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Globus Medical is useful when determining the fair value of the Globus stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Globus Medical. Since Globus Medical is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Globus Stock. However, Globus Medical's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  53.64 Real  53.74 Target  67.25 Hype  53.64 Naive  53.8
The real value of Globus Stock, also known as its intrinsic value, is the underlying worth of Globus Medical Company, which is reflected in its stock price. It is based on Globus Medical's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Globus Medical's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Globus Medical's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
53.74
Real Value
55.29
Upside
Estimating the potential upside or downside of Globus Medical helps investors to forecast how Globus stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Globus Medical more accurately as focusing exclusively on Globus Medical's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.490.570.62
Details
Hype
Prediction
LowEstimatedHigh
52.0953.6455.19
Details
Naive
Forecast
LowNext ValueHigh
52.2553.8055.35
Details
15 Analysts
Consensus
LowTarget PriceHigh
61.2067.2574.65
Details

Globus Medical Investments

(82.04 Million)

Globus Medical Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Globus Medical's current stock value. Our valuation model uses many indicators to compare Globus Medical value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Globus Medical competition to find correlations between indicators driving Globus Medical's intrinsic value. More Info.
Globus Medical is rated # 4 in beta category among related companies. It is rated # 3 in price to sales category among related companies fabricating about  4.21  of Price To Sales per Beta. The current year's Price To Sales Ratio is expected to grow to 4.16. Comparative valuation analysis is a catch-all model that can be used if you cannot value Globus Medical by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Globus Medical's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Globus Medical's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Globus Medical's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Globus Medical and how it compares across the competition.

About Globus Medical Valuation

The stock valuation mechanism determines the current worth of Globus Medical on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Globus Medical. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Globus Medical based exclusively on its fundamental and basic technical indicators. By analyzing Globus Medical's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Globus Medical's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Globus Medical. We calculate exposure to Globus Medical's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Globus Medical's related companies.
Last ReportedProjected for 2024
Gross ProfitB533.4 M
Pretax Profit Margin 0.11  0.10 
Operating Profit Margin 0.08  0.08 
Net Profit Margin 0.08  0.07 
Gross Profit Margin 0.65  0.85 

Globus Medical Quarterly Retained Earnings

1.14 Billion

8 Steps to conduct Globus Medical's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Globus Medical's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Globus Medical's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Globus Medical's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Globus Medical's revenue streams: Identify Globus Medical's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Globus Medical's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Globus Medical's growth potential: Evaluate Globus Medical's management, business model, and growth potential.
  • Determine Globus Medical's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Globus Medical's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.

Globus Medical Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Globus Medical does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding114.6 M
Quarterly Earnings Growth Y O Y-0.788
Forward Price Earnings19.7628

Globus Medical Current Valuation Indicators

Valuation refers to the process of determining the present value of Globus Medical and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Globus we look at many different elements of the entity such as Globus's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Globus Medical's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Globus Medical's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Globus Medical, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Globus Medical's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Globus Medical's worth.
When determining whether Globus Medical is a strong investment it is important to analyze Globus Medical's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Globus Medical's future performance. For an informed investment choice regarding Globus Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Globus Medical. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
For information on how to trade Globus Stock refer to our How to Trade Globus Stock guide.
Note that the Globus Medical information on this page should be used as a complementary analysis to other Globus Medical's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Complementary Tools for Globus Stock analysis

When running Globus Medical's price analysis, check to measure Globus Medical's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Globus Medical is operating at the current time. Most of Globus Medical's value examination focuses on studying past and present price action to predict the probability of Globus Medical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Globus Medical's price. Additionally, you may evaluate how the addition of Globus Medical to your portfolios can decrease your overall portfolio volatility.
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Is Globus Medical's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Globus Medical. If investors know Globus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Globus Medical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.79)
Earnings Share
1.07
Revenue Per Share
13.87
Quarterly Revenue Growth
1.246
Return On Assets
0.0477
The market value of Globus Medical is measured differently than its book value, which is the value of Globus that is recorded on the company's balance sheet. Investors also form their own opinion of Globus Medical's value that differs from its market value or its book value, called intrinsic value, which is Globus Medical's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Globus Medical's market value can be influenced by many factors that don't directly affect Globus Medical's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Globus Medical's value and its price as these two are different measures arrived at by different means. Investors typically determine if Globus Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Globus Medical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.