A Look at Boston Scientific’s Valuation Following Breakout Electrophysiology Growth and Expanded FDA Approval

Boston Scientific (BSX) reported strong third-quarter 2025 financial results, with its Electrophysiology division seeing remarkable growth due to the FARAPULSE Pulsed Field Ablation System and expanded FDA approval. Product launches and strategic moves also contributed to this momentum.

See our latest analysis for Boston Scientific.

Boston Scientific’s recent product launches and surging Electrophysiology sales have helped maintain momentum in what is becoming a more competitive space, even as rivals launch competing ablation devices. The company’s shares have delivered a rewarding run, with a 13.34% total shareholder return over the past year and a striking 163% total return over five years. This indicates that long-term investors have enjoyed significant compounding gains, while the outlook remains constructive.

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Yet with shares up sharply over the long run, and Wall Street’s price targets still considerably higher than current levels, the question now is whether Boston Scientific remains undervalued or if future growth is already reflected in the current price.

Most Popular Narrative: 20.9% Undervalued

Boston Scientific’s last closing price is notably lower than the narrative’s fair value estimate, suggesting that consensus sees material upside ahead. This sets the stage for a closer look at the drivers behind this valuation.

Accelerated adoption of advanced therapies like FARAPULSE (pulsed field ablation) and WATCHMAN, backed by expanded clinical indications, strong safety and efficacy data, and increased physician uptake, particularly in major global markets, positions Boston Scientific for continued above-market procedure growth, benefiting revenue and gross margins. Broadening global access through double-digit growth in emerging markets, especially Asia Pacific (notably in China and Japan), supports long-term international revenue diversification and offsets potential slowdowns in developed regions, driving total top-line expansion.

Read the complete narrative.

Curious why analysts believe Boston Scientific's future could eclipse typical medtech peers? The narrative rides on game-changing therapies and ambitious global expansion, hinting at explosive growth. What specific bold targets power this valuation? Delve deeper to see which projections and financial levers unlock that fair value estimate.

Result: Fair Value of $126.48 (UNDERVALUED)

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

However, persistent cost pressures and heightened competition from low-cost device makers could challenge Boston Scientific’s margin resilience and slow revenue expansion in the future.

Find out about the key risks to this Boston Scientific narrative.

Another View: Looking at Market Multiples

While analysts see upside in Boston Scientific’s share price, the market’s go-to measure, its price-to-earnings ratio, tells a different story. At 53.1x, Boston Scientific’s ratio stands above the industry average (28.1x), the peer average (39.9x), and even its own fair ratio (38.7x). This significant gap suggests investors are paying a premium that may not last. If the market moves toward the fair ratio, current buyers could face valuation risks. Will relentless innovation justify that higher price, or is a correction coming?

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

Build Your Own Boston Scientific Narrative

If you have a different perspective or want to dive into the numbers firsthand, it's quick and easy to develop your own thesis in just a few minutes. Do it your way

A great starting point for your Boston Scientific research is our analysis highlighting 3 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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