DXCM
Dexcom Inc
Price:  
82.94 
USD
Volume:  
2,782,215
United States | Health Care Equipment & Supplies

Dexcom Fair Value

-58.9 %
Upside

What is the fair value of Dexcom?

As of 2025-07-08, the Fair Value of Dexcom Inc (DXCM) is 34.12 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 82.94 USD, the upside of Dexcom Inc is -58.9%.

Is Dexcom a good investment?

With the market price of 82.94 USD and our fair value calculation, Dexcom Inc (DXCM) is not a good investment. Investing in Dexcom stocks now will result in a potential loss of 58.9%.

82.94 USD
Stock Price
34.12 USD
Fair Price
FAIR VALUE CALCULATION

Dexcom Fair Value

Peter Lynch's formula is:

Dexcom Fair Value
= Earnings Growth Rate x TTM EPS
Dexcom Fair Value
= 25 x 1.36
Dexcom Fair Value
= 34.12

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income549.7216.9341.2541.5576.2445
YoY growth443.7%-60.5%57.3%58.7%6.4%101.1%

Dexcom Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Edwards Lifesciences Corp44,9867.1178.18132.3%
Resmed Inc37,5979220.59-14%
Steris plc22,9246.3156.4-33%
Insulet Corp21,1605.7142.89-52.5%
Zimmer Biomet Holdings Inc18,3154.6115.3824.6%
ABIOMED Inc17,1815.9147.9-61.2%
Varian Medical Systems Inc16,2624.220.89-88.2%
Hologic Inc14,3452.562.45-3%
Teleflex Inc5,1563.416.9-85.5%
Conmed Corp1,6073.895.9584.8%

Dexcom Fair Value - Key Data

Market Cap (mil)32,522
P/E60.8x
Forward P/E45.3x
EPS1.36
Avg earnings growth rate101.1%
TTM earnings535

Dexcom Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.