DexCom, Inc. logo DXCM - DexCom, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
1
BUY 41
HOLD 8
SELL 2
STRONG
SELL
0
| PRICE TARGET: $78.25 DETAILS
HIGH: $92.00
LOW: $64.00
MEDIAN: $78.50
CONSENSUS: $78.25
UPSIDE: 8.53%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Fair Value Moderate
Trading 20.8% below fair value
Current Price $72.10
Bear Case $51.45 28.6% downside ($51.45 - $72.10) / $72.10 = -28.6% 12% stage 1 growth, 12% discount
Fair Value $91.01 26.2% upside ($91.01 - $72.10) / $72.10 = 26.2% 20% stage 1 growth, 12% discount
Bull Case $140.22 94.5% upside ($140.22 - $72.10) / $72.10 = 94.5% 26% stage 1 growth, 12% discount

Adjust Assumptions

19.9%
12.0%
3.0%

Key Value Driver

FCF growth rate (20% base case)

Terminal Value % of EV 42%
Implied Market Multiple 28.4x

Plain-Language 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 $78.25 from 52 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $91.01 per share.

Warnings

Wall Street's average price target is $78.25 (from 52 analysts). Our estimate is 25% above the consensus -- consider that gap carefully.

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