Natera (NTRA) Valuation Spotlight: Fast Company Honors Spark Fresh Focus on Growth and Innovation

Natera (NTRA) just landed on Fast Company’s 2025 Next Big Things in Tech list, recognized for its Signatera molecular residual disease test for cancer. This type of industry validation sometimes sparks renewed interest in growth stocks in biotech.

See our latest analysis for Natera.

After getting recognized for its Signatera test and presenting at this year’s ESMO Congress, Natera has caught investor attention with a 7% share price gain this past week alone. The stock’s one-year total shareholder return sits at an impressive 48%, with a three-year total return above 300%, reflecting real momentum and long-term confidence in the company’s growth story.

If Natera’s breakthrough in precision medicine has you curious, see what other healthcare standouts are capturing attention with transformative innovations. See the full list for free.

With shares up nearly 50% this year and expectations running high, the key question now is whether Natera’s recent gains reflect its long-term potential or if markets have already priced in future growth. Is there still a buying opportunity?

Most Popular Narrative: 6.2% Undervalued

With Natera's latest close of $181.69 and the consensus fair value at $193.80, the current price sits below what analysts estimate as justified by future growth drivers. This spread has analysts debating whether recent innovations and guidance upgrades can propel shares higher, or if the optimism is already built in.

Growing adoption of molecular diagnostics and expanded clinical validation are driving revenue growth and increased reimbursement in core areas like oncology and organ health. Investments in AI, automation, and new product launches are improving operational efficiency and positioning the company for future expansion in personalized medicine.

Read the complete narrative.

Want to unwrap the financial engine behind Natera’s premium? The narrative centers on double-digit expansion, ambitious margin shifts, and a profit multiple rarely seen outside mega-cap tech. Get a glimpse into the surprising earnings transformation that fuels this bold fair value, and what could tip the balance.

Result: Fair Value of $193.80 (UNDERVALUED)

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

However, setbacks in clinical trial outcomes or delays in regulatory approval for new indications could quickly undermine the current optimism around Natera’s future growth.

Find out about the key risks to this Natera narrative.

Another View: Multiple-Based Valuation Raises Caution

Looking through a different lens, Natera trades at a price-to-sales ratio of 12.7x, which is higher than both the US Biotechs industry average of 11.3x and its direct peers at 5.8x. It is also above the fair ratio of 7.2x suggested by market trends, signaling the stock may hold significant valuation risk if market sentiment shifts. If growth does not accelerate as expected, could investors be left holding shares that need years of outperformance to justify their premium price?

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

Build Your Own Natera Narrative

If you see the story from a different angle or want to dig deeper into the numbers yourself, you can craft your own perspective in just a few minutes: Do it your way.

A great starting point for your Natera 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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