Globus Medical focuses on the design, development, and commercialization of musculoskeletal implants that promote healing in patients with spine disorders. The company was founded in 2003 and is based in Audubon, Pennsylvania.
GMED Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GMED, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Globus Medical Inc ranked in the 19th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for GMED, they are:
The company's balance sheet shows it gets 100% of its capital from equity, and 0% of its capital from debt. Notably, its equity weight is greater than 95.79% of US equities in the Healthcare sector yielding a positive free cash flow.
The business' balance sheet suggests that 0% of the company's capital is sourced from debt; this is greater than merely 0.05% of the free cash flow producing stocks we're observing.
Globus Medical Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -6.65. This coverage rate is greater than that of merely 10.8% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Globus Medical Inc? See AZN, CNC, NUVA, CNMD, and LMNX.
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