Boston Scientific Corporation (BSX) Stock Valuation — DCF Analysis
Medical - Devices · NYSE
Current Price
$46.91
Intrinsic Value
$60.35
+22.3% margin of safety
COMPETITIVE MOAT
↑Broad Product Portfolio
BSX offers a diverse range of medical devices across multiple therapeutic areas. This diversification reduces reliance on any single product or market segment, providing stability.
↑Strong R&D Pipeline
Continuous investment in research and development fuels innovation and the introduction of new, advanced medical technologies. This keeps BSX competitive and addresses evolving healthcare needs.
↑Global Distribution Network
An established worldwide sales and distribution infrastructure allows BSX to reach a broad customer base. This network is difficult for smaller competitors to replicate.
INVESTMENT RISKS
↓Regulatory Hurdles
The medical device industry faces stringent and evolving regulatory approvals. Delays or rejections can significantly impact product launches and revenue.
↓Intense Competition
BSX operates in a highly competitive landscape with both large established players and nimble startups. Pricing pressures and market share battles are constant.
↓Product Liability
Defective medical devices can lead to costly lawsuits and reputational damage. This risk is inherent in the manufacturing and sale of medical equipment.
Base case
BSX base case valuation
A base case discounted cash flow model for BSX estimates an intrinsic value of about $60.35 per share, against a current price of $46.91. The model assumes 11.0% annual free cash flow growth, a 10.0% discount rate, and a 20x exit multiple.
Intrinsic Value
$60.35
Margin of safety
+22.3%
Expected annual return
+5.2%
Base case assumptions: 11.0% annual growth, 10.0% discount rate, 20x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the BSX valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Boston Scientific Corporation respond.
Open DCF Calculator for BSXCompany Overview
Boston Scientific Corporation (BSX) operates as a global leader in medical technology, specializing in the design, manufacturing, and commercialization of innovative medical devices tailored for a diverse array of interventional medical specialties across the globe. Its business is strategically organized into three principal segments: MedSurg, Rhythm and Neuro, and Cardiovascular. Within these divisions, the company provides a comprehensive portfolio of solutions addressing various gastrointestinal and pulmonary ailments, as well as urological and pelvic health concerns. This extends to advanced implantable devices for managing cardiac rhythm disorders, such as cardioverter-defibrillators, cardiac resynchronization therapy devices, and pacemakers, complemented by remote patient management systems. Furthermore, Boston Scientific offers sophisticated technologies for diagnosing and treating complex heart rate and rhythm irregularities. These encompass 3-D cardiac mapping and navigation tools, along with a suite of specialized catheters (including ablation, diagnostic, mapping, and intracardiac ultrasound types), delivery sheaths, and related accessories. Its offerings also extend to neurological conditions, providing spinal cord stimulator systems for chronic pain management, indirect decompression systems, and deep brain stimulation systems. In the realm of interventional cardiology, the company's innovations include drug-eluting coronary stent systems designed for treating coronary artery disease, products for percutaneous coronary interventions to combat atherosclerosis, and intravascular imaging catheters (such as ultrasound and fractional flow reserve devices) for assessing coronary arteries, heart chambers, and peripheral vessels. It also develops structural heart therapies. Beyond this, Boston Scientific supplies an array of stents, balloon catheters, wires, and atherectomy systems for the treatment of arterial diseases. For venous conditions, it provides thrombectomy and acoustic pulse thrombolysis systems, alongside wires and stents. Critically, the company also contributes to cancer treatment through peripheral embolization devices, radioactive microspheres, various ablation systems (including cryotherapy), and micro and drainage catheters. The organization was established in 1979 and maintains its corporate headquarters in Marlborough, Massachusetts.
Financial Metrics — BSX Stock Valuation Data
Revenue/Share (TTM)
$13.88
FCF/Share (TTM)
$2.32
ROIC (TTM)
9.9%
ROE (TTM)
14.8%
P/FCF
20.3x
EV/EBITDA
15.0x
FCF Yield
4.94%
Debt/Equity
0.43x
Based on trailing twelve-month data, BSX shows a free cash flow per share of $2.32 and a ROIC of 9.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 20.3x and FCF yield of 4.94% are important context metrics when evaluating BSX's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of BSX?
Boston Scientific Corporation currently generates $2.32 in free cash flow per share. At the current price of $46.91, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is BSX undervalued?
BSX trades at a P/FCF ratio of 20.3x with a free cash flow yield of 4.94%. This P/FCF is in a moderate range. However, whether BSX is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value BSX stock using DCF?
To perform a DCF valuation on Boston Scientific Corporation: (1) Start with the trailing free cash flow per share ($2.32) as the base, (2) project future FCF growth over 5-10 years based on Medical - Devices industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BSX's risk profile — with a debt-to-equity of 0.43x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to BSX?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Boston Scientific Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Medical - Devices trends, then discounting those amounts to today's dollars. BSX's ROIC of 9.9% shows moderate capital returns.
How does WACC affect BSX stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BSX, with a debt-to-equity ratio of 0.43x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 15.0x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See BSX PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Healthcare valuationsDCF and P/E value BSX with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.