• If you are wondering whether DENTSPLY SIRONA’s share price reflects its underlying worth, you are not alone. This article walks through what the current market price might be implying about value.
• The stock closed at US$12.58, with returns of 0.8% over the past week and 10.6% over the past month, set against a year to date return of 11.6% and a 1 year return of a 28.4% decline.
• Recent coverage has focused on how investors are reassessing dental and medical equipment names like DENTSPLY SIRONA in light of shifting sentiment toward healthcare suppliers and capital equipment spending. These discussions give useful context when thinking about whether the latest price moves reflect short term mood or a change in how the market views the company’s long term prospects.
• On our checks, DENTSPLY SIRONA scores 5 out of 6 on valuation, as shown in the valuation scorecard. Next we look at traditional methods such as multiples and cash flow models, before finishing with an approach that can help you frame all these valuation signals more clearly.

Approach 1: DENTSPLY SIRONA Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company could be worth by projecting its future cash flows and then discounting them back to today’s value.

For DENTSPLY SIRONA, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $78.4 million. Analyst inputs and extrapolations are then used to project annual free cash flow out to 2035, with estimates such as $229.4 million in 2026 and $407 million in 2029, all in $ and all below $1b, so still firmly in the millions range.

When those projected cash flows are discounted back and combined, the DCF model points to an estimated intrinsic value of about $30.71 per share. Compared with the recent share price of $12.58, this implies the stock is trading at a 59.0% discount to that intrinsic value, which the model frames as materially undervalued.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests DENTSPLY SIRONA is undervalued by 59.0%. Track this in your watchlist or portfolio, or discover 868 more undervalued stocks based on cash flows.

Approach 2: DENTSPLY SIRONA Price vs Sales

For companies where cash flow and revenue are key reference points, the price-to-sales ratio (P/S) is a useful cross check on value because it ties the share price to the sales that the business is already generating.

In general, higher growth expectations or lower perceived risk can support a higher P/S multiple, while slower expected growth or higher risk usually calls for a lower, more conservative range. So what really matters is how DENTSPLY SIRONA’s current P/S compares with what you might reasonably expect for a business with its profile.

DENTSPLY SIRONA is trading on a P/S of 0.69x, compared with a Medical Equipment industry average of 3.32x and a peer average of 4.16x. Simply Wall St’s Fair Ratio for the company is 1.36x, which is its own estimate of a suitable P/S once factors like earnings growth, profit margin, market cap, industry and risk are considered together.

This Fair Ratio can be more informative than a simple peer or industry comparison because it attempts to align the multiple with the company’s specific fundamentals rather than broad group averages. With the current 0.69x P/S sitting below the 1.36x Fair Ratio, the multiple indicates that the shares appear undervalued on this measure.

Result: UNDERVALUED

P/S ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1440 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your DENTSPLY SIRONA Narrative

Earlier we mentioned that there is an even better way to understand valuation. Narratives on Simply Wall St’s Community page let you attach a clear story about DENTSPLY SIRONA to the numbers by linking your view of its future revenue, earnings and margins to a forecast and then to your own fair value. This view updates automatically when fresh news or earnings arrive, and can help you decide how to position your investment by comparing your fair value to the current price. For example, one investor might build a more optimistic DENTSPLY SIRONA Narrative closer to the higher US$24.00 analyst target, while another might lean toward the more cautious US$14.00 end. Both would be using the same shared tool used by millions of investors, but grounding their decisions in their own assumptions.

Do you think there's more to the story for DENTSPLY SIRONA? 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.