ENVISTA HOLDINGS CORPORATION (NVST): what the price assumes

In the published model solve dated 2026-Q2, anchored at $28.65, ENVISTA HOLDINGS CORPORATION (NVST) is priced for +15.9% growth. boothcheck publishes no house fair value, target price, or buy/sell rating; individual model outputs and user-controlled scenarios are analytical inputs, not Boothcheck targets. Narrative composed 2026-06-27.

Generated: 2026-08-10 · Exported: 2026-08-12 · Source: https://boothcheck.com/report/NVST

Headline

What The Price Assumes (Inversion)

The assumption today's price embeds, recovered by inverting the valuation.

The operating-margin figure is value-band context at year 12: derived from the framework's value band, a separate calculation — not part of the priced-in solve.

Solve inputs: computed at a 8.9% cost of capital with 4% terminal growth over a 5-year stage; each 1pp of cost of capital moves the implied operating-profit growth ~7.2pp.

How unusual the bet is: within-range

Valuation X-Ray

Asset, earnings-power and peer-multiple models all land far below the price; ONLY the growth-DCF reaches it. The bet is durable compounding the static frames structurally cannot price (a moat/durability premium).

How the valuation models price the stock relative to the market price. Price/FV above 1.0 means the market pays more than that lens defends (expensive); at or below 1.0 the lens can defend the price.

Families that justify the price: Growth Families that call it expensive: Asset, Earnings, Relative

The models below discount at their own flat-beta convention rates (cost of equity 9.3%, WACC 7.8%); the inversion above states its own rate.

Per-Model Detail (n=15)

Economic-Unit Decomposition (Sum Of The Parts)

One or more material disclosed units has unresolved economics. Unknown/general is not evidence of homogeneity: segment SOTP is primary but incomplete, consolidated cash flow may remain only a secondary cross-check when every unit shares an enterprise basis, and one sector multiple or target margin is withheld.

No total common-equity value is stated. One or more material units lack a supported unit value. The displayed values are an indicative subtotal; consolidated debt and cash cannot be applied to a fraction of the company.

Solvency

Interest expense is not separately reported in the latest filings, so interest coverage cannot be computed.

Bullet Takeaways

• Envista is a dental products company spanning implants, clear-aligner orthodontics, and everyday consumables, and it has now posted four straight quarters of growth across all of its major businesses.
• The clearest risk is operating leverage off a thin base: the trailing operating margin sits around 8.5%, so the recovery thesis depends on margins expanding from a low level rather than on a fortress profitability already in place.
• Watch core growth against the macro backdrop: Q1 2026 delivered 9.5% core growth and management reaffirmed full-year guidance of 2% to 4% core growth, with dental demand and tariffs the variables most likely to swing the result.

Bull Case

The counterintuitive finding in Envista's data is that a company many investors had written off as a stalled turnaround has quietly strung together four consecutive quarters of growth across every major business. That is not what a broken dental company looks like. Q1 2026 delivered 9.5% core growth, and for the fourth straight quarter all of the major segments, implants, orthodontics, and consumables, grew together. When every part of a diversified business inflects at once, it usually signals a real operational fix rather than a single product getting lucky.

The portfolio behind that growth is genuinely strong. Envista's Specialty Products and Technologies segment, built around premium brands including Nobel Biocare implants and the Spark clear-aligner line, generated $1.6 billion of sales, and the 10-K notes that 84% of that segment's sales are direct, meaning Envista sells straight to clinicians rather than through distributors. Direct selling deepens customer relationships and captures more of the economics, and the company pairs it with what the filing describes as "a comprehensive education system to fully train our clinical customers on the use of our products." Training clinicians on a premium implant or aligner system is a quiet moat: once a practice standardizes on Envista's workflow, switching is costly.

The operating recovery is showing up in earnings and cash. Adjusted earnings rose 50% year over year in the quarter, and management reaffirmed full-year guidance that pairs core growth with double-digit adjusted EBITDA growth and roughly 100% free-cash-flow conversion. Net debt is moderate at about 1.5 times operating income, the company holds over a billion dollars of liquid assets, and the share count has edged lower. The bull case is that Envista is early in a margin-expansion recovery off a depressed base, and the relative and growth-based valuation methods already support the price for it.

Bear Case

Dental capital equipment and elective procedures are cyclical, and that is where the bear case for Envista lives. Implants and clear aligners are partly discretionary purchases for patients and practices, which means they soften when consumers tighten spending and when dentists hold off on equipment investment. The strong 9.5% core growth in Q1 2026 came against an easy comparison and a recovering base, and the market's reaction was notably cautious on exactly this point, weighing macro conditions and tariffs against the headline beat. A recovery that depends on the dental cycle staying favorable is only as durable as that cycle.

