Masimo (MASI): Evaluating Valuation Following New Evidence of SET Pulse Oximetry Accuracy in Critical Care

Masimo (MASI) has just shared results from an exploratory study showing its SET pulse oximetry performs accurately across all skin tones, even in critically ill adults with low perfusion. The company also reported zero occult hypoxemic events.

See our latest analysis for Masimo.

Masimo’s latest clinical validation adds another win to a year that has seen the stock ride out some volatility. Despite a modest 3.07% share price return over the past week, Masimo’s one-year total shareholder return sits at 6.01%, hinting at momentum, even as the share price remains down year-to-date. Investors seem to be watching both headwinds and improving fundamentals as Masimo navigates product milestones and ongoing company events.

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With shares still below analysts’ price targets and profit forecasts improving, investors are left to wonder if Masimo is undervalued at these levels, or if future gains are already reflected in the current price.

Most Popular Narrative: 19.7% Undervalued

At a closing price of $150.53, the most widely followed narrative currently sees Masimo shares as priced well below a fair value of $187.57, bolstered by expectations around advanced monitoring and operational transformation.

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.

Curious about the profit growth story that’s driving this bullish view? There’s a bold bet on operational upgrades, expanding recurring revenues, and long-term margin targets, plus one future earnings figure that surprises analysts. Want to know the exact assumptions powering this narrative? Find out how they add up and what could sway the outcome.

Result: Fair Value of $187.57 (UNDERVALUED)

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

However, ongoing tariff exposure and shifting hospital contract cycles could easily derail earnings forecasts. This makes the bullish narrative far from guaranteed.

Find out about the key risks to this Masimo narrative.

Another View: Is the Market Already Pricing In Optimism?

Looking through the lens of the price-to-sales ratio, Masimo trades at 3.8 times sales. That is more expensive than the industry average of 2.9 times, and far above the fair ratio of 1.4 times. This gap could signal valuation risk if the market shifts back towards the fair ratio. Are hopes for recurring growth setting the bar too high?

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

Build Your Own Masimo Narrative

If you want to interpret the numbers your own way or dig deeper into the data, you can easily craft your perspective in just a few minutes, and Do it your way.

A great starting point for your Masimo research is our analysis highlighting 2 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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