Establishment Labs Holdings Inc.

NasdaqCM:ESTA Stock Report

Market Cap: US$1.2b

Establishment Labs Holdings Valuation

Is ESTA 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ESTA ($42.61) is trading below our estimate of fair value ($54.64)

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

Key Valuation Metric

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

Key metric: As ESTA is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ESTA. This is calculated by dividing ESTA's market cap by their current revenue.
What is ESTA's PS Ratio?
PS Ratio7.8x
SalesUS$153.07m
Market CapUS$1.17b

Price to Sales Ratio vs Peers

How does ESTA's PS Ratio compare to its peers?

The above table shows the PS ratio for ESTA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.8x
BVS Bioventus
1.4x6.4%US$745.8m
STAA STAAR Surgical
3.8x13.5%US$1.3b
EMBC Embecta
0.7x1.3%US$785.3m
AVNS Avanos Medical
1.1x4.6%US$771.3m
ESTA Establishment Labs Holdings
7.8x23.6%US$1.2b

Price-To-Sales vs Peers: ESTA is expensive based on its Price-To-Sales Ratio (7.8x) compared to the peer average (1.8x).

Price to Sales Ratio vs Industry

How does ESTA's PS Ratio compare vs other companies in the US Medical Equipment Industry?

51 CompaniesPrice / SalesEstimated GrowthMarket Cap
INGN Inogen
0.7x4.2%US$225.32m
ARAY Accuray
0.4x5.5%US$184.03m
NVRO Nevro
0.4x2.5%US$158.50m
KEQU Kewaunee Scientific
0.6xn/aUS$118.20m
ESTA 7.8xIndustry Avg. 3.2xNo. of Companies51PS02.85.68.411.214+
51 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ESTA is expensive based on its Price-To-Sales Ratio (7.8x) compared to the US Medical Equipment industry average (3.2x).

Price to Sales Ratio vs Fair Ratio

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

ESTA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.8x
Fair PS Ratio4.6x

Price-To-Sales vs Fair Ratio: ESTA is expensive based on its Price-To-Sales Ratio (7.8x) compared to the estimated Fair Price-To-Sales Ratio (4.6x).

Analyst Price Targets

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

The above table shows the analyst ESTA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$42.61
US$60.29
+41.5%
15.3%US$75.00US$46.00n/a7
Nov ’25US$45.42
US$62.83
+38.3%
15.2%US$75.00US$50.00n/a6
Oct ’25US$40.56
US$62.33
+53.7%
15.3%US$75.00US$50.00n/a6
Sep ’25US$45.82
US$60.43
+31.9%
16.0%US$75.00US$45.00n/a7
Aug ’25US$42.51
US$64.43
+51.6%
11.5%US$75.00US$50.00n/a7
Jul ’25US$43.34
US$65.14
+50.3%
7.3%US$75.00US$60.00n/a7
Jun ’25US$52.23
US$63.00
+20.6%
4.5%US$68.00US$60.00n/a7
May ’25US$50.61
US$59.29
+17.1%
9.0%US$65.00US$50.00n/a7
Apr ’25US$48.80
US$56.43
+15.6%
11.2%US$65.00US$49.00n/a7
Mar ’25US$44.11
US$52.86
+19.8%
9.8%US$65.00US$49.00n/a7
Feb ’25US$38.02
US$46.14
+21.4%
22.2%US$65.00US$32.00n/a7
Jan ’25US$25.89
US$46.14
+78.2%
22.2%US$65.00US$32.00n/a7
Dec ’24US$25.73
US$46.14
+79.3%
22.2%US$65.00US$32.00n/a7
Nov ’24US$31.55
US$81.25
+157.5%
11.2%US$95.00US$66.00US$45.428
Oct ’24US$49.07
US$96.88
+97.4%
16.9%US$125.00US$75.00US$40.568
Sep ’24US$59.50
US$96.88
+62.8%
16.9%US$125.00US$75.00US$45.828
Aug ’24US$70.33
US$100.71
+43.2%
14.3%US$125.00US$79.00US$42.517
Jul ’24US$68.61
US$100.71
+46.8%
14.3%US$125.00US$79.00US$43.347
Jun ’24US$64.45
US$104.33
+61.9%
11.8%US$125.00US$89.00US$52.236
May ’24US$71.28
US$104.83
+47.1%
11.2%US$125.00US$90.00US$50.616
Apr ’24US$67.74
US$101.00
+49.1%
12.2%US$125.00US$89.00US$48.806
Mar ’24US$72.95
US$101.00
+38.5%
12.2%US$125.00US$89.00US$44.116
Feb ’24US$68.52
US$100.67
+46.9%
12.6%US$125.00US$87.00US$38.026
Jan ’24US$65.65
US$91.43
+39.3%
22.1%US$125.00US$61.00US$25.897
Dec ’23US$67.57
US$91.86
+35.9%
21.9%US$125.00US$61.00US$25.737
Nov ’23US$56.87
US$92.43
+62.5%
20.8%US$125.00US$65.00US$31.557

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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