The valuation amplifies the risk because the recovery is being priced before it is fully proven. To justify the price, the inversion implies the company must grow around 17% while sustaining its margins, against a trailing operating margin of only about 8.5%. That is a demanding combination: the price requires both a high growth rate and the margin expansion that is supposed to come with it, off a base where profitability is still thin. The asset-based and earnings-power methods read the stock as expensive, with the asset methods sitting many times above book value, a reminder that there is little tangible-value floor and that the price rests on the earnings recovery continuing.

The gap between the company's own guidance and the quarter is itself a caution. Q1 posted 9.5% core growth, but management reaffirmed full-year guidance of only 2% to 4% core growth, which implies a meaningful deceleration over the rest of the year. Either the company is being conservative, or the strong start is not expected to persist; the bear reads the guidance as the more honest signal. Solvency is not the concern, with net debt around 1.5 times operating income and ample liquidity, so this is not a balance-sheet bear. It is a cyclicality-and-valuation bear: the price has already credited a full recovery, and if dental demand softens or the margin expansion stalls, the methods supporting the price reset lower.

Valuation

Envista is priced for a recovery that is underway but not yet complete, and the methods reflect that mid-transition state. The relative-multiple and growth-based methods justify the current price, while the asset-based and earnings-power methods read it as expensive. The pattern says the market is paying for the earnings recovery to continue rather than valuing the company on its still-depressed trailing profitability.

The inversion makes the demand explicit. At today's price, the implied growth is around 17% against an operating margin near 7%, set against a trailing operating margin of about 8.5%. The price is therefore betting on a high growth rate paired with margin expansion off a low base, which is precisely the turnaround thesis: Envista's operating margin sits well below where a premium dental-products company should run, and the bull and the price both assume it climbs as core growth scales. The recent quarter, with 9.5% core growth and a sharp jump in adjusted earnings, is early evidence in that direction, but the full-year guidance of 2% to 4% core growth tempers how much of the recovery is assured. The right peer set is the broader medical-device cohort, where margin trajectory and end-market cyclicality drive the multiple.

Solvency is solid enough to underwrite the recovery without strain. Net debt of about $365 million runs roughly 1.5 times operating income, the company holds over $1 billion of liquid assets, and the share count has edged down about 2% a year. The balance sheet is not the swing factor. The decisive variable is whether the margin expansion and core growth that drove the strong quarter persist: the relative and growth methods support the price if they do, and the asset and earnings methods, which already call the stock expensive, are the warning of how far the price could reset if the recovery stalls.

Catalysts

The Q1 2026 report on May 6 was a clear beat that the market received with measured optimism. Envista posted adjusted earnings per share of $0.36, up 50% year over year and 16% above consensus, on revenue of $706 million that beat forecasts. Core growth came in at 9.5%, and for the fourth consecutive quarter all of the major businesses, implants, orthodontics, and consumables, grew, supported by demand for Spark clear aligners. The stock rose modestly after the print and has gained sharply over the past year.

The execution-versus-guidance dynamic is the catalyst to watch. Management reaffirmed full-year 2026 guidance of 2% to 4% core growth, 7% to 13% adjusted EBITDA growth, adjusted EPS of $1.35 to $1.45, and roughly 100% free-cash-flow conversion. With Q1 core growth well above the full-year range, each subsequent quarter will test whether the strong start was front-loaded or whether the company has set a conservative bar it can beat. The pace of margin expansion is the related signal, since the recovery thesis rests on profitability climbing from a low base.

The external swing factors are macro demand and tariffs. Analysts and the market flagged caution on both, given that dental procedures and equipment purchases are partly discretionary and that the company sources globally. Recent Street research has nudged price targets and recalibrated forward earnings assumptions, reflecting a mix of optimism about stabilizing dental end markets and caution about execution and valuation. The next several quarters of core growth, the trajectory of margins, and any shift in the dental demand environment are the developments most likely to move the stock.

Peer Cohorts (Per Segment, With Filing Citations)

Specialty Products & Technologies (reported)

