Boston Scientific Corporation (BSX) Stock Valuation — PE Analysis
Medical - Devices · NYSE
Current Price
$46.91
PE Ratio (TTM)
19.6x
Intrinsic Value
$63.18
+25.7% 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 PE valuation
A base case PE valuation for BSX estimates a fair value of about $63.18 per share, against a current price of $46.91. The model assumes 11.3% annual earnings growth, a 20x target PE multiple, and a 10% discount rate.
Intrinsic Value
$63.18
Margin of safety
+25.7%
Expected annual return
+6.1%
Base case assumptions: 11.3% annual earnings growth, 20x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the BSX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Boston Scientific Corporation respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
19.6x
PEG Ratio
0.27
Earnings Yield
5.10%
ROE (TTM)
14.8%
Revenue/Share (TTM)
$13.88
Debt/Equity
0.43x
Frequently Asked Questions
What is the PE ratio of BSX?
The trailing twelve-month PE ratio of BSX reflects how much investors pay per dollar of Boston Scientific Corporation's earnings. This metric is most useful when compared to Medical - Devices peers and the company's own historical range.
Is BSX overvalued based on PE ratio?
BSX's PE of 19.6x combined with a PEG ratio of 0.27 provides a growth-adjusted perspective. A PEG below 1.0 suggests BSX may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Devices, a DCF analysis may be more appropriate.
How do I value BSX stock using PE ratio?
To value Boston Scientific Corporation using PE: (1) Compare the current PE (19.6x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (0.27) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of BSX?
BSX's PEG ratio is 0.27, calculated by dividing the PE ratio (19.6x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for BSX stock valuation?
PE ratio gives a quick relative read — how BSX is priced versus Medical - Devices peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See BSX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value BSX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.