Is It Time To Reassess AtriCure After Its Recent Share Price Rebound In 2025

• Wondering if AtriCure at around $35 is quietly setting up a value opportunity, or if the market already has it priced just right? You are not alone in asking whether now is the moment to pay closer attention.
• The stock is up 16.2% year to date and 3.8% over the last month, even though it is still slightly down over 1 year and meaningfully lower over 3 and 5 years. This pattern hints at shifting sentiment and fresh expectations.
• Recent headlines have focused on AtriCure's progress in cardiac ablation technologies and surgical devices, reinforcing its position in a specialized, procedure driven niche of the healthcare market. That backdrop helps explain why investors have started to revisit the stock despite its longer term underperformance.
• Even so, AtriCure only scores a 2/6 valuation score, suggesting it screens as undervalued on just a couple of our standard checks. Next we will unpack what different valuation approaches say about the stock and then finish with a more holistic way to think about its real worth.

AtriCure scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: AtriCure Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model projects a company’s future cash flows and then discounts them back to today’s dollars to estimate what the business is worth right now.

For AtriCure, the latest twelve month Free Cash Flow (FCF) is about $11.6 Million, and analysts only provide explicit forecasts out to 2026, where FCF is expected to reach roughly $42 Million. Beyond that, Simply Wall St extrapolates the cash flows using its own assumptions, resulting in a relatively muted long term outlook despite the near term step up.

Using a 2 Stage Free Cash Flow to Equity model, these projected cash flows are discounted back to the present, giving an estimated intrinsic value of about $0.78 per share. Compared with the current share price around $35, the DCF output implies the stock is roughly 4405.7% overvalued. This is an extreme gap and suggests the market is pricing in much stronger or longer lasting growth than this model does.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests AtriCure may be overvalued by 4405.7%. Discover 927 undervalued stocks or create your own screener to find better value opportunities.

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

Approach 2: AtriCure Price vs Sales

For companies that are still working toward consistent profitability, the price to sales multiple is often a better valuation yardstick because it focuses on how the market values each dollar of revenue rather than earnings that can swing with investment cycles and one off items.

In general, faster revenue growth and lower perceived risk justify a higher price to sales ratio, while slower growth or higher uncertainty point to a lower, more conservative multiple. AtriCure currently trades at about 3.39x sales, which is almost identical to the broader Medical Equipment industry average of roughly 3.39x, and below the peer group average of around 4.92x. This suggests it is not priced as aggressively as many direct comparables.

Simply Wall St’s proprietary Fair Ratio for AtriCure comes in at 3.57x. This measure aims to capture what a “normal” multiple should be once you factor in the company’s specific growth profile, profitability, risk characteristics, industry and market cap, making it more tailored than a simple industry or peer comparison. On that basis, AtriCure’s current 3.39x sales looks slightly below the 3.57x Fair Ratio, which points to a modest discount.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1440 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your AtriCure Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simply your story about a company connected directly to the numbers you think are realistic for its future revenue, earnings, margins and fair value.

A Narrative links what you believe about AtriCure’s products, competitive position and risks to a concrete financial forecast, and then to a fair value estimate that you can compare with today’s share price to help you decide whether it looks like a buy, a hold or a sell.

On Simply Wall St’s Community page, millions of investors use Narratives as an easy, guided tool, and the underlying forecasts and fair values update dynamically whenever new information, such as earnings results or major news, becomes available.

For example, one bullish AtriCure Narrative might see fair value closer to $60 based on strong global adoption and margin expansion. In contrast, a more cautious Narrative might anchor nearer $40 due to competitive and regulatory risks. By clearly seeing both stories and their implied fair values side by side, you can decide which better matches your own expectations and risk tolerance.

Do you think there's more to the story for AtriCure? Head over to our Community to see what others are saying!

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com