Author performs a day-1 DCF-style valuation of Boston Scientific, concluding the current price is near the low end of fair value and would warrant a starter position.
BSX — LONG The author values Boston Scientific using 2025 adjusted EPS of 3.05 as the base, treating it as a proxy for free cash flow since FCF/net income exceeds 80%. Under a 13% EPS growth for 5 years scenario and a 9% EPS growth for 10 years scenario, NPV gives a fair value of $79.97 to $88, versus Morningstar's $90 and CFRA's $76.91. He concludes the current price is near the bottom end of fair value and would start buying with a 1/3 allocation. Management's 2026 guidance of ~13.1% adjusted EPS growth and 10-11% sales growth is noted as possibly causing the recent share price swoon.
I concluded that at the current price, it is near the bottom end of the fair value price. If i were buying this, I would start buying with a 1/3 allocation.