• XRAY (DENTSPLY SIRONA Inc.)
• FY2025 10-K: Technology Solutions, (2) Essential Dental Solutions, (3) Orthodontic and Implant Solutions, and (4) Wellspect Healthcare. For the year ended December 31, 2025, the Company's net sales disaggregated by reportable segment and the product categories of these reportable segments as a percent of net sales were as follows:…
• FY2025 10-K: …or new products introduced by competitors; • customer product needs and preferences and customer/patient lifecycle; and • patient reimbursement trends which could lead to a drop in patient volumes at our customers' dental practices. If we fail to innovate existing technologies or develop new technologies consistent…
• STE (STERIS plc)
• FY2025 10-K: …changes for comparability, as required. For more information, refer to Note 4 titled, "Discontinued Operations." Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income. Our Healthcare segment provides a comprehensive…
• FY2025 10-K: …maintain, upgrade, repair, and troubleshoot capital equipment throughout the world. We offer various preventive maintenance programs and repair services to support the effective operation of capital equipment over its lifetime. Our Healthcare segment also provides comprehensive instrument, devices, and endoscope…
• ZBH (ZIMMER BIOMET HOLDINGS, INC.)
• FY2025 10-K: …for our knees, hips, and S.E.T. products, our major competitors include Johnson & Johnson MedTech (formerly the DePuy Synthes Companies of Johnson & Johnson), Stryker Corporation and Smith & Nephew plc. There are smaller competitors in these product categories as well that focus on smaller subsegments of the…
• FY2025 10-K: S.E.T. product category net sales in 2025. Our CMFT product division includes face and skull reconstruction products as well as products that fixate and stabilize the bones of the chest in order to facilitate healing or reconstruction after open heart surgery, trauma or for deformities of the chest. CMFT products…
• COO (The Cooper Companies, Inc.)
• FY2025 10-K: …price), which includes estimates of variable consideration for which reserves are established and which result from discounts, returns, chargebacks, rebates and other allowances that are offered within contracts between the Company and its Customers, health care providers, payors and other indirect customers relating…
• FY2025 10-K: …Company sells its products principally to a limited number of distributors, group purchasing organizations, eye care or health care professionals including independent practices, corporate retailers, hospitals and clinics or authorized resellers (collectively, its Customers). These Customers may subsequently resell…
• BLCO (Bausch & Lomb Corp)
• FY2025 10-K: …and individual projects are in various stages of pre-clinical and clinical development, including new contact lenses for myopia, next-generation cataract equipment, premium IOLs, investigational treatments for dry eye, novel formulation for eye vitamins and preservative free formulation of eye drops, among others,…
• FY2025 10-K: …throughout the world in locations in which we operate our business. These proposed changes may also continue to result in pricing pressures relating to sales, promotions and reimbursement of our product portfolio. We continually review newly enacted and proposed U.S. federal and state legislation, as well as proposed…
• MMSI (MERIT MEDICAL SYSTEMS INC)
• FY2025 10-K: …inflation devices and hemostasis valves, including the BasixSKY®, BasixCompak®, basixTOUCH®, Blue Diamond® and DiamondTouch™ inflation devices, the PhD™ Hemostasis Valve, and the 10Fore™ Hemostasis Valve, the latest addition to our hemostasis valve portfolio. 6 Table of Contents Custom Procedural Solutions Our custom…
• FY2025 10-K: The products in our intervention (peripheral) portfolio are chiefly used to remove blood clots, retrieve foreign bodies in blood vessels and assist with placing balloons and stents to treat arterial disease. The principal product offerings in our intervention (peripheral) portfolio include our: ● ClariVein® Specialty…
• HAE (HAEMONETICS CORPORATION)
• FY2025 10-K: …collection and manufacturing processes. As a result, we aim to design equipment that is durable, dependable, and easy to use and to provide comprehensive training and support to help our customers optimize their plasma collections. Today, nearly all source plasma collections worldwide are performed using automated…
• FY2025 10-K: European company with Chinese manufacturing that competes in select European countries as well. In the field of plasma related software, we principally compete with applications developed internally by certain of our customers. • Blood Center Most donations worldwide are manual whole blood collections. Our recently…
• ICUI (ICU MEDICAL INC/DE)
• FY2025 10-K: …reliability, patent protection, ease of use and the pricing of our products, in addition to the access to distribution channels. We encounter significant competition in this market both from global, large, established medical device manufacturers and from smaller companies. We compete with products and systems…
• FY2025 10-K: …health record ("EHR"), asset tracking systems, and alarm notification platforms to further enhance infusion safety and efficiency. • PharmGuard™ medication safety software for Medfusion 4000 syringe and CADD-Solis™ pumps allows for customized drug libraries to support the standardization of protocols for medication…

Equipment & Consumables (reported)

• XRAY (DENTSPLY SIRONA Inc.)
• FY2025 10-K: …each segment during development of the annual operating plan and the regular forecasting process. Additionally, the CODM considers budget-to-actual variances for these measures on a quarterly basis as well as segment-specific forecasting when making decisions about the allocation of operating and capital resources to…
• FY2025 10-K: Technology Solutions, (2) Essential Dental Solutions, (3) Orthodontic and Implant Solutions, and (4) Wellspect Healthcare. For the year ended December 31, 2025, the Company's net sales disaggregated by reportable segment and the product categories of these reportable segments as a percent of net sales were as follows:…
• ALGN (ALIGN TECHNOLOGY, INC.)
• FY2025 10-K: …on our business and financial results. Our Systems and Services segment is subject to software and hardware risks related to the manufacturing, design, quality and safety of our complex, global installed base of iTero intraoral scanners, which are continually updated to add, expand or improve features with new…
• FY2025 10-K: …for estimating usage rates requires significant judgment and evaluation of inputs, