BSX
Boston Scientific Corporation
$44.64
Platform & Compounding FCF
85%
Two-stage FCF DCF
Moderate
·
Conviction
Undervalued
Trading 35.0% below fair value
You pay
$44.64
Bear
$41.84
Fair
$68.65
Bull
$98.10
Bear
$41.84
-6.3%
9% stage 1 growth, 11% discount
Fair
$68.65
+53.8%
14% stage 1 growth, 11% discount
Bull
$98.10
+119.8%
19% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (14% base case)
Terminal Value % of EV
42%
Implied Market Multiple
22.3x
Market is pricing in (growth)
10.5%
vs 14.4% base
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $82.90 from 44 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $68.65 per share.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions