Establishment Labs Holdings (ESTA): Evaluating Valuation After Raised 2025 Guidance and Improved Q3 Results

Establishment Labs Holdings (ESTA) is catching investor attention after reporting strong third quarter sales growth and a smaller net loss compared to last year. In addition, the company has raised its revenue outlook for 2025.

See our latest analysis for Establishment Labs Holdings.

On the heels of raising its 2025 revenue forecast and logging stronger sales, Establishment Labs Holdings has enjoyed a 45.8% surge in its one-month share price return. The total shareholder return over the last year stands at an impressive 72.6%. Momentum seems to be building, with recent gains reflecting renewed optimism toward growth and execution.

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With such an impressive run and improved outlook, the key question now becomes whether Establishment Labs Holdings is still trading at an attractive value, or if the current price already reflects all its future growth potential.

Most Popular Narrative: 4.1% Overvalued

Establishment Labs Holdings recently closed at $64.75, sitting just above the most widely followed narrative’s fair value estimate of $62.22. This sets up a debate surrounding whether recent upgrades to guidance justify a premium, or if market enthusiasm has gotten ahead of fundamentals.

Ongoing international expansion, with significant momentum in direct European and Latin American markets and a strategy to replicate regional leadership (including in China as economic and demographic trends improve), supports diversified and long-term top-line growth while reducing geographic risk. Improving operational leverage, via stable operating expenses, moderation in cash use, and anticipated EBITDA and cash flow breakeven milestones, points toward expanding net margins and earnings scalability as revenues continue to rise.

Read the complete narrative.

Want to see what drives this premium price? The narrative’s key assumptions hint at huge gains in new markets, future profits, and margin expansion. The real forecast behind this valuation will surprise you. Find out what numbers underlie today’s bold outlook.

Result: Fair Value of $62.22 (OVERVALUED)

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

However, ongoing high expenses and the challenge of scaling in key international markets remain potential hurdles that could test this optimistic outlook.

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

Build Your Own Establishment Labs Holdings Narrative

If you think there’s another story to tell, or you want to dig deeper into the data for yourself, crafting your own perspective is fast and simple. You can do it in under three 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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