A Look at Illumina’s (ILMN) Valuation Following the Launch of Its Protein Prep Assay for Proteomics Expansion

If you have been trying to figure out what’s next for Illumina (ILMN), you are not alone. The spotlight is back on the company following the broad release of its Illumina Protein Prep assay, a product designed to open new frontiers in large-scale proteomics and multiomics research. After a successful early-access run, researchers worldwide now have access to a streamlined tool for connecting genomics with protein-level insights. Some believe this could shape the next wave of biomarker discovery and precision therapies.

This product launch marks a shift in the conversation around Illumina, moving attention away from its recent acquisition efforts and towards its ability to innovate from within. Despite the buzz, Illumina’s share price is still down around 20% over the past year, even though it has gained roughly 12% in the past 3 months. The momentum has picked up lately, coinciding with both the Protein Prep rollout and ongoing strength in the broader proteomics space, following on smaller collaborations and an uptick in recent news.

With this turning point for Illumina, investors are left wondering whether this is an overlooked buying opportunity or if markets are already accounting for all the future growth from the company’s latest innovation.

Most Popular Narrative: 12.3% Undervalued

According to the most widely followed narrative, Illumina’s current share price sits at a notable discount to its estimated fair value. This suggests underappreciated upside based on long-term financial projections and industry trends.

Strong and resilient growth in clinical applications, especially oncology, genetic disease testing, and reproductive health, continues to expand as genomic technologies become the standard of care. This supports both recurring revenues from consumables and long-term earnings visibility. Increasing adoption of next-generation sequencing for preventive healthcare and early disease detection is driving broader utilization of Illumina's platforms. Clinical markets now represent over 60% of sequencing consumables, positioning the business for sustained volume and revenue growth.

Want to unlock the numbers behind this valuation call? Analysts’ fair value hinges on bold projections for future profit margins and the company’s evolving mix between recurring revenues and breakthrough innovations. Could this financial playbook reveal the path to double-digit upside? Dig into the full narrative to see which assumptions are powering the bullish case for Illumina’s next chapter.

Result: Fair Value of $111.95 (UNDERVALUED)

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

However, ongoing budget constraints and rising competition could quickly undermine the optimism driving this undervalued narrative for Illumina.

Find out about the key risks to this Illumina narrative.

Another View: Our DCF Model

Stepping back from analyst price targets, our SWS DCF model also sees Illumina as undervalued. It uses a different lens focused on long-term cash flows. Will both approaches prove too cautious?

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 Illumina 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 Illumina Narrative

If you see things differently or want to dig deeper into Illumina’s story, you can craft your own perspective in just a few minutes by using Do it your way.

A great starting point for your Illumina research is our analysis highlighting 3 key rewards and 2 important warning signs 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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