- If you are wondering whether Haemonetics stock is priced attractively right now, the recent share performance and current valuation profile give you a lot to think about.
- The stock last closed at US$71.28, with returns of 5.1% over the past 7 days and 29.3% over the past month, while the year to date return is down 10.9% and the 1 year return sits at 1.2%.
- Those moves are set against a longer 3 year return that is down 19.1% and a 5 year return of 18.7%. This comparison helps frame how recent strength fits into a broader picture for the stock. This mix of shorter term gains and mixed longer term performance can influence how investors think about potential upside and risk.
- Haemonetics currently has a valuation score of 3/6. The next sections will walk through the different valuation approaches behind that figure, before finishing with a perspective on an even more complete way to think about what the stock might be worth.
Approach 1: Haemonetics Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model takes estimates of the cash a company might generate in the future and discounts those amounts back to today to arrive at an estimate of what the business could be worth now.
For Haemonetics, the latest twelve month Free Cash Flow (FCF) sits at about $256.50 million. Analyst estimates and Simply Wall St projections see FCF figures such as $179 million in 2026 and $302 million in 2029, with further years extrapolated out to 2035 using a two stage Free Cash Flow to Equity framework. All figures are assessed in $.
Bringing these projected cash flows back to today, the DCF model arrives at an estimated intrinsic value of $124.60 per share, compared with the recent share price of $71.28. On this basis, the stock screens as about 42.8% below the modelled value, which points to a meaningful valuation gap if the cash flow path plays out as assumed.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Haemonetics is undervalued by 42.8%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks.
Approach 2: Haemonetics Price vs Earnings
For a profitable company like Haemonetics, the P/E ratio is a useful way to think about what you are paying for each dollar of current earnings, which is often how the market anchors valuation. Higher growth expectations or lower perceived risk can support a higher P/E, while slower growth or higher risk usually lines up with a lower, more cautious multiple.
Haemonetics trades on a P/E of 33.29x. That compares with an industry average P/E of 25.29x for Medical Equipment companies and a peer group average of 37.52x, so the stock sits above the sector but below peers. Simply Wall St also calculates a proprietary “Fair Ratio” for Haemonetics of 31.12x.
This Fair Ratio is intended to be more tailored than a simple industry or peer comparison, because it factors in company specific characteristics such as earnings growth, profit margins, market capitalization, industry and key risks. By adjusting for these elements, it aims to provide a more balanced reference point for what might be a reasonable P/E for this particular stock.
Comparing the current P/E of 33.29x with the Fair Ratio of 31.12x, Haemonetics currently appears somewhat expensive on this metric.
Result: OVERVALUED
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Upgrade Your Decision Making: Choose your Haemonetics Narrative
Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as simple stories you build around Haemonetics that connect your view of its future revenue, earnings and margins to a forecast and then to your own fair value estimate, all within the Simply Wall St Community page that is used by millions of investors.
With a Narrative, you are not just looking at a P/E or DCF in isolation. You are linking what you think happens in areas like plasma, vascular closure and reimbursement to a set of numbers, comparing the Fair Value that falls out of that story with the current share price to help you decide whether the stock looks attractive or stretched for you.
Because Narratives on Simply Wall St update automatically when new data such as earnings, guidance changes or FDA announcements arrive, your story stays current rather than frozen at one point in time.
For Haemonetics, one investor might align with a more cautious Narrative that points to a Fair Value around US$62.0, while another might lean toward a more optimistic Narrative that supports a Fair Value near US$86.9. Seeing those side by side helps you choose which story, and which numbers, feel closest to your own view.
For Haemonetics, however, we will make it really easy for you with previews of two leading Haemonetics Narratives:
Fair value in this Narrative: US$86.90 per share
Implied discount to this fair value, based on the recent US$71.28 share price: about 18% below the Narrative fair value
Revenue growth assumption: 5.28% a year
- Assumes continued momentum in plasma and hospital products helped by portfolio reshaping, software uptake and margin expansion.
- Builds in long term demand support from an aging population and greater use of blood management and plasma derived therapies.
- Flags concentration in a few U.S. focused products and limited international reach as key risks that could unsettle earnings if conditions change.
Fair value in this Narrative: US$62.00 per share
Implied premium to this fair value, based on the recent US$71.28 share price: about 13% above the Narrative fair value
Revenue growth assumption: 4.83% a year
- Highlights that advances in bloodless surgery, reimbursement pressure and competition could cap revenue and margin progress if issues are not addressed.
- Stresses the reliance on U.S. markets and three core products, with policy shifts or slower procedures seen as important risks.
- Points out that plasma volume cyclicality, cost control in healthcare and higher operating expenses could weigh on long term earnings and cash flow.
These two Haemonetics Narratives frame a possible range of outcomes for the stock using the same business data but different views on growth, margins and risk. By comparing them, you can decide which story sits closer to your own expectations and then fine tune it on the Community page rather than starting from scratch.
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Haemonetics on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
Do you think there's more to the story for Haemonetics? 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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