* Note: Prices are in Million (M) USD.
Description:
DexCom, Inc. is a company that develops, manufactures, and distributes continuous glucose monitoring (CGM) systems for diabetes management. It operates internationally with headquarters in San Diego, California, and has a manufacturing facility in Mesa, Arizona.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,159 M
Debt : $2,579 M
EBITDA : $1,039 M
Net Debt (Debt - Cash): $1,420 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Diagnostics & research
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 32.69
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $84 M
Average Revenue: $992 M
Revenue Converted To Free Cash Flow (%): 8.5%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $4,033 M
Revenue 4 Years Ago (2020-12-31): $1,927 M
Last 5 Years Average Revenue Growth: 22%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $413 M
Share Count 5 Years Ago (2020-12-31): $390 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.58
Trailing 12-Month Earnings Per Share (EPS): $2.07
Average Earnings Per Share (EPS): $2.33
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 18 valid ROE years (max 20).Average ROE: -55.9%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $76
52-Week Low: $58
Threshold Price (15% Above 52-Week Low): $66
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $30,588 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 14 points to above DexCom Inc (DXCM) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Last 1 Years Avg PE
40.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 1 Years Avg P/E (40.00)
× EPS ($2.33) = $93.00.
Last 1 Years Avg PE
40, Fair Value PE
12, Industry Based PE
18, Growth Based PE
21.86, RCFC Based PE
8.51, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 6 values, average assigned is
19.66. Value-Trades has assined P/E value
19.66. An average (Current Year EPS + Next Year EPS) earning per share is
$2.325.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $45.72 (PE 19.66 × EPS $2.33)
Fair value using simple average PE × EPS: $93.00 (PE 40.00 × EPS $2.33)
Lesser of these two: $45.72
So the Final Fair Value is: $45.72
