If you are trying to figure out what to do with Boston Scientific stock right immediately, you are not alone. It is one of those names that investors keep coming back to, especially after a remarkable run in recent years. Just think about it: the stock has climbed an impressive 19.4% in the past year and a staggering 187.3% over five years. Even more, the year-to-date gain of 13.0% and a steady 2.8% in the last 30 days suggest this momentum may have staying power.
Behind these moves is a string of positive news that has gradually shifted how the market perceives Boston Scientific, not just for its innovation but also its potential for growth. Announcements around new product launches and successful clinical trial outcomes have added fuel to the optimism, even if they have not triggered sharp surges. These developments work in the background and enhance long-term confidence more than they drive short-term volatility.
But with shares closing recently at $100.97, the big question is whether Boston Scientific is getting too expensive or if the premium is justified. According to our worth scorecard, the company is undervalued on only 1 out of 6 traditional valuation checks. That figure alone makes for a great conversation starter on whether immediately is the right time to grab, hold, or take profits.
Let us break down the main valuation indicators and what they tell us about Boston Scientific. At the end, I will introduce an even smarter lens for looking at this company’s real worth, one that goes beyond the usual numbers.
Boston Scientific scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Discounted Cash Flow (DCF) model projects Boston Scientific’s future cash flows and discounts them back to today’s dollars to estimate the business’s true worth. It is a common approach in valuation that helps investors look beyond current profits and focus on the long-term earning power of a company.
Boston Scientific’s up-to-date twelve-month Free Cash Flow stands at $3.48 Billion. Analyst estimates see this growing to $4.46 Billion by 2027, and further extrapolated projections suggest Free Cash Flow could rise above $8 Billion in the next decade. While direct analyst figures only reach five years ahead, longer-term forecasts can provide a sense of how sustained growth might shape valuation, even if those later years are based more on trend than specific guidance.
According to this DCF approach, Boston Scientific’s fair worth is calculated at $86.60 per share. With shares recently closing at $100.97, the analysis points to a 16.6% premium compared to intrinsic worth. This suggests that investors are paying above what the company’s projected future cash flows can justify at this time.
Result: OVERVALUED
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair worth for Boston Scientific.
BSX Discounted Cash Flow as at Oct 2025
Our Discounted Cash Flow (DCF) analysis suggests Boston Scientific may be overvalued by 16.6%. Find undervalued stocks or create your own screener to find better worth opportunities.
The rate-to-Earnings (PE) ratio is a popular tool for evaluating profitable companies like Boston Scientific because it connects a company’s share rate directly to its actual earnings. For businesses with steady and growing profits, the PE ratio is especially meaningful as it encapsulates how much investors are willing to pay for each dollar of earnings today, reflecting both optimism and caution about the company’s future.
What drives a “normal” or “fair” PE ratio? It is not just about comparing one company to another. Growth expectations and the degree of risk play a central role. speedy-growing, lower-risk companies generally command higher PE ratios, while slower growers or riskier businesses are usually priced with lower multiples.
Boston Scientific currently trades at a PE ratio of 53.6x, which is notably higher than the Medical Equipment industry average of 28.9x and the average of its main peers at 40.3x. At first glance, this premium signals that investors expect much stronger growth from Boston Scientific, or that the market sees it as a safer, higher-quality investment than its competitors.
Rather than drawing a quick conclusion from these simple benchmarks, Simply Wall St uses a proprietary “Fair Ratio,” which for Boston Scientific is calculated at 35.7x. This custom metric considers much more than just past earnings or peer multiples. It reflects a composite of growth forecasts, profit margins, market cap, industry dynamics, and company-specific risks. This delivers a more nuanced and realistic gauge of worth compared to generic industry or peer comparisons.
When we put Boston Scientific’s actual PE of 53.6x side by side with its Fair Ratio of 35.7x, the result is clear: the stock looks significantly overvalued when accounting for its growth outlook, profitability, and business risk profile.
Result: OVERVALUED
NYSE:BSX PE Ratio as at Oct 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a smarter framework for investing that goes beyond the numbers. A Narrative is simply your story or perspective behind a company, explaining why you believe Boston Scientific’s fair worth, future revenue, earnings, and margins will look a certain way.
This story-driven approach connects what is happening inside the business, such as innovation, risks, or expansion, directly to a financial forecast, which then arrives at your own fair worth estimate. Narratives are easy to build and update on Simply Wall St’s Community page, where millions of investors share and refine their perspectives in real time.
The real benefit of Narratives is that they help you decide when to grab or sell by showing how your fair worth compares to the current rate, and automatically update as new news or earnings data come in. For instance, some investors may create a bullish Narrative for Boston Scientific, focusing on margin expansion from new therapies and strong global growth, resulting in a fair worth as high as $140 per share. Others may highlight tougher competition and cost risks, arriving at a more conservative $99 estimate, and each side can see exactly which assumptions drive their view.
Do you think there’s more to the story for Boston Scientific? Create your own Narrative to let the Community know!
NYSE:BSX Community Fair Values as at Oct 2025
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 grab 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 up-to-date rate-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include BSX.
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