Masimo (MASI): Assessing Valuation Amid Recent Performance Signals

Masimo (MASI) shares have edged up over the past month, gaining about 6%. Investors seem to be weighing the company’s recent performance metrics, with attention on improving year-over-year returns despite some longer-term volatility.

See our latest analysis for Masimo.

This latest move fits into a year of mixed signals for Masimo, with momentum showing tentative signs of recovery. The 1-year total shareholder return managed a modest gain, but multi-year returns have lagged. This points to a market still weighing the company’s long-term growth prospects against intermittent periods of volatility.

If Masimo’s shifting performance has you curious about other opportunities in the healthcare space, why not check out See the full list for free.

With shares trading below analyst price targets and recent financials showing both risks and resilience, the question arises: does Masimo now offer a genuine buying opportunity, or has the market already factored in any future upside?

Most Popular Narrative: 22.1% Undervalued

With a last close of $146.05 versus the most widely cited fair value of $187.57, Masimo is positioned as a potential value candidate according to the prevailing narrative. This presents a notable disconnect between current market sentiment and what analysts see as possible upside.

The expansion of dedicated specialty sales teams and realignment of the commercial structure is expected to drive increased market share in high-growth categories like capnography, brain monitoring, and hemodynamics, where current share is below 20%. This should accelerate top-line revenue growth and elevate long-term earnings. Ongoing innovation, including next-generation monitors featuring advanced AI algorithms and redeployment of novel sensor technologies, positions Masimo to command premium pricing and capture greater value as hospitals prioritize technologically advanced, multiparameter solutions. This supports both revenue expansion and improved gross margins.

Read the complete narrative.

Want to see what’s fueling that bold valuation gap? The narrative’s key driver is a dramatic turnaround powered by next-generation innovation and a leap in recurring earnings. Curious about the specific numbers and bullish assumptions that underpin this target? The details might just change your view of Masimo’s future.

Result: Fair Value of $187.57 (UNDERVALUED)

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

However, persistent global tariffs and cautious hospital capital spending could limit Masimo’s ability to achieve the projected turnaround and earnings growth.

Find out about the key risks to this Masimo narrative.

Another View: Looking Beyond Analyst Price Targets

While analyst forecasts suggest Masimo's shares are undervalued, a look at the price-to-sales ratio reveals a more cautious story. Masimo trades at 3.7 times sales, which is notably higher than both its fair ratio of 1.4 and the industry average of 2.8. This valuation gap hints at premium expectations built into the stock. This raises the question: could the share price adjust lower if growth lags?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Masimo Narrative

If you'd rather investigate the data yourself or feel that a different perspective is warranted, you can craft your own Masimo narrative in just a few minutes. Do it your way

A great starting point for your Masimo research is our analysis highlighting 3 key rewards 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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