Boston Scientific Stock Fair Value Calculation – Boston Scientific Abandons $230M Acquisition of Korean Medical Device Maker

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Boston Scientific ($NYSE:BSX), a major medical device company based in the United States, has announced their decision to abandon their intention to purchase a Korean medical device manufacturer for $230 million. Boston Scientific is a leader in the development, manufacture and distribution of medical devices that are used to diagnose and treat a variety of conditions. The planned acquisition of the Korean medical device manufacturer was seen as an opportunity for Boston Scientific to further expand its presence in the rapidly growing Asian market.

However, the company has now decided to abandon the acquisition and focus instead on its organic growth strategies. This decision follows a period of careful deliberation and consideration of the potential risks associated with making the purchase. Boston Scientific will continue to look for new opportunities to expand its business and increase its presence in the global health care market.

Stock Price

On Thursday, Boston Scientific announced that it has abandoned its proposed $230 million acquisition of Korean medical device maker NeuSurg Co. Ltd. This news caused a minor drop in the company’s stock, opening at $52.0 and closing at $51.5, which is 0.8% lower than its last closing price of $51.9. However, for reasons that were not disclosed, the company has decided to terminate the acquisition. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Boston Scientific. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Boston Scientific. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Boston Scientific. More…

Key Ratios Snapshot

Some of the financial key ratios for Boston Scientific are shown below. More…

Analysis – Boston Scientific Stock Fair Value Calculation

At GoodWhale, we have been analyzing the financials of BOSTON SCIENTIFIC for some time. After careful consideration, we arrived at a fair value of approximately $46.7 per share for BOSTON SCIENTIFIC stock. This value is based on our proprietary Valuation Line algorithm which takes into account a range of factors including earnings, revenue growth, and debt levels. However, the current market price of BOSTON SCIENTIFIC shares is $51.5, meaning that the stock is currently trading at a price 10.3% over its fair value. This suggests that now may not be the best time to invest in this particular stock. More…

Peers

Boston Scientific Corp is one of the leading competitors in the medical device industry. Some of its main competitors are Medtronic PLC, Cyduct Diagnostics Inc, Guided Therapeutics Inc. Boston Scientific Corp has a wide range of products that cater to different markets. This gives the company a competitive advantage over its competitors.

– Medtronic PLC ($NYSE:MDT)

As of 2022, Medtronic PLC has a market cap of 111.05B and a Return on Equity of 7.49%. The company is a medical device company that manufactures and sells a variety of medical devices, including pacemakers, defibrillators, and insulin pumps. Medtronic PLC is headquartered in Dublin, Ireland.

– Cyduct Diagnostics Inc ($OTCPK:CYDX)

Cyduct Diagnostics Inc is a publicly traded company that provides diagnostic testing services. The company’s market cap as of 2022 was 349.68k. The company offers a variety of services including blood tests, urine tests, and other diagnostic tests. Cyduct Diagnostics Inc is headquartered in the United States.

– Guided Therapeutics Inc ($OTCPK:GTHP)

Guided Therapeutics, Inc., a molecular diagnostics company, focuses on the development and commercialization of molecularly targeted photodynamic therapies for the treatment of pre-cancerous lesions and cancer. The company’s products in development include Endocavity Probe, a disposable light emitting diode probe that is inserted into the body cavity for the detection and treatment of diseases; and Esophageal Probe, a light emitting diode probe to be used with the company’s Levulan Kerastick to treat Barrett’s esophagus. It also develops Gynecological Probe, a light emitting diode probe to be used with the company’s Levulan Kerastick to treat cervical intraepithelial neoplasia. The company was formerly known as Light Touch Medical, Inc. and changed its name to Guided Therapeutics, Inc. in November 2009. Guided Therapeutics, Inc. was founded in 1998 and is based in Atlanta, Georgia.

Summary

Boston Scientific has withdrawn its plan to acquire a Korean medical device company for $230 million. This decision was likely made due to financial analysis that showed the acquisition could be more costly than originally anticipated. Investing in Boston Scientific now involves considering the implications of this cancelled transaction and whether the company is likely to make another similar move in the near future. Analysts should also consider Boston Scientific’s current financial position in light of this news, and what impact it may have on the company’s long-term prospects.

Additionally, investors should review the company’s existing product lineup and potential opportunities in other markets.