Update shared on 11 Dec 2025
Fair value Decreased 0.49%Analysts have trimmed their price target on Smith & Nephew slightly to reflect a modest recalibration of fair value, revenue growth and margin assumptions, while also factoring in a marginally higher future price to earnings multiple. This results in a small decrease in estimated equity value from approximately $14.50 to $14.43 per share.
What's in the News
- Reaffirmed 2025 guidance with trading profit margin expected to expand to between 19.0% and 20.0%, up from 18.1% in 2024, despite an anticipated net tariff impact of $15 million to $20 million (company guidance)
- Issued updated 2025 guidance calling for underlying revenue growth of around 5% and at least a 19.5% trading profit margin, with 2026 revenue growth expected to accelerate to around 6% and profit growth outpacing revenue (Capital Markets Day 2025)
- Signaled appetite for strategically focused M&A, highlighting strong free cash flow generation and targeting high growth, high return MedTech assets in areas of existing strength, such as Sports Medicine and Wound Management (Capital Markets Day 2025)
- Reported first-of-its-kind real-world study showing PICO single-use negative pressure wound therapy significantly reduced wound dehiscence, length of stay and costs versus a competing device in more than 22,000 orthopedic and cardiovascular surgery patients (product study announcement)
- Partner Sectra expanded its 3D pre-operative planning solution with Smith+Nephew orthopedic trauma templates, supporting broader adoption of digital planning and more efficient, patient-specific treatments (client announcement)
Valuation Changes
- Fair Value per Share has edged down slightly from $14.50 to about $14.43, reflecting a modest reduction in intrinsic value estimates.
- Discount Rate has decreased marginally from about 8.53% to roughly 8.50%, implying a slightly lower required return on equity.
- Revenue Growth has been trimmed slightly from around 5.40% to approximately 5.35% per year, indicating a modestly more conservative top line outlook.
- Net Profit Margin has been reduced slightly from about 13.22% to roughly 13.12%, incorporating expectations for a marginally lower long term profitability profile.
- Future P/E has risen modestly from around 23.4x to approximately 23.7x, suggesting a slightly higher valuation multiple applied to forward earnings.
Have other thoughts on Smith & Nephew?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.