Masimo (MASI): Reassessing Valuation After a Steady Slide in Share Price

Masimo (MASI) has been drifting lower recently, and that slide is catching investors attention as they reassess what the current price implies about the company future earnings power and competitive position.

See our latest analysis for Masimo.

The latest dip comes on top of a much steeper slide, with the share price down around 20 percent year to date and the one year total shareholder return similarly weak. This signals that momentum has clearly been fading as investors reassess growth and risk.

If Masimo recent pullback has you rethinking your sector exposure, this could be a good moment to explore other healthcare stocks that might offer a different balance of growth and resilience.

With the share price lagging and analysts still seeing upside to their targets, the key question now is whether Masimo is quietly undervalued or if the market is already discounting any meaningful recovery in growth.

Most Popular Narrative Narrative: 26.8% Undervalued

Compared to Masimo last close at $134.04, the most widely followed narrative pegs fair value much higher, implying sizable upside if its assumptions play out.

Ongoing innovation including next-gen 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, supporting both revenue expansion and improved gross margins.

Read the complete narrative.

Curious how falling headline revenues can still line up with a higher valuation. The story hinges on a sharp margin reset and a rich future earnings multiple. Want to see how those moving parts combine into that fair value call.

Result: Fair Value of $183.13 (UNDERVALUED)

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

However, that upbeat narrative could unravel if tariffs escalate or hospital capital budgets stay tight, delaying equipment upgrades and pressuring Masimo revenue trajectory.

Find out about the key risks to this Masimo narrative.

Another View on Value

While the popular narrative sees Masimo as 26.8 percent undervalued, our DCF model tells a very different story. On those cash flow assumptions, fair value sits nearer $98.04, meaning today price looks stretched rather than cheap. Which set of expectations do you trust more?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Masimo for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 914 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Masimo Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in minutes: Do it your way.

A good starting point is our analysis highlighting 2 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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