PROCEPT BioRobotics (PRCT): Evaluating Valuation Pressures and Potential After Recent Share Price Decline

PROCEPT BioRobotics (PRCT) has captured investor attention after a steep drop in its share price over the past three months. The pullback comes as markets weigh short-term uncertainties against the company's longer-term innovation story.

See our latest analysis for PROCEPT BioRobotics.

It has been a rough year for PROCEPT BioRobotics, with the share price retreating more than 58% year-to-date and the 1-year total shareholder return sitting at -52%. While the recent sell-off reflects shifting market sentiment amid operational headwinds and leadership changes, the company’s underlying growth engine and innovation story remain central to the longer-term outlook. Momentum has clearly faded in the short term, but expectations for a turnaround persist.

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With shares now trading well below analyst price targets, investors must weigh persistent risks against proven innovation. Is this recent slide an entry point for long-term gains, or is the market accurately pricing in the future?

Most Popular Narrative: 47% Undervalued

With PROCEPT BioRobotics closing at $34.83 compared to a consensus fair value of $65.60, the narrative estimates significant upside from current levels. This forecast is based on strong projections for market adoption and profitability as the main factors for the stock’s re-rating.

Recent assignment of a permanent CPT Category I code and a 5.6% increase in Medicare hospital facility reimbursement for Aquablation will materially reduce administrative hurdles, support broader clinical adoption, and improve patient access. This positions the company for an acceleration in procedure volumes and revenue growth in 2026 and beyond.

Read the complete narrative.

Want to know why growth expectations are so bullish? The forecasted pace of hospital adoption and margin improvement stands out. How high could revenue and earnings really climb? Explore the details of this scenario to see what assumptions shape the fair value calculation.

Result: Fair Value of $65.60 (UNDERVALUED)

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

However, persistent operating losses and heavy reliance on Aquablation technology could stall the expected turnaround if competitive or regulatory challenges arise.

Find out about the key risks to this PROCEPT BioRobotics narrative.

Another View: Revenue Multiples Raise a Flag

Looking through the lens of price-to-sales ratios, PROCEPT BioRobotics trades at 7 times its annual revenue, far above the US Medical Equipment industry average of 2.9x and the peer average of 4.4x. Even compared to its fair ratio of 4.4x, the gap suggests the stock is priced for high growth and leaves little margin for error if expectations slip. Could this premium signal more risk than reward?

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

Build Your Own PROCEPT BioRobotics Narrative

Prefer to draw your own conclusions or dig deeper into the numbers? Crafting a personal narrative is simple and takes just a few minutes. Do it your way.

A great starting point for your PROCEPT BioRobotics research is our analysis highlighting 1 key reward 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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