Boston Scientific Corporation (BSX) Stock Valuation — PE Analysis
Medical - Devices · NYSE
Current Price
$45.17
PE Ratio (TTM)
18.2x
Intrinsic Value
$55.97
+19.3% margin of safety
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 PE valuation
At a current price of $45.17, the base case PE valuation puts BSX fair value near $55.97 per share. That figure assumes 9.5% yearly earnings growth, a target PE multiple of 18x, and a 10% discount rate.
Intrinsic Value
$55.97
Margin of safety
+19.3%
Expected annual return
+4.4%
Base case assumptions: 9.5% annual earnings growth, 18x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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)
18.2x
PEG Ratio
0.40
Earnings Yield
5.50%
ROE (TTM)
15.3%
Revenue/Share (TTM)
$14.21
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 18.2x combined with a PEG ratio of 0.40 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the 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 (18.2x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (0.40) 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 0.40, calculated by dividing the PE ratio (18.2x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. 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 BSX, with a strong ROE of 15.3%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.