STAAR Surgical (STAA): Assessing Valuation After Recent Share Price Rebound and Growth Prospects

STAAR Surgical (STAA) shares have seen some recent movement, and investors are watching closely for signals about future performance. The company’s stock has ranged widely over the past month and is a conversation point for healthcare sector watchers.

See our latest analysis for STAAR Surgical.

STAAR Surgical’s strong 36.8% 90-day share price return suggests some positive momentum may be building. However, the one-year total shareholder return remains negative at -13.6%. The rebound in the short term contrasts with longer-term weakness and hints at shifting sentiment and possible renewed growth expectations in the market’s view.

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With shares trading just slightly above analyst targets and a mixed track record of returns, investors now face a key question: is STAAR Surgical trading at a bargain, or is the current price already factoring in the company’s future growth?

Most Popular Narrative: Fairly Valued

With STAAR Surgical closing at $26.27 and its most widely followed narrative estimating fair value around $25.88, analyst consensus points to the current price reflecting expectations for future growth and profitability. The narrative suggests that recent upward price movements are largely in line with underlying fundamentals and outlook.

The introduction of EVO+, a new product line in China, is anticipated mid-2025. While not included in current revenue forecasts, it could lead to higher average selling prices (ASP) and revenue growth if consumer adoption materializes.

Read the complete narrative.

Curious which bold new launch in a major market could reshape STAAR Surgical’s growth map? This narrative is built on ambitious product rollout assumptions and a profitability turnaround. Find out what numbers analysts are betting on to support this valuation.

Result: Fair Value of $25.88 (ABOUT RIGHT)

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

However, analysts caution that weak consumer demand in China and reliance on a single distributor could quickly disrupt STAAR Surgical’s expected recovery path.

Find out about the key risks to this STAAR Surgical narrative.

Another View: What Does the SWS DCF Model Say?

The SWS DCF model puts STAAR Surgical’s fair value at $26.67, slightly above its current trading price. This result suggests shares could be modestly undervalued based on long-term cash flow assumptions. However, does the DCF model capture all the real-world risks and rewards ahead?

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 STAAR Surgical 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 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 STAAR Surgical Narrative

If you want to dive into the numbers yourself or see the story from your own perspective, it takes just a few minutes to build your own view. Do it your way.

A great starting point for your STAAR Surgical 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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