Update shared on19 Sep 2025
Fair value Increased 1.81%The significant drop in Smith & Nephew’s future P/E ratio suggests improving earnings expectations or a lower valuation premium, which supports the slight increase in the consensus analyst price target from £13.61 to £13.85.
What's in the News
- AAOS guidelines now strongly recommend Smith & Nephew's REGENETEN Bioinductive Implant for rotator cuff repair, citing significantly lower re-tear rates and improved patient outcomes; new US indication covers extra-articular ligament injuries, expanding the addressable market.
- Launched CENTRIO Platelet-Rich-Plasma (PRP) System for chronic wound management in the US under exclusive distribution with Nuo Therapeutics; system demonstrated efficacy in two RCTs and fits within CMS coverage for diabetic patients.
- Announced release of Q-FIX KNOTLESS All-Suture Anchor, offering best-in-class fixation strength and new suture options for soft tissue-to-bone repair across multiple joints.
- Introduced TRIGEN MAX Tibia Nailing System, the only product offering side-specific nails for tibia fractures, streamlining operative workflow and improving fixation outcomes; US-only availability at launch.
- Commenced share repurchase program for up to 10% of share capital, approved dividend of 15.0 US cents per share, and reaffirmed full-year 2025 guidance for ~5% underlying revenue growth and trading profit margin expansion to 19–20%.
Valuation Changes
Summary of Valuation Changes for Smith & Nephew
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £13.61 to £13.85.
- The Future P/E for Smith & Nephew has significantly fallen from 21.96x to 16.66x.
- The Discount Rate for Smith & Nephew remained effectively unchanged, moving only marginally from 8.12% to 8.01%.
Disclaimer
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