Is Revvity (RVTY) Now Offering Value After Recent Share Price Weakness

• If you are wondering whether Revvity at around US$97.74 is offering good value or just fair value, you are in the right place to unpack what the market might be pricing in.
• The stock has seen a 3.3% decline over the last 7 days, 13.1% over the last 30 days, and sits around a 0.4% year to date decline and a 14.8% decline over the past year. These moves can change how investors think about its growth potential and risk.
• Recent coverage of Revvity has focused on its role in the pharmaceuticals and biotech space and how the market is responding to its current positioning, product focus and sector sentiment. This context helps explain why the share price has moved over the short and medium term, and provides a useful backdrop for assessing value today.
• On our valuation checklist, Revvity scores 4 out of 6 for being undervalued, giving it a valuation score of 4. Next we will walk through the main valuation methods behind that score, before finishing with a way to look at value that ties all of these approaches together.

Find out why Revvity's -14.8% return over the last year is lagging behind its peers.

Approach 1: Revvity Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model takes projected future cash flows and discounts them back to today’s dollars, aiming to estimate what the business might be worth based on the cash it could generate for shareholders.

For Revvity, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $500.4 million. Analysts provide explicit free cash flow estimates for the next few years, and then Simply Wall St extends those projections further out, reaching an estimated free cash flow of $1,093.6 million in 2035, all in USD.

When all those projected cash flows are discounted back using this model, the estimated intrinsic value comes out at about $137.75 per share. Compared with the recent share price of around $97.74, the DCF output implies the stock is around 29.0% undervalued according to these inputs and assumptions.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Revvity is undervalued by 29.0%. Track this in your watchlist or portfolio, or discover 53 more high quality undervalued stocks.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Revvity.

Approach 2: Revvity Price vs Earnings

For a profitable business like Revvity, the P/E ratio is a useful way to see what investors are currently willing to pay for each dollar of earnings. It quickly links the share price to the company’s underlying profitability.

What counts as a “normal” P/E depends a lot on how the market views a company’s growth prospects and risk. Higher expected earnings growth or lower perceived risk can support a higher multiple, while slower growth or higher risk usually points to a lower one.

Revvity currently trades on a P/E of 46.19x. That sits close to the peer group average of 46.99x and above the Life Sciences industry average of 35.30x. Simply Wall St also provides a proprietary “Fair Ratio” for Revvity of 24.83x, which reflects factors such as its earnings profile, industry, profit margins, market cap and specific risks.

This Fair Ratio is more tailored than a simple comparison with peers or the industry, because it adjusts for company specific characteristics rather than assuming all firms deserve similar multiples. Comparing Revvity’s current P/E of 46.19x with the Fair Ratio of 24.83x suggests the shares are trading above what this framework would consider fair.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Revvity Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St’s Community page you can use Narratives to attach your own story about Revvity, link that story to a set of revenue, earnings and margin forecasts, see how that drives a Fair Value, and then compare it with the current price. The system updates automatically when new news or earnings arrive. A more cautious Revvity Narrative might lean closer to the US$100 fair value implied by the lowest analyst target, while a more optimistic one might sit nearer the US$146.63 fair value implied by the highest targets. This gives you a clear, numbers backed view of whether your personal story suggests the shares look expensive or attractive right now.

Do you think there's more to the story for Revvity? Head over to our Community to see what others are saying!

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.

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