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Globus Medical (GMED): Assessing Valuation After a 3-Month 50% Share Price Surge

Simply Wall St · 2d ago

Globus Medical (GMED) has quietly outperformed many healthcare names over the past 3 months, climbing almost 50% even as the broader market has moved sideways. This performance has put fresh attention on its underlying growth story.

See our latest analysis for Globus Medical.

Zooming out, the stock’s 49.89% 3 month share price return stands in sharp contrast to its modest 4.01% 1 year total shareholder return. This suggests momentum has only recently accelerated as investors reassess its growth profile.

If Globus Medical’s run has you rethinking your healthcare exposure, it could be worth scouting other potential leaders across healthcare stocks for fresh ideas.

With earnings still growing and shares trading at a discount to analyst targets, Globus Medical’s recent surge raises a pivotal question: is this the early stage of a re-rating, or has the market already priced in future growth?

Most Popular Narrative Narrative: 11.1% Undervalued

With Globus Medical closing at $85.06 against a narrative fair value near $95.70, the latest storyline hinges on steady growth and disciplined valuation assumptions.

The analysts have a consensus price target of $82.545 for Globus Medical based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $106.0, and the most bearish reporting a price target of $65.0.

Read the complete narrative.

Curious how modest revenue gains, rising margins and a richer future earnings multiple combine to justify a higher fair value than today’s price? The narrative walks through a step by step roadmap that blends projected earnings power, share count changes and a carefully chosen discount rate into one cohesive valuation story.

Result: Fair Value of $95.70 (UNDERVALUED)

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

However, lingering integration risks and signs of slowing spine procedure growth could still derail margin expansion and challenge the upbeat valuation case.

Find out about the key risks to this Globus Medical narrative.

Build Your Own Globus Medical Narrative

If this view does not fully align with your thinking, or you would rather dive into the numbers yourself, you can build a custom take in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Globus Medical.

Looking for more investment ideas?

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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.