Assessing the Valuation of Establishment Labs Holdings (ESTA) Following Strong Q3 Sales Growth and Narrower Net Loss

Establishment Labs Holdings (ESTA) just released its third quarter earnings, highlighting a jump in sales and a smaller net loss compared to last year. Investors are watching closely because these results reflect improving operational trends.

See our latest analysis for Establishment Labs Holdings.

Wednesday’s upbeat earnings are just the latest sign of momentum for Establishment Labs Holdings. This comes after a robust 53.9% 1-month share price return and a 23.97% total shareholder return over the past year, as investors welcome signs of sustained improvement.

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With shares surging over the past month and earnings momentum building, the key question for investors now is whether Establishment Labs Holdings remains undervalued or if the market is already factoring in future growth, which could leave little room for upside.

Most Popular Narrative: 9.1% Overvalued

With Establishment Labs Holdings closing at $60.51 and the most widely followed narrative assigning a fair value of $55.44, the current price sits above consensus expectations. This stage is set by robust growth projections and enthusiastic adoption trends, leading to a premium compared to narrative fair value.

Accelerating surgeon adoption and utilization curve in the U.S., combined with further account additions and growing patient demand (amplified by patient-driven requests and social media engagement), positions the company for continued strong revenue growth and sustainable market share gains in a large, culturally receptive, and increasingly affluent market.

Read the complete narrative.

Want to know why expectations are so high? The underlying narrative banks on relentless adoption, premium procedures, and ambitions for margin growth usually reserved for industry giants. Uncover the key financial leaps these projections rely on, including bold profitability milestones and market expansion bets. Get the full story to see what assumptions are driving this price call.

Result: Fair Value of $55.44 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing high expenses and stiff competition could slow momentum. This may make it difficult for Establishment Labs Holdings to sustain its impressive growth pace.

Find out about the key risks to this Establishment Labs Holdings narrative.

Build Your Own Establishment Labs Holdings Narrative

If the consensus view does not quite align with your own or you would rather dive into the numbers yourself, you can quickly shape your own perspective on Establishment Labs Holdings in just a few minutes, Do it your way

A great starting point for your Establishment Labs Holdings research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

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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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