DXCM · Intrinsic value
Is DexCom, Inc. (DXCM) overvalued or undervalued?
DexCom, Inc. (DXCM) trades at the delayed market price of $85.74 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $55.74 a share (54% above fair value), as of Oct 20, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 20, 2026 · How these pages are made
Is DXCM overvalued?
- Fair value
- $55.74
- Market price
- $85.74
- Downside to fair value
- 35.0%
- Verdict
- 54% above fair value
Reverse DCF, on our cash-flow model rather than the fair value above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is DXCM's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Healthcare companies in US
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 34 of 100
Cheaper than 34% of Healthcare companies in US
- Price vs worth · 22 of 100
- Quality · 76 of 100
More profitable than 76% of Healthcare companies in US
- Financial health · 56 of 100
Financially stronger than 56% of Healthcare companies in US
- Growth · 54 of 100
Growing faster than 54% of Healthcare companies in US
- Momentum · 63 of 100
Outperformed 63% of Healthcare companies in US over the past year
Confidence: Medium confidence · Scored
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DXCM DCF valuation: what the price assumes
At a recent price of $85.74, DexCom, Inc. (DXCM) trades 54% above TickerWorth's blended fair value of $55.74 per share. For this company that blend leans on peer multiples: our discounted-cash-flow model holds margins flat and fades growth toward a long-run rate, which systematically understates a business growing this fast, so its figure (about $23.00) is shown as a reference beside the range rather than blended into it. Our estimate sits below the market — read that as a statement about how the market prices DXCM against comparable companies, not as a finding that it is overvalued on cash flow. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts DexCom, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 11.8%, with a long-run terminal growth rate of 2.5%. About 65% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — DXCM would need sustained revenue growth of more than 25%/yr to justify today's price, against about 11.2% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, DXCM's modeled DCF value ranges from about $19.08 to $29.75 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what DexCom, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of DXCM's intrinsic value. Figures update as new filings and prices come in.
Every input behind DXCM's DCF
| Input | Value |
|---|---|
| Base-year revenueDEXCOM, INC. FY2025 10-K (accession 0001093557-26-000027): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $4,662,000,000 |
| Base EBIT marginDEXCOM, INC. FY2025 10-K (accession 0001093557-26-000027): us-gaap:OperatingIncomeLoss 911,800,000 / revenue 4,662,000,000 = 19.56%, FY2025. | 19.6% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 19% → 15% → 11% → 8% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.48 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesDEXCOM, INC. FY2025 10-K (accession 0001093557-26-000027): WeightedAverageNumberOfDilutedSharesOutstanding = 405,500,000 shares, FY2025. | 406M |
| Market priceBackup price feed · as of 2026-10-20 23:06 UTC | $85.74 |
Change DXCM's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does DexCom, Inc. do?
What does it do?
DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems for the management of diabetes and metabolic health in the United States and internationally. The company offers Dexcom G7 and G7 15 Day, an integrated continuous glucose monitoring system; Dexcom G6, a CGM system; Dexcom ONE+ to replace fingerstick blood glucose testing for diabetes treatment decisions; Stelo, a biosensor designed for adults with prediabetes and Type 2 diabetes who do not use insulin; Dexcom Share, a remote monitoring system; and Dexcom Follow application. It operates in the Medical Devices industry (Healthcare sector), headquartered in United States. The company employs roughly 11,000 people.
How does it make money?
The business turns $4.7B in annual revenue into profit. Out of every $100 of sales, about $24 is left as operating profit (operating margin of 24.3%), after a 62% gross margin on the products/services it sells. After all costs, taxes and interest, 20.1% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: carries modest debt (0.5× equity), comfortably covers its short-term bills (1.7× current ratio), and is currently profitable.
Who at DXCM filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| Brown Michael Jon | EVP Chief Legal Compliance Off | Open-market sale | $145,316.00 | Form 4 for Brown Michael Jon (opens sec.gov in a new tab) | |
| Stern Sadie | EVP Chief People & Culture Off | Open-market sale | $220,974.75 | Form 4 for Stern Sadie (opens sec.gov in a new tab) | |
| AUGUSTINOS NICHOLAS | Director | Open-market sale | $549,537.56 | Form 4 for AUGUSTINOS NICHOLAS (opens sec.gov in a new tab) | |
| Brown Michael Jon | EVP Chief Legal Compliance Off | Open-market sale | $142,868.00 | Form 4 for Brown Michael Jon (opens sec.gov in a new tab) | |
| AUGUSTINOS NICHOLAS | Director | Open-market sale | $130,231.00 | Form 4 for AUGUSTINOS NICHOLAS (opens sec.gov in a new tab) | |
| Sylvain Jereme M | EVP, Chief Financal Officer | Open-market sale | $302,936.26 | Form 4 for Sylvain Jereme M (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is DXCM's intrinsic value?
TickerWorth's blended fair value for DexCom, Inc. (DXCM) is $55.74 per share, versus a market price of $85.74 (54% above fair value).
Is DXCM overvalued or undervalued?
Our cash-flow model understates a business growing this fast, so we don't call DXCM overvalued on it. Against a blend that leans on peer multiples, the price of $85.74 sits 54% above our estimate. This is an educational estimate, not advice.
What discount rate is used for DXCM?
A WACC of 11.8% and a terminal growth rate of 2.5%.
Is DexCom stock undervalued?
TickerWorth's fair value for DexCom, Inc. (DXCM) is $55.74 against a market price of $85.74. Our read: 54% above fair value. This is a model estimate, not investment advice.
DexCom (DXCM) DCF valuation and fair value
Our fair value for DexCom, Inc. (DXCM) is $55.74, built on a 11.8% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into DexCom stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $85.74. A model estimate, not investment advice.
DexCom (DXCM) insider trading
The most recent insider filing (SEC Form 4) for DexCom, Inc. (DXCM): Brown Michael Jon, EVP Chief Legal Compliance Off, open-market sale on 2026-10-15. The latest filings are listed on this page. A disclosure, not a signal to trade.
Stocks below our fair value instead
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.
Save this valuation
DXCM goes on your watchlist, where its valuation is re-run as new filings land — so you read the current number, not the one from today.