Is Dentsply Sirona (XRAY) Offering An Opportunity After Multi Year Share Price Slump

• If you are wondering whether DENTSPLY SIRONA is attractively priced at its current level, this article walks through what the numbers say about the stock’s value.
• The share price last closed at US$11.54, with returns of a 9.4% decline over 7 days, a 10.9% decline over 30 days, a 2.4% gain year to date, and a 22.2% decline over 1 year. The 3 year and 5 year returns stand at a 65.8% decline and a 79.5% decline respectively.
• These moves have kept DENTSPLY SIRONA in focus for investors watching how the market is reassessing dental equipment and healthcare names, particularly those with longer term share price pressure. While the short term swings can grab attention, the bigger question is whether the current price reflects the company’s fundamentals.
• On Simply Wall St’s valuation checks, DENTSPLY SIRONA scores a full 6 out of 6 for being assessed as undervalued across each metric. This sets up a closer look at standard valuation methods such as discounted cash flow (DCF) and multiples, followed by an even more rounded way to think about valuation that we will come back to at the end of the article.

Find out why DENTSPLY SIRONA's -22.2% return over the last year is lagging behind its peers.

Approach 1: DENTSPLY SIRONA Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a business might be worth today by projecting its future cash flows and then discounting those back into today’s dollars.

For DENTSPLY SIRONA, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $87.0 million. Analysts and extrapolations feed into a forecast that free cash flow could reach $575.3 million in 2035, with interim projections such as $206.0 million in 2026, $333.0 million in 2028 and $386.0 million in 2029. Simply Wall St notes that analyst inputs typically cover up to 5 years, with later years extrapolated from those earlier trends.

When these projected cash flows are discounted back to today under the DCF model, the resulting estimated intrinsic value comes out at about $29.11 per share. Compared with the recent share price of $11.54, this implies the stock screens as 60.4% undervalued on this methodology.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests DENTSPLY SIRONA is undervalued by 60.4%. Track this in your watchlist or portfolio, or discover 48 more high quality undervalued stocks.

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

Approach 2: DENTSPLY SIRONA Price vs Sales

For companies where profitability is not clearly reflected in earnings, P/S is often a useful cross check because it anchors valuation to the revenue line rather than accounting profit. Investors usually expect higher P/S multiples when they see stronger revenue growth potential or lower risk, and lower P/S multiples when growth expectations or perceived risk look less favorable.

DENTSPLY SIRONA currently trades on a P/S of 0.63x. That sits well below the Medical Equipment industry average P/S of 2.77x and the peer group average of 3.64x. On the surface, the stock is priced at a discount to both its sector and peers on this measure.

Simply Wall St also calculates a proprietary “Fair Ratio” for DENTSPLY SIRONA of 1.25x. This is designed to be a more tailored anchor than a simple industry or peer comparison, because it incorporates factors such as the company’s earnings growth profile, risk characteristics, profit margins, industry, and market capitalization. When you compare the current 0.63x P/S to the 1.25x Fair Ratio, the market price screens materially below that customised benchmark.

Result: UNDERVALUED

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Upgrade Your Decision Making: Choose your DENTSPLY SIRONA Narrative

Earlier we mentioned that there is an even better way to understand valuation. On Simply Wall St’s Community page you can use Narratives, which let you attach a clear story about DENTSPLY SIRONA to hard numbers like your assumed fair value, future revenue, earnings and margins. The platform then automatically links that story to a forecast and a fair value you can compare with today’s price to help you decide whether you think the stock looks expensive or cheap. Those Narratives update as new news or earnings arrive, and different investors can express very different views. For example, one Narrative treats DENTSPLY SIRONA as worth around US$11.00 based on more cautious assumptions, while another sees fair value closer to US$22.13 on more optimistic expectations.

For DENTSPLY SIRONA, however, we will make it really easy for you with previews of two leading DENTSPLY SIRONA Narratives:

🐂 DENTSPLY SIRONA Bull Case

Fair value in this bull case narrative: US$45.50 per share

Implied discount to the narrative fair value versus the last close of US$11.54, using the Simply Wall St method: about 75% undervalued

Revenue growth assumption used in this narrative: 1.93%

• Frames DENTSPLY SIRONA as a durability story, with demand tied to recurring dental procedures and practice economics rather than headline-driven momentum.
• Highlights the role of long life equipment, steady consumables and workflow-focused technology as support for predictable cash generation and sticky customer relationships.
• Suggests the key questions for investors are around consistent execution, capital allocation and resilience of dental demand across cycles.

🐻 DENTSPLY SIRONA Bear Case

Fair value in this bear case narrative: US$11.00 per share

Implied premium to the narrative fair value versus the last close of US$11.54: about 5% overvalued

Revenue growth assumption used in this narrative: 1.78%

• Focuses on risks from rising competition, cost pressure and digital alternatives that could weigh on DENTSPLY SIRONA's pricing power and margins over time.
• Flags governance history, consolidation among dental groups and regulatory costs as ongoing headwinds that could keep earnings under pressure.
• Notes that even within this cautious view, there are potential offsets from product development, efficiency efforts and longer term dental demand trends, so investors may want to test the assumptions against their own expectations.

If you want to see how these stories are built and decide which one feels closer to your own view on DENTSPLY SIRONA, Curious how numbers become stories that shape markets? Explore Community Narratives.

Do you think there's more to the story for DENTSPLY SIRONA? Head over to our Community to see what others are saying!

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.

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