Is It Time To Reconsider DENTSPLY SIRONA (XRAY) After Years Of Share Price Weakness
DENTSPLY SIRONA, Inc. XRAY | 11.91 | +0.08% |
- Wondering if DENTSPLY SIRONA is trading at an attractive price right now? This article focuses squarely on what the current share price might imply about value.
- The stock last closed at US$11.86, with recent returns showing a 2.0% gain over 7 days, a 6.5% decline over 30 days, a 5.2% gain year to date, and a 2.7% decline over the past year, alongside deeper 3 year and 5 year declines of 68.6% and 79.6%.
- These moves sit against a backdrop where longer term shareholders have seen significant value erosion, which can change how investors think about risk and required returns today. For anyone looking at the current price, that history is an important part of the context.
- DENTSPLY SIRONA currently has a valuation score of 6/6, and the sections that follow will walk through what different valuation approaches say about that score, before finishing with a broader way to think about what the market is really pricing in.
Approach 1: DENTSPLY SIRONA Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what a business could be worth by projecting its future cash flows and discounting them back to today’s value using a required rate of return.
For DENTSPLY SIRONA, the model used is a 2 Stage Free Cash Flow to Equity approach. The company’s latest twelve month free cash flow is about $87.0 million. Analysts provide specific free cash flow estimates for the next few years, and Simply Wall St then extrapolates these further out. On this basis, projected free cash flow for 2029 is $386.0 million, with intermediate years such as 2026 to 2028 ranging from $237.5 million to $333.0 million before discounting.
When all these projected cash flows are discounted back and combined, the model outputs an estimated intrinsic value of about $28.95 per share. Compared with the recent share price of $11.86, the DCF suggests the stock is around 59.0% undervalued according to this set of assumptions.
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 62 more high quality undervalued stocks.
Approach 2: DENTSPLY SIRONA Price vs Sales
For companies where profitability is mixed or earnings are less reliable, the P/S ratio is often a useful way to compare what the market is paying for each dollar of revenue. It sidesteps some of the accounting noise in earnings, while still reflecting how investors weigh growth potential and business risk.
Higher growth expectations or lower perceived risk can justify a higher “normal” P/S multiple, while slower expected growth or higher risk usually means a lower one. DENTSPLY SIRONA currently trades on a P/S of 0.64x. That sits well below the Medical Equipment industry average P/S of 2.64x and also below the peer group average of 3.65x.
Simply Wall St’s Fair Ratio for DENTSPLY SIRONA is 1.16x. This is a proprietary estimate of what the P/S multiple could be given factors such as the company’s earnings growth profile, industry, profit margins, market cap and risk characteristics. Compared with simple peer or industry comparisons, the Fair Ratio aims to adjust for these company specific inputs rather than assuming all firms deserve similar multiples.
With the current P/S of 0.64x sitting below the Fair Ratio of 1.16x, the stock appears undervalued on this measure.
Result: UNDERVALUED
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Upgrade Your Decision Making: Choose your DENTSPLY SIRONA Narrative
Earlier it was mentioned that there is an even better way to understand valuation, so Narratives are introduced here as simple stories you can choose or build that connect your view of DENTSPLY SIRONA’s business to explicit forecasts and a Fair Value. You can then compare that to today’s price to help decide whether to buy, hold, or sell, all within the Simply Wall St Community page where they update automatically when new earnings, news, or guidance arrive. Different investors can sit anywhere between a more optimistic view with a Fair Value of US$45.50 and revenue growth assumptions of about 1.9% and profit margins of about 13.7%, or a more cautious view closer to US$11.00 with lower margin assumptions. This makes it clear how differing expectations about future revenue, earnings and margins directly translate into different fair values for the same stock.
For DENTSPLY SIRONA however we will make it really easy for you with previews of two leading DENTSPLY SIRONA Narratives:
Fair Value: US$45.50
Implied discount to Fair Value vs last close: 73.9% undervalued
Revenue growth assumption: 1.93%
- Frames XRAY as a durability story tied to recurring dental procedures, practice economics, and long equipment replacement cycles.
- Emphasizes the role of consumables and service as a recurring cash flow anchor that supports relationships with dental practices.
- Highlights an approach that values stability, compatibility, and incremental product improvements over rapid disruption.
Fair Value: US$11.00
Implied premium to Fair Value vs last close: 7.8% overvalued
Revenue growth assumption: 1.78%
- Focuses on pressure from lower cost competitors, healthcare cost controls, and consolidation in dental service organizations.
- Flags governance and regulatory issues as ongoing sources of higher costs and earnings risk.
- Builds a cautious Fair Value around analyst assumptions for modest revenue growth, thinner margins, and a lower P/E multiple.
If you want to go beyond previews and see how other investors are joining these dots around growth, margins, and fair value, the full set of community views on XRAY is a useful next step, starting with See what the community is saying about DENTSPLY SIRONA.
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.
