Is Teleflex A Hidden Opportunity After Sharpening Its Medtech Portfolio In 2025?

• Wondering if Teleflex at around $119 a share is a value trap or a quiet opportunity in medical devices? You are not alone. This stock has been on a lot of watchlists lately.
• Despite being down roughly 33.5% year to date and 35.7% over the last year, the stock has shown a modest 3.3% bounce in the past week, even after a slightly negative 30 day move.
• Recent headlines have focused on Teleflex sharpening its portfolio in core interventional and surgical product lines and leaning into higher margin, higher growth categories, signaling a push to rebuild investor confidence. At the same time, the broader medtech space has been reassessed as investors rotate between defensive healthcare names and higher growth themes. This helps explain some of the volatility in Teleflex shares.
• Right now Teleflex scores a solid 5/6 on our valuation checks, suggesting the market may be underpricing most of its fundamentals. Next we will unpack how different valuation approaches see the stock, before finishing with a more powerful way to think about its true worth.

Find out why Teleflex's -35.7% return over the last year is lagging behind its peers.

Approach 1: Teleflex Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a business is worth today by extrapolating its future cash flow projections and discounting them back to the present. For Teleflex, the model starts with last twelve months Free Cash Flow of about $273 million and then projects how that cash flow could grow over time.

Analysts see Free Cash Flow rising to around $749 million by 2026, with further years extrapolated to roughly $1.67 billion by 2035, based on gradually moderating growth rates. All of these future $ cash flows are discounted using a required rate of return to reflect risk and the time value of money.

On this basis, the 2 Stage Free Cash Flow to Equity model arrives at an intrinsic value of roughly $462 per share. Compared with the current share price near $119, the DCF output suggests Teleflex is trading at an implied discount of about 74.2%, which some long term investors may interpret as a wide margin of safety if they are comfortable with the underlying cash flow assumptions.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Teleflex is undervalued by 74.2%. Track this in your watchlist or portfolio, or discover 919 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Teleflex.

Approach 2: Teleflex Price vs Sales

For many established, profitable medtech companies, the price to sales multiple is a useful yardstick because it ties the share price directly to the revenue base that supports future margins and cash flows, especially when earnings can be temporarily noisy.

In practice, what counts as a fair price to sales ratio depends on how quickly a company is expected to grow and how risky that growth is, with faster, more resilient growth typically justifying a higher multiple and slower or uncertain growth arguing for a lower one.

Teleflex currently trades on a price to sales multiple of about 1.65x, which is materially below both the Medical Equipment industry average of around 3.39x and the peer group average near 5.09x. Simply Wall St’s Fair Ratio framework goes a step further by estimating what multiple Teleflex should command given its specific mix of growth prospects, profitability, size and risk profile, arriving at a Fair Ratio of roughly 2.15x. Because this approach is tailored to the company rather than generic sector comparables, it offers a more nuanced signal. On that basis, Teleflex’s current 1.65x looks meaningfully discounted versus its Fair Ratio.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Teleflex Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, simple stories that capture your view of Teleflex’s future by linking your assumptions about revenue growth, margins and risks to a financial forecast and a resulting fair value estimate, all within an easy to use tool on Simply Wall St’s Community page that millions of investors already use. Instead of stopping at static multiples or a single price target, Narratives help you monitor your fair value view by continually comparing your Fair Value to the live share price and automatically updating when new information, such as earnings, guidance changes or trial results, hits the market. For Teleflex, one investor might build a bullish Narrative around accelerating diabetes trial progress, successful integration of BIOTRONIK’s vascular business and margin expansion that supports a fair value near the higher analyst target of about 155 dollars. Another might construct a more cautious Narrative that focuses on UroLift weakness, margin pressure and integration risk and lands closer to the lower end of recent fair value estimates around 120 to 124 dollars. This illustrates how the same company can support very different, but clearly structured, investment theses.

Do you think there's more to the story for Teleflex? Head over to our Community to see what others are saying!

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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