Examining DiaSorin’s Share Price After Diagnostic Demand Slowdown in 2025

If you've been scanning your portfolio and wondering whether DiaSorin deserves a spot—or maybe a second chance—you are definitely not alone. The last couple of years have been a wild ride for this medical diagnostics specialist, with shares landing at €79.14 after a series of sharp moves. The numbers do stand out: down 3.9% over the past week, off 5.8% this month, and showing a year-to-date slide of 21.3%. Zoom out, and the trend deepens. DiaSorin is off 22.9% in the last year and has declined by an eye-opening 50.3% across five years.

But numbers only tell part of the story. Recent shifts in the diagnostics market, including changes in testing demand and investor sentiment toward health tech, have played into the mix. Some of these developments have sparked questions about DiaSorin's growth potential, while others suggest risk perceptions are being recalibrated.

So, what does all this mean for the stock’s valuation? When we stack DiaSorin up against six classic checks to spot an undervalued company, it scores a 4, placing it solidly in the camp of being undervalued by several key metrics. Curious how these valuation tests shed light on the opportunity or risk here? Let’s break down how each method applies, and later, I’ll share a smarter way to pull it all together as you weigh your next move.

Why DiaSorin is lagging behind its peers

Approach 1: DiaSorin Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company’s value by projecting its future cash flows and discounting them back to today’s value. This approach offers a clear look at what DiaSorin might be worth if current financial trends continue.

DiaSorin’s latest twelve-month Free Cash Flow stands at €230.16 million. Analysts forecast this will grow steadily, with €291.64 million projected for 2027. Simply Wall St extends these estimates out over the next decade, with annual cash flows anticipated to rise to over €426 million by 2035, showing consistent, moderate growth.

According to this DCF projection, DiaSorin’s intrinsic value is €77.14 per share. With shares currently trading at €79.14, the model suggests the stock is around 2.6% overvalued. This small gap means the market price and the estimated intrinsic value are very close.

Result: ABOUT RIGHT

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for DiaSorin.

Simply Wall St performs a valuation analysis on every stock in the world every day (check out DiaSorin's valuation analysis). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes.

Approach 2: DiaSorin Price vs Earnings

For companies with consistent profitability, the Price-to-Earnings (PE) ratio is a widely respected valuation yardstick. It tells investors how much they are paying for each euro of earnings, making it particularly relevant for evaluating mature businesses like DiaSorin.

What constitutes a “normal” PE ratio depends on expected growth and perceived risk. Higher growth or less risk typically warrants a higher PE, while slower-growing or riskier companies warrant a lower one. With that in mind, DiaSorin currently trades at a PE of 22.3x, which is noticeably below the medical equipment industry average of 28.4x and also beneath the peer group average of 27.8x.

However, comparing multiples to the industry or peers only tells part of the story. Simply Wall St’s “Fair Ratio” incorporates a deeper mix of factors including the company's own growth outlook, profit margins, risk exposure, and even its market cap, instead of a simplistic apples-to-apples approach. For DiaSorin, the Fair PE Ratio is calculated at 23.7x, suggesting a slightly higher justified valuation than its current trading multiple.

Lining these up side by side, DiaSorin’s actual PE (22.3x) sits just a little below its Fair Ratio (23.7x), a difference that is modest and signals that today's price is well aligned with what fundamentals warrant.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your DiaSorin Narrative

Earlier, we mentioned that there is an even better way to understand valuation. Let’s introduce you to Narratives, a smarter and more dynamic approach to making investment decisions that goes beyond static ratios and models.

A Narrative is your investment story. It combines your perspective on DiaSorin’s future revenue growth, margins, and fair value, connecting the company’s underlying story with real financial forecasts and a clear estimate of what the stock is worth today.

This tool is designed to be accessible and easy to use, available right now to millions of investors on Simply Wall St’s Community page. It enables anyone to build, update, and share their outlook without the need for spreadsheets.

Narratives help you decide when to buy or sell by aligning your forecasted Fair Value with the current Price, making your reasoning transparent and grounded in both the company’s story and the latest data.

Because Narratives are updated dynamically as new earnings or news emerge, your fair value estimates always reflect the latest facts, not just past assumptions.

For example, one investor might forecast rapid growth and see DiaSorin as worth €122 per share due to new diagnostics in North America. A more cautious investor might set a value as low as €75.4 if they focus on margin risks and increased competition.

Do you think there's more to the story for DiaSorin? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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