* Note: Prices are in Million (M) USD.
Description:
DexCom, Inc. is a company that develops, manufactures, and distributes continuous glucose monitoring (CGM) systems for diabetes management. It operates internationally with headquarters in San Diego, California, and has a manufacturing facility in Mesa, Arizona.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,159 M
Debt : $2,579 M
EBITDA : $1,039 M
Net Debt (Debt - Cash): $1,420 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Diagnostics & research
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 32.40
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $84 M
Average Revenue: $992 M
Revenue Converted To Free Cash Flow (%): 8.5%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $4,033 M
Revenue 4 Years Ago (2020-12-31): $1,927 M
Last 5 Years Average Revenue Growth: 22%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $413 M
Share Count 5 Years Ago (2020-12-31): $390 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.58
Trailing 12-Month Earnings Per Share (EPS): $2.07
Average Earnings Per Share (EPS): $2.33
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 18 valid ROE years (max 20).Average ROE: -56.0%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $75
52-Week Low: $58
Threshold Price (15% Above 52-Week Low): $66
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $30,925 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 14 points to above DexCom Inc (DXCM) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 1 Years Avg PE
40.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 1 Years Avg P/E (40.00)
× EPS ($2.33) = $93.00.
Last 1 Years Avg PE 40, Fair Value PE 12, Industry Based PE 18, Growth Based PE 21, RCFC Based PE 16.81, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 19.27. Value-Trades has assined P/E value 19.27. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.325.
The fair value of DexCom Inc (DXCM) stock should be (19.27 x $2.325) = $44.8.
