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If you are wondering whether Globus Medical is priced attractively today, you are not alone. The key is to look past the headline share price to what you are actually paying for the business.
The stock recently closed at US$92.98, with returns of 5.2% over the last 30 days and 1.1% over the past year. These figures can change how investors view both its growth potential and its risk.
Recent attention on Globus Medical has centered on its position in the medical devices space and how the market is treating companies focused on spine and musculoskeletal care. These discussions have sharpened focus on what a fair price might be for Globus Medical relative to its peers.
Our Simply Wall St valuation model currently gives Globus Medical a valuation score of 3 out of 6, based on how many checks suggest the stock looks undervalued. Next, we will compare different valuation approaches before finishing with a way to interpret them that can give you a clearer view of the stock.
A Discounted Cash Flow, or DCF, model estimates what a company might be worth today by projecting its future cash flows and then discounting those back to a single present value.
For Globus Medical, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in $. The latest twelve month free cash flow is reported at about $573.8 million. Analysts provide estimates out to 2027, with free cash flow for that year projected at $672.1 million, and Simply Wall St then extends the outlook using its own assumptions through 2035.
Across the ten year projection set, estimated free cash flows range from $355.55 million in 2026 to $930.24 million in 2035, with each year discounted back to today to account for risk and the time value of money.
Putting all of that together, the model arrives at an intrinsic value of about $114.58 per share. Against the recent share price of $92.98, this implies the stock is about 18.9% undervalued on this measure.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Globus Medical is undervalued by 18.9%. Track this in your watchlist or portfolio, or discover 886 more undervalued stocks based on cash flows.
GMED Discounted Cash Flow as at Jan 2026
Story continues
P/E is a useful yardstick for profitable companies because it directly links what you pay for the stock to the earnings the business is already generating. In simple terms, a higher P/E usually reflects higher expected growth or lower perceived risk, while a lower P/E often points to more muted expectations or higher risk.
Globus Medical currently trades on a P/E of about 29.4x. That sits below the Medical Equipment industry average of roughly 32.0x and well below the peer group average of about 53.6x. On the surface, that suggests the market is applying a lower earnings multiple than many comparable names.
Simply Wall St also uses a proprietary “Fair Ratio” to estimate what P/E might be reasonable for Globus Medical, given factors such as its earnings growth profile, profit margins, industry, market cap and company specific risks. Because this Fair Ratio adjusts for these fundamentals, it can give a more tailored view than a simple comparison with industry or peers. For Globus Medical, the Fair Ratio is 22.1x, which is below the current P/E of 29.4x, indicating the shares are priced above this fundamental yardstick.
Result: OVERVALUED
NYSE:GMED P/E Ratio as at Jan 2026
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Globus Medical with the numbers behind it.
A Narrative is your story about the company, where you set your own assumptions for fair value, future revenue, earnings and margins, then link that story directly to a financial forecast and a value per share.
On Simply Wall St, within the Community page used by millions of investors, Narratives are an easy tool that helps you compare your Fair Value with the current price so you can decide whether Globus Medical looks attractive, fully priced or expensive based on your own thinking. They update automatically as fresh news or earnings are added.
For example, one Globus Medical Narrative on the Community page might assume a higher long term profit margin and arrive at a Fair Value well above US$92.98, while another more cautious Narrative could use lower revenue growth and margins and land on a Fair Value closer to US$70.
Do you think there’s more to the story for Globus Medical? Head over to our Community to see what others are saying!
NYSE:GMED 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include GMED.
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