iRhythm Technologies, Inc.

LSE:0A7L Stock Report

Market Cap: US$2.8b

iRhythm Technologies Valuation

Is 0A7L undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0A7L when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A7L ($89.74) is trading below our estimate of fair value ($122.86)

Significantly Below Fair Value: 0A7L is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A7L?

Key metric: As 0A7L is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0A7L. This is calculated by dividing 0A7L's market cap by their current revenue.
What is 0A7L's PS Ratio?
PS Ratio5x
SalesUS$560.03m
Market CapUS$2.82b

Price to Sales Ratio vs Peers

How does 0A7L's PS Ratio compare to its peers?

The above table shows the PS ratio for 0A7L vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.3x
SN. Smith & Nephew
1.9x4.9%UK£8.7b
NIOX NIOX Group
6.3x12.1%UK£246.7m
CREO Creo Medical Group
2.7x1.3%UK£80.4m
EKF EKF Diagnostics Holdings
2.4x7.6%UK£123.4m
0A7L iRhythm Technologies
5x15.1%US$2.8b

Price-To-Sales vs Peers: 0A7L is expensive based on its Price-To-Sales Ratio (5x) compared to the peer average (3.3x).

Price to Sales Ratio vs Industry

How does 0A7L's PS Ratio compare vs other companies in the GB Medical Equipment Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
SPEC INSPECS Group
0.2x4.0%US$55.36m
YGEN Yourgene Health
0.6xn/aUS$20.48m
IHC Inspiration Healthcare Group
0.3x13.6%US$13.87m
SUN Surgical Innovations Group
0.4xn/aUS$6.93m
No more companies available in this PS range
0A7L 5.0xIndustry Avg. 2.6xNo. of Companies4PS02.44.87.29.612+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0A7L is expensive based on its Price-To-Sales Ratio (5x) compared to the UK Medical Equipment industry average (2.6x).

Price to Sales Ratio vs Fair Ratio

What is 0A7L's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0A7L PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5x
Fair PS Ratio5.2x

Price-To-Sales vs Fair Ratio: 0A7L is good value based on its Price-To-Sales Ratio (5x) compared to the estimated Fair Price-To-Sales Ratio (5.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0A7L forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$89.74
US$105.58
+17.7%
15.7%US$152.00US$86.00n/a12
Dec ’25US$86.23
US$98.27
+14.0%
14.4%US$125.00US$79.00n/a11
Nov ’25US$77.00
US$98.27
+27.6%
14.4%US$125.00US$79.00n/a11
Oct ’25US$70.48
US$119.80
+70.0%
10.5%US$145.00US$100.00n/a10
Sep ’25US$72.00
US$117.55
+63.3%
9.3%US$145.00US$100.00n/a11
Aug ’25US$84.87
US$132.64
+56.3%
9.3%US$165.00US$115.00n/a11
Jul ’25US$108.03
US$135.45
+25.4%
8.9%US$165.00US$115.00n/a11
Jun ’25US$88.25
US$137.50
+55.8%
7.7%US$165.00US$122.00n/a10
May ’25US$109.24
US$138.50
+26.8%
6.8%US$165.00US$132.00n/a10
Apr ’25US$117.22
US$138.50
+18.2%
6.8%US$165.00US$132.00n/a10
Mar ’25US$120.87
US$138.50
+14.6%
6.8%US$165.00US$132.00n/a10
Feb ’25US$123.37
US$130.70
+5.9%
11.1%US$165.00US$110.00n/a10
Jan ’25US$107.38
US$126.70
+18.0%
11.8%US$165.00US$108.00US$88.7210
Dec ’24US$88.81
US$113.30
+27.6%
20.4%US$165.00US$85.00US$86.2310
Nov ’24US$78.52
US$129.30
+64.7%
17.4%US$165.00US$100.00US$77.0010
Oct ’24US$96.18
US$138.60
+44.1%
11.1%US$165.00US$115.00US$70.4810
Sep ’24US$107.30
US$138.60
+29.2%
11.1%US$165.00US$115.00US$72.0010
Aug ’24US$102.88
US$141.80
+37.8%
9.2%US$155.00US$115.00US$84.8710
Jul ’24US$99.57
US$143.11
+43.7%
9.2%US$155.00US$115.00US$108.039
Jun ’24US$114.26
US$152.67
+33.6%
5.7%US$166.00US$135.00US$88.259
May ’24n/a
US$147.33
0%
9.5%US$170.00US$130.00US$109.249
Apr ’24US$124.02
US$142.33
+14.8%
11.9%US$168.00US$110.00US$117.229
Mar ’24US$116.39
US$142.33
+22.3%
11.9%US$168.00US$110.00US$120.879
Feb ’24n/a
US$145.13
0%
13.2%US$168.00US$110.00US$123.378
Jan ’24US$94.88
US$149.75
+57.8%
12.6%US$168.00US$110.00US$107.388

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 05:46
End of Day Share Price 2025/01/02 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

iRhythm Technologies, Inc. is covered by 21 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael PolarkBaird
David RescottBaird
Joanne WuenschBMO Capital Markets Equity Research