• If you are wondering whether LeMaitre Vascular at around US$86.54 is still a fair entry point or starting to look expensive, you are in the right place.
• The stock has had a mixed return profile, with a 0.2% move over the last week, 1.8% over the last month, 7.9% year to date, but an 11.3% decline over the past year and longer term returns of 82.0% over three years and 84.5% over five years.
• Recent attention on LeMaitre Vascular has been shaped by ongoing interest in medical devices and vascular care, as investors consider how specialized healthcare companies might fit into their portfolios. This context helps explain why shorter term price moves can look quite different to the longer term track record.
• On our checklist of six valuation tests, LeMaitre Vascular scores a 1 out of 6. Next we look at what traditional valuation methods say about that score, before finishing with a more holistic way to think about the company’s value.

LeMaitre Vascular scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: LeMaitre Vascular Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model takes estimates of a company’s future cash flows and discounts them back to today’s dollars, to arrive at an estimate of what the business could be worth right now.

For LeMaitre Vascular, the model used is a 2 Stage Free Cash Flow to Equity approach, working off last twelve months free cash flow of about $65.6 million. Analysts provide free cash flow estimates out to 2030, with Simply Wall St extrapolating further to 2035. For example, projected free cash flow in 2030 is $79.2 million, with interim years such as 2026 and 2027 sitting in the $60 million to $70 million range, all in $.

When all these projected cash flows are discounted back, the model arrives at an estimated intrinsic value of about $68.78 per share. Compared with the current share price of around $86.54, the DCF output suggests the stock is about 25.8% overvalued on this set of assumptions.

Result: OVERVALUED

Our Discounted Cash Flow (DCF) analysis suggests LeMaitre Vascular may be overvalued by 25.8%. Discover 52 high quality undervalued stocks or create your own screener to find better value opportunities.

Approach 2: LeMaitre Vascular Price vs Earnings

For a profitable company like LeMaitre Vascular, the P/E ratio is a useful way to think about what you are paying for each dollar of earnings. Higher growth expectations and lower risk usually justify a higher P/E, while slower growth or higher uncertainty tend to align with a lower, more conservative P/E.

LeMaitre Vascular currently trades on a P/E of 36.8x. That sits above the broader Medical Equipment industry average P/E of 33.2x, but below the peer group average of 40.7x. On the surface, that puts the stock somewhere between the wider industry and closer peers.

Simply Wall St’s Fair Ratio metric suggests a P/E of 19.8x might be more in line with LeMaitre Vascular’s own characteristics, including its earnings growth profile, profit margins, industry, market cap and company specific risks. This Fair Ratio can be more informative than a simple peer or industry comparison because it is tailored to the company rather than a broad group of competitors. Since the current P/E of 36.8x sits well above the Fair Ratio of 19.8x, the multiple based view points to the shares looking expensive on these inputs.

Result: OVERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies.

Upgrade Your Decision Making: Choose your LeMaitre Vascular Narrative

Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, where you create a simple story for LeMaitre Vascular that links your view of its business, your forecast for revenue, earnings and margins, and the fair value you think those numbers support. You can then compare that fair value to today’s price, all within an accessible tool on Simply Wall St’s Community page that updates automatically when new information such as news or earnings is added. Two investors might both look at LeMaitre Vascular but reach very different conclusions, with one Narrative leaning closer to the higher fair value of about US$120.00 and another leaning closer to the lower fair value of about US$92.00.

Do you think there's more to the story for LeMaitre Vascular? 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.