DexCom Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Discounted Cash Flow
Simply Wall St
Mex$2.25k
Fair Value
20.5% undervalued intrinsic discount
23
Number of Analysts

Below Fair Value: DXCM * (MX$1788.7) is trading below our estimate of fair value (MX$2250.57)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DXCM *?

Key metric: As DXCM * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DXCM *. This is calculated by dividing DXCM *'s market cap by their current earnings.
What is DXCM *'s PE Ratio?
PE Ratio46.3x
EarningsUS$576.20m
Market CapUS$26.69b

Price to Earnings Ratio vs Peers

How does DXCM *'s PE Ratio compare to its peers?

The above table shows the PE ratio for DXCM * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average29.5x
4543 Terumo
32.7x11.3%JP¥4.1t
RMD ResMed
26.1x9.8%US$32.8b
STE STERIS
36x11.3%US$22.3b
300760 Shenzhen Mindray Bio-Medical Electronics
23.1x12.8%CN¥286.2b
DXCM * DexCom
46.3x19.1%Mex$26.7b

Price-To-Earnings vs Peers: DXCM * is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the peer average (29.5x).


Price to Earnings Ratio vs Industry

How does DXCM *'s PE Ratio compare vs other companies in the Global Medical Equipment Industry?

11 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies52PE020406080100+
11 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DXCM * is expensive based on its Price-To-Earnings Ratio (46.3x) compared to the Global Medical Equipment industry average (26.3x).


Price to Earnings Ratio vs Fair Ratio

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

DXCM * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate DXCM *'s Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

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

Analyst Price Target
Consensus Narrative from 23 Analysts
Mex$2.67k
Fair Value
32.9% undervalued intrinsic discount
23
Number of Analysts

Analyst Forecast: Insufficient data to show price forecast.


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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/04/01 01:37
End of Day Share Price 2025/02/14 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

DexCom, Inc. is covered by 60 analysts. 24 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
James Francis MainwaringAtlantic Equities LLP
Anand VankawalaAvondale Partners
Jeffrey JohnsonBaird