Masimo (MASI): Evaluating Current Valuation After Recent Share Price Fluctuations

Masimo (MASI) shares have shown some movement lately, catching the eye of investors interested in how the stock’s performance lines up with broader healthcare trends. Many are watching to see how recent results might impact its valuation.

See our latest analysis for Masimo.

Masimo’s share price has been a bit choppy this year, slipping 13.61% year-to-date, with a recent dip to $145.62. The one-year total shareholder return is down 18.05%. This reinforces that momentum remains weak over both short and long timeframes despite ongoing interest in the sector.

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With the stock still well below its average analyst price target, investors are left wondering whether Masimo is trading at a genuine discount or if the current price already reflects all the company’s future prospects.

Most Popular Narrative: 20.5% Undervalued

With Masimo’s estimated fair value set at $183.13, which is well above the last close of $145.62, analysts are betting on a substantial upside if narrative assumptions hold true. The current spread highlights how optimism around partnerships and operational improvements is shaping expectations.

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.

Read the complete narrative.

Want to know the growth blueprint behind this high valuation? The secret sauce: an ambitious drive for market share and fresh leadership. Interested in how this narrative bets on rising profit margins and industry-beating expansion? Click through to see which big assumptions could unlock the next level for Masimo.

Result: Fair Value of $183.13 (UNDERVALUED)

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

However, uncertainty remains if global tariffs or slower recovery in core hospital markets affect Masimo’s ability to deliver the expected turnaround.

Find out about the key risks to this Masimo narrative.

Another View: Market Ratios Signal a Premium

Looking at market ratios for Masimo paints a different picture. The company's price-to-sales sits at 3.6 times, which is higher than both the US Medical Equipment industry average of 3 times and above its fair ratio of 1.4 times. This suggests the market is pricing in a lot of future growth, adding valuation risk even as peer comparisons look more expensive. Is this premium justified, or might the share price need to adjust?

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

Build Your Own Masimo Narrative

If you want to dig into the numbers yourself and see the story from a different angle, shaping your own take on Masimo takes just a few minutes. Do it your way

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

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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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