Glaukos (GKOS): Assessing Valuation After Record Sales, Raised Guidance, and Epioxa FDA Approval

Glaukos (GKOS) delivered a strong quarterly update, with record net sales fueling a narrower loss and boosting investor sentiment. The company's upbeat 2025 guidance and new 2026 outlook, along with a recent FDA approval, are in focus.

See our latest analysis for Glaukos.

Shares of Glaukos have rebounded lately, jumping nearly 18% over the past week as investors reacted positively to record net sales, improved earnings, and the FDA approval of Epioxa. While the share price is still down over 41% year-to-date, long-term investors have seen significant gains, with a three-year total shareholder return of nearly 81%. Momentum is building as optimism returns around the company's revenue outlook and product pipeline.

Curious what else is gaining ground in the healthcare space? Discover the full range of innovators and growth stories through our See the full list for free.

With Glaukos delivering record sales, narrowing losses, and announcing growth-driving FDA approvals, the spotlight turns to its valuation. Is there still upside for investors, or has the market already priced in these gains?

Most Popular Narrative: 25% Undervalued

With Glaukos trading at $88.07 and the most widely followed narrative assigning a fair value of $117.50, analysts see a sizable gap tied to expectations for expanding market adoption. This sets up the company's commercial momentum as a critical dynamic for the coming years.

Strong ongoing adoption and utilization of iDose TR, a first-of-its-kind procedural pharmaceutical with a unique profile, suggests the early stages of a paradigm shift toward interventional glaucoma therapies. This represents a substantial long-term opportunity given the aging population and rising prevalence of glaucoma, which could drive robust multi-year revenue and market expansion.

Read the complete narrative.

How bold are the predictions propping up this valuation? The secret sauce comes down to projections for explosive sales growth, a turnaround in profitability, and a future profit multiple that is eyebrow-raising. Want to see the specific expectations powering this robust fair value? The full narrative spells out every audacious assumption.

Result: Fair Value of $117.50 (UNDERVALUED)

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

However, ongoing reimbursement challenges or disappointing adoption of new therapies could quickly reverse optimism and test the resilience of this positive outlook.

Find out about the key risks to this Glaukos narrative.

Another View: SWS DCF Model Paints a Far More Optimistic Picture

While Glaukos looks expensive using typical market ratios, our DCF model offers a compelling counterpoint. It estimates fair value at $318.73 per share, which is much higher than both current levels and analyst targets. This sharp difference challenges investors to consider which method best reflects Glaukos’ true long-term prospects.

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

Build Your Own Glaukos Narrative

If you want to dig deeper or think differently about where Glaukos is headed, you can investigate the numbers and shape your own perspective in just a few minutes. Do it your way

A great starting point for your Glaukos 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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