Outset Medical Valuation

OM Stock  USD 3.49  0.15  4.12%   
At this time, the company appears to be overvalued. Outset Medical holds a recent Real Value of $3.34 per share. The prevailing price of the company is $3.49. Our model determines the value of Outset Medical from analyzing the company fundamentals such as Return On Equity of -1.06, operating margin of (0.61) %, and Shares Outstanding of 18.31 M as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Outset Medical's valuation include:
Price Book
0.5048
Enterprise Value
-3.6 M
Enterprise Value Ebitda
(0.24)
Price Sales
0.5349
Enterprise Value Revenue
0.0059
Overvalued
Today
3.49
Please note that Outset Medical's price fluctuation is very risky at this time. Calculation of the real value of Outset Medical is based on 3 months time horizon. Increasing Outset Medical's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Outset stock is determined by what a typical buyer is willing to pay for full or partial control of Outset Medical. Since Outset Medical is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Outset Stock. However, Outset Medical's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  3.49 Real  3.34 Target  10.5 Hype  3.49 Naive  4.34
The intrinsic value of Outset Medical's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Outset Medical's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
3.34
Real Value
9.67
Upside
Estimating the potential upside or downside of Outset Medical helps investors to forecast how Outset stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Outset Medical more accurately as focusing exclusively on Outset Medical's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
-0.84-0.75-0.66
Details
Hype
Prediction
LowEstimatedHigh
0.173.499.82
Details
Naive
Forecast
LowNext ValueHigh
0.094.3410.67
Details
5 Analysts
Consensus
LowTarget PriceHigh
9.5610.5011.66
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Outset Medical's intrinsic value based on its ongoing forecasts of Outset Medical's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Outset Medical's closest peers.

Outset Medical Cash

33.26 Million

Outset Revenue by Product

Outset Medical Total Value Analysis

Outset Medical is now expected to have takeover value of (3.61 M) with market capitalization of 63.91 M, debt of 104.52 M, and cash on hands of 227.52 M. The negative valuation of Outset Medical may imply that the market is not capable to price the future growth of the company or it is pricing it at zero value. It may also suggest that takeover valuation may not have captured all of the outstanding debt commitments of the company both on and off balance sheet. Investors should methodically examine all of the Outset Medical fundamentals.
  Takeover PriceMarket CapDebt ObligationsCash
(3.61 M)
63.91 M
104.52 M
227.52 M

Outset Medical Investor Information

About 92.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.5. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Outset Medical has Price/Earnings To Growth (PEG) ratio of 0.06. The entity recorded a loss per share of 5.37. The firm had not issued any dividends in recent years. Outset Medical had 1:15 split on the 20th of March 2025. Outset Medical is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April.

Outset Medical Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Outset Medical has an asset utilization ratio of 45.17 percent. This suggests that the Company is making $0.45 for each dollar of assets. An increasing asset utilization means that Outset Medical is more efficient with each dollar of assets it utilizes for everyday operations.
 
Covid
 
Interest Hikes

Outset Medical Profitability Analysis

Taking into consideration Outset Medical's profitability measurements, Outset Medical may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Outset Medical's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2019-03-31
Previous Quarter
-17.8 M
Current Value
-19.5 M
Quarterly Volatility
9.5 M
 
Covid
 
Interest Hikes
At this time, Outset Medical's Gross Profit is very stable compared to the past year. As of the 1st of March 2026, Gross Profit Margin is likely to grow to 0.41, while Pretax Profit Margin is likely to drop (0.71).
For Outset Medical profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Outset Medical to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Outset Medical utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Outset Medical's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Outset Medical over time as well as its relative position and ranking within its peers.

Outset Medical Earnings per Share Projection vs Actual

By analyzing Outset Medical's earnings estimates, investors can diagnose different trends across Outset Medical's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Outset Medical is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Covid
 
Interest Hikes
Outset Medical is projected to generate -0.7525 in earnings per share on the 31st of March 2026. Outset Medical earnings estimates show analyst consensus about projected Outset Medical EPS (Earning Per Share). It derives the highest and the lowest estimates based on Outset Medical's historical volatility. Many public companies, such as Outset Medical, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Outset Medical Ownership Allocation

Outset Medical owns a total of 18.31 Million outstanding shares. The majority of Outset Medical outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Outset Medical to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Outset Medical. Please pay attention to any change in the institutional holdings of Outset Medical as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.

Outset Medical Profitability Analysis

The company generated the yearly revenue of 119.48 M. Annual Net Loss to common stockholders was (81.65 M) with gross profit of 46.75 M.

About Outset Medical Valuation

We use absolute and relative valuation methodologies to arrive at the intrinsic value of Outset Medical. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Outset Medical based exclusively on its fundamental and basic technical indicators. By analyzing Outset Medical's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Outset Medical's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Outset Medical. We calculate exposure to Outset Medical's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Outset Medical's related companies.
Last ReportedProjected for Next Year
Gross Profit46.8 M49.1 M
Pretax Profit Margin(0.68)(0.71)
Operating Profit Margin(0.56)(0.59)
Net Loss(0.68)(0.72)
Gross Profit Margin 0.39  0.41 

Outset Medical Current Valuation Indicators

Outset Medical's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Outset Medical's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Outset Medical, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Outset Medical's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Outset Medical's worth.
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Outset Medical. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.
To learn how to invest in Outset Stock, please use our How to Invest in Outset Medical guide.
You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Will Health Care Equipment & Supplies sector continue expanding? Could Outset diversify its offerings? Factors like these will boost the valuation of Outset Medical. Anticipated expansion of Outset directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Outset Medical data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Earnings Share
(5.37)
Revenue Per Share
7.855
Quarterly Revenue Growth
(0.02)
Return On Assets
(0.15)
Return On Equity
(1.06)
Outset Medical's market price often diverges from its book value, the accounting figure shown on Outset's balance sheet. Smart investors calculate Outset Medical's intrinsic value - its true economic worth - which may differ significantly from both market price and book value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. Since Outset Medical's trading price responds to investor sentiment, macroeconomic conditions, and market psychology, it can swing far from fundamental value.
It's important to distinguish between Outset Medical's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Outset Medical should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. However, Outset Medical's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.