Is It Time To Reassess Globus Medical (GMED) After Mixed Returns And DCF Upside?

Simply Wall St

Tue, February 17, 2026 at 5:10 AM GMT+9 4 min read

In this article:

GMED

+1.00%

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE.

If you are wondering whether Globus Medical is attractively priced or not, this article walks through the numbers so you can judge the stock's value with more confidence.

At a last close of US$88.09, the share price comes with mixed recent returns, including 0.6% over 7 days, a 5.8% decline over 30 days, 0.9% year to date, 5.0% over 1 year, 46.4% over 3 years and 38.0% over 5 years.

Investors have been watching Globus Medical as it continues to feature in ongoing coverage of the spine and orthopedics sector, along with broader discussions about how medical device companies are being priced relative to their peers. These themes help frame the recent share price moves and set up a closer look at what the current valuation might be implying.

On our checks, Globus Medical scores 5 out of 6 on valuation, giving it a value score of 5. Next we look at how different valuation methods arrive at that result, before finishing with a way to put those numbers into an even richer context.

Globus Medical delivered 5.0% returns over the last year. See how this stacks up to the rest of the Medical Equipment industry.

Approach 1: Globus Medical Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model takes the cash a company is expected to generate in the future and then discounts those amounts back to today to estimate what the business might be worth right now.

For Globus Medical, the model used here is a 2 Stage Free Cash Flow to Equity approach. The company’s last twelve months Free Cash Flow is around $573.8 million. Analysts provide explicit forecasts out to 2027, with Free Cash Flow projected at $672.7 million, and Simply Wall St extends those projections out to 2035, with annual estimates ranging from about $355.7 million in 2026 to $939.8 million in 2035, all discounted back to today.

Bringing all those discounted cash flows together, the model arrives at an estimated intrinsic value of about $118.52 per share. Compared with the recent share price of $88.09, this implies the stock is 25.7% undervalued according to this DCF framework.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Globus Medical is undervalued by 25.7%. Track this in your watchlist or portfolio, or discover 54 more high quality undervalued stocks.

GMED Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Globus Medical.

Approach 2: Globus Medical Price vs Earnings

For a profitable business like Globus Medical, the P/E ratio is a straightforward way to see how much investors are paying for each dollar of earnings. It lets you compare companies of different sizes using a single, earnings based yardstick.

Story Continues  

What counts as a “normal” P/E depends on what the market expects for growth and how risky those earnings look. Higher expected growth or lower perceived risk can support a higher P/E, while lower growth or higher risk usually point to a lower one.

Globus Medical currently trades on a P/E of about 27.8x. That sits below the Medical Equipment industry average of roughly 30.4x and well below the peer group average of about 52.1x. Simply Wall St also calculates a proprietary “Fair Ratio” for Globus Medical of 24.0x, which is the P/E it would expect given factors like the company’s earnings growth profile, industry, profit margins, market cap and risk characteristics.

This Fair Ratio is more tailored than a simple peer or industry comparison because it adjusts for Globus Medical’s specific fundamentals rather than treating all companies as if they deserve the same multiple. With the shares at 27.8x versus a Fair Ratio of 24.0x, the stock screens as slightly expensive on this metric.

Result: OVERVALUED

NYSE:GMED P/E Ratio as at Feb 2026

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 23 top founder-led companies.

Upgrade Your Decision Making: Choose your Globus Medical Narrative

Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, where you connect your story about Globus Medical to a set of revenue, earnings and margin assumptions, link that to a forecast and Fair Value, and then compare it with the current price using an easy tool on Simply Wall St’s Community page. This tool updates as new news or earnings arrive. For example, one investor might lean toward a Fair Value near US$65 if they focus on integration risks and slower growth. Another might anchor closer to US$106 if they expect stronger adoption of Globus Medical’s technologies and higher margins. Both can see clearly how their different views translate into different Fair Values relative to the live share price.

Do you think there’s more to the story for Globus Medical? Head over to our Community to see what others are saying!

NYSE:GMED 1-Year Stock Price Chart

_ 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._

Companies discussed in this article include GMED.

Have feedback on this article? Concerned about the content? Get in touch with us directly._ Alternatively, email editorial-team@simplywallst.com_

Terms and Privacy Policy

Privacy Dashboard

More Info