A Look at LivaNova's Valuation After CMS Lifts Medicare Payments for VNS Therapy

LivaNova (LIVN) just received a significant boost after the U.S. Centers for Medicare & Medicaid Services announced higher outpatient payment rates for its VNS Therapy device. This change is expected to make access much easier for hospitals and patients alike.

See our latest analysis for LivaNova.

The Medicare reimbursement boost comes on the heels of a stellar third quarter for LivaNova, with the share price surging 29.6% year-to-date as optimism spreads about the company’s momentum and long-term growth prospects. Recent catalysts, including strong operating results and ambitious 2030 targets, have added to the growing confidence in its outlook. The one-year total shareholder return of 16.8% reflects that gains are being sustained beyond just the short-term spike.

If today’s leap and LivaNova’s momentum have you curious, you might spot even more opportunity by exploring See the full list for free.

With the stock rallying on positive reimbursement news and robust earnings, the question now is whether LivaNova remains undervalued or if investors have already factored these future growth prospects into the current share price.

Most Popular Narrative: 12.4% Undervalued

LivaNova’s fair value is pegged at $69 by the market’s most popular narrative, which places it above the last close of $60.46. This valuation is anchored in rapidly improving business fundamentals and a confident outlook, setting high expectations for what comes next.

The company's clinical innovations, including strong, durable VNS study data in epilepsy and depression, launch of disruptive next-generation OSA neurostimulation (p-HGNS), and continued product upgrades such as the Essenz platform's software upgradability, position LivaNova to capture share from the long-term shift toward minimally invasive, personalized therapies. This shift can drive pricing power and higher net margins.

Read the complete narrative.

Want to see the bold math behind this high valuation? The narrative hinges on a powerful combination: a major profit turnaround, soaring recurring revenues, and a future price multiple usually reserved for established giants. Wonder which future leaps are fueling the optimism? Only the full narrative breaks down the numbers that drive this enticing fair value.

Result: Fair Value of $69 (UNDERVALUED)

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

However, ongoing global healthcare cost pressures or delays in regulatory approvals could limit LivaNova's growth and present challenges for its compelling valuation narrative.

Find out about the key risks to this LivaNova narrative.

Build Your Own LivaNova Narrative

If you have a different take on LivaNova’s future or enjoy diving into the numbers yourself, building your own outlook only takes a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding LivaNova.

Looking for More Investment Ideas?

Seize your advantage and keep your portfolio moving forward by acting on opportunities many investors overlook. Let Simply Wall Street’s screeners point you to your next smart move:

• Capture the potential for impressive gains by targeting value opportunities with strong fundamentals and track records through these 924 undervalued stocks based on cash flows.
• Secure a steady stream of income and watch your returns grow by finding your next winner among these 15 dividend stocks with yields > 3%.
• Position yourself at the forefront of technology's next wave by tracking quantum breakthroughs and emerging industry innovators via these 26 quantum computing stocks.

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