Medical - Instruments & Supplies · NASDAQ
Current Price
$76.01
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Hologic, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Hologic, Inc. develops, manufactures, and supplies diagnostics products, medical imaging systems, and surgical products for women's health through early detection and treatment in the United States, Europe, the Asia-Pacific, and internationally. It operates through four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health. The company provides Aptima molecular diagnostic assays to detect the infectious microorganisms; Aptima viral load tests for HIV, Hepatitis C, and Hepatitis B; Aptima SARS-CoV-2 and Panther Fusion SARS-CoV-2 assays for the detection of SARS-CoV-2; ThinPrep System for use in cytology applications; Rapid Fetal Fibronectin Test that assists physicians in assessing the risk of pre-term birth; and various diagnostic tests for the detection of Group B Streptococcus. It also offers breast imaging and analytics, such as 2D and 3D digital mammography systems and reading workstations, minimally invasive breast biopsy guidance systems and devices, breast biopsy site markers and localization, specimen radiology, and ultrasound and connectivity solutions; and breast conserving surgery products. In addition, the company provides NovaSure Endometrial Ablation System for the treatment of abnormal uterine bleeding; MyoSure Hysteroscopic Tissue Removal System for the removal of fibroids, polyps, and other pathology within the uterus; and Fluent Fluid Management System that provides liquid distention during diagnostic and operative hysteroscopic procedures. Further, it offers Horizon DXA, a dual energy X-ray system; and the Fluoroscan Insight FD mini C-arm to perform minimally invasive orthopedic surgical procedures. The company sells its products through direct sales and service forces, and independent distributors and sales representatives. Hologic, Inc. was incorporated in 1985 and is headquartered in Marlborough, Massachusetts.
ROIC (TTM)
7.2%
ROE (TTM)
11.0%
FCF Yield
5.89%
Based on trailing twelve-month data, HOLX shows a free cash flow per share of N/A and a ROIC of 7.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 5.89% are important context metrics when evaluating HOLX's stock valuation relative to peers.
The intrinsic value of HOLX depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether HOLX is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $76.01. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Hologic, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Medical - Instruments & Supplies industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting HOLX's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Hologic, Inc., this means projecting how much free cash flow the Medical - Instruments & Supplies will produce over the next 5-10 years, then discounting those amounts to today's dollars. HOLX's ROIC of 7.2% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For HOLX, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
