Establishment Labs (ESTA): Evaluating Valuation After Recent 33% Share Price Surge

Establishment Labs Holdings (ESTA) has caught some renewed interest after a strong performance in the past month, with shares up over 33%. Investors are taking a fresh look at the company’s recent momentum and underlying fundamentals.

See our latest analysis for Establishment Labs Holdings.

Establishment Labs’ 33% jump in the last month puts a spotlight on building momentum, especially following a quieter stretch earlier this year. While recent events have not made big headlines, the 1-year total shareholder return of 55% is a clear sign that long-term investors have already been rewarded.

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With shares now trading close to analyst targets and strong gains in recent months, the key question is whether Establishment Labs is still undervalued or if the market has already accounted for its growth. The main consideration is whether there is genuine upside left.

Most Popular Narrative: 6.2% Overvalued

Compared to Establishment Labs Holdings' last close at $66.05, the most popular narrative pegs fair value at $62.22, a bit below the current market price. This signals that, in the eyes of analysts, recent gains might have run ahead of the key financial drivers.

"Bullish analysts have significantly increased their price targets, reflecting confidence in the company’s ability to deliver sustained growth and outperform previous expectations. Stronger than expected Q3 financial performance, including the first quarter of positive EBITDA, has reinforced views of improving operational execution and profitability."

Read the complete narrative.

Want to know why the model puts a premium on these shares? The narrative is built around record operational milestones and a ramp in future profit growth that rivals some of the sector's biggest disruptors. Which forecasting levers tipped the scale? Read on to find out.

Result: Fair Value of $62.22 (OVERVALUED)

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

However, persistent high expenses and slower international growth could quickly challenge the optimistic outlook for Establishment Labs Holdings.

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

Build Your Own Establishment Labs Holdings Narrative

If you see the story differently, or want to uncover your own perspective from the numbers, you can build your own narrative in just a few minutes. Start now with 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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