DexCom focuses on the design, development, and commercialization of continuous glucose monitoring systems for patients with diabetes. The company was founded in 1999 and is based in San Diego, California.
DXCM Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Dexcom Inc. To summarize, we found that Dexcom Inc ranked in the 43th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 5.5%. In terms of the factors that were most noteworthy in this DCF analysis for DXCM, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 96. Its equity weight surpasses that of 74.82% of free cash flow generating stocks in the Healthcare sector.
The company's compound free cash flow growth rate over the past 5.42 years comes in at 0.85%; that's greater than 88.87% of US stocks we're applying DCF forecasting to.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately merely 13.37% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HBIO, ITGR, CNC, IART, and PRAH can be thought of as valuation peers to DXCM, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
Investment Thesis Exact Sciences Corporation (EXAS) and DexCom, Inc. (DXCM) are active investment alternatives in competition with dozens of other medical diagnostic and research enterprises. Success from an investment point of view relates more to increased stock price than lives saved. That measure depends importantly on a combination of research...
Peter F. Way, CFA on Seeking Alpha | August 3, 2020