Globus Medical (GMED) has quietly outperformed many medical device peers over the past 3 months, with shares climbing roughly 60%, prompting investors to revisit what is driving the stock’s renewed momentum.

Zooming out, the recent 60.49% 3 month share price return compares with a more modest 5.94% one year total shareholder return. This suggests momentum has only really accelerated lately as investors warm to its growth profile and robotics portfolio.

If Globus Medical’s run has you rethinking the healthcare space, this could be a good moment to scout other ideas with our curated list of healthcare stocks.

With shares now near record highs yet still trading below analyst targets and some intrinsic value estimates, the key question is whether Globus Medical remains undervalued or if markets are already pricing in its future growth.

Most Popular Narrative Narrative: 7.6% Undervalued

Globus Medical's most followed valuation narrative pegs fair value at about $95.70 per share, above the recent $88.43 close, framing a modest discount rooted in execution strength.

Successful integration and synergy capture from the NuVasive and Nevro acquisitions are providing opportunities for increased cross-selling, cost efficiencies, and realization of deferred tax assets, which are expected to drive margin expansion, boost earnings, and enhance recurring cash flows in upcoming years.

Curious how this story turns integration complexity into a higher valuation? The narrative leans on ambitious revenue compounding, higher margins, and a future earnings multiple usually reserved for faster growing sectors. Want to see which specific growth and profitability assumptions are most influential in that fair value math? Read on and test whether those projections line up with your own views.

Result: Fair Value of $95.70 (UNDERVALUED)

However, stretched sales cycles for robotics and lingering integration challenges at Nevro and NuVasive could derail the margin and earnings ramp that underpins that valuation.

Build Your Own Globus Medical Narrative

If you would rather question these assumptions and dig into the numbers yourself, you can quickly build a customized view and narrative in just minutes, Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Globus Medical.

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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.