Glaukos (GKOS): Valuation Insights Following Recent Share Price Uptick

Glaukos (GKOS) has caught the attention of investors following its recent performance. Shares climbed 2.5% in the last session, even as the healthcare stock remains down about 44% year-to-date. This provides a fresh angle for valuation discussions.

See our latest analysis for Glaukos.

Glaukos’s 2.5% share price gain in the latest session stands out, but it arrives after momentum has faded this year. The stock has lost nearly 44% of its value year-to-date on price return, though long-term holders still see a 61% total shareholder return over three years. This results in a mix of painful drawdown and eye-catching longer-term growth potential depending on your entry point.

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But with shares down sharply for the year while analyst price targets and recent growth figures suggest upside, the real question remains: is Glaukos currently trading at a bargain, or has the market already baked in all the good news?

Most Popular Narrative: 30% Undervalued

With Glaukos’s most popular narrative estimating fair value at $119.85 versus the last close of $83.86, there is a notable divergence in perceived worth. The following perspective drives much of the debate about what is truly priced in.

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, likely driving robust multi-year revenue and market expansion.

Read the complete narrative.

Curious how analysts justify such a high valuation? The narrative relies on an aggressive transformation in Glaukos’s margins and growth trajectory. Find out what future projections the analysts are banking on, and what financial assumptions must hold up for this gap to close.

Result: Fair Value of $119.85 (UNDERVALUED)

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

However, execution risks around product launches and possible reimbursement delays could quickly challenge the upbeat valuation narrative at Glaukos.

Find out about the key risks to this Glaukos narrative.

Another View: Discounted Cash Flow Perspective

While the market and analysts currently focus on multiples, our DCF model provides a more dramatic picture. The SWS DCF model estimates Glaukos’s fair value at $310.23 per share, which is nearly four times the current price. Does this suggest a massive disconnect, or are there risks that models miss?

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

Build Your Own Glaukos Narrative

If you see the numbers differently or want to dive in on your own, you can easily put together your own take in just minutes, and Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Glaukos.

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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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