Boston Scientific Corporation (BSX) Intrinsic Value & DCF Valuation
Medical - Devices · NYSE
Current Price
$46.04
Intrinsic Value
$59.35
+22.4% margin of safety
What Is Boston Scientific Corporation's Intrinsic Value?
As of 2026-07-29, the base-case DCF model estimates the intrinsic value of Boston Scientific Corporation (BSX) at $59.35 per share, compared with a market price of $46.04, a margin of safety of +22.4%. The base case assumes 10.5% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $48.06 to $72.27. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Boston Scientific Corporation (BSX) Undervalued?
At $46.04, BSX trades about 22.4% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Strong Brand Recognition
Boston Scientific has built a trusted brand over decades, fostering physician loyalty and preference for its established medical devices.
↑Extensive Sales & Distribution Network
A vast global sales force and established distribution channels create significant barriers to entry for new competitors.
↑Intellectual Property & Patents
The company holds numerous patents protecting its innovative medical technologies, providing a temporary monopoly on certain products.
INVESTMENT RISKS
↓Product Recall and Litigation
The company faces ongoing risks of product recalls and costly litigation stemming from device malfunctions or patient harm.
↓Competition from Larger Players
Larger, well-capitalized competitors with broader product portfolios can leverage their scale to gain market share.
↓Innovation Pace and Obsolescence
Rapid technological advancements in the medical field can quickly render existing products obsolete, requiring continuous R&D investment.
Base case
BSX base case valuation
Intrinsic Value
$59.35
Margin of safety
+22.4%
Expected annual return
+5.2%
Base case assumptions: 10.5% annual growth, 10.0% discount rate, 20x exit multiple, 5 year projection. Data as of 2026-07-29.
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)
$14.21
FCF/Share (TTM)
$2.33
ROIC (TTM)
10.8%
ROE (TTM)
15.3%
P/FCF
19.9x
EV/EBITDA
16.5x
FCF Yield
5.03%
Debt/Equity
0.43x
On a trailing twelve-month basis, BSX generates free cash flow per share of $2.33 alongside a ROIC of 10.8%, both central inputs for a DCF valuation. Its P/FCF ratio of 19.9x and FCF yield of 5.03% then frame how BSX is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of BSX?
Boston Scientific Corporation currently generates $2.33 in free cash flow per share. At the current price of $46.04, 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 19.9x with a free cash flow yield of 5.03%. 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 ($2.33) 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 10.8% 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 16.5x, 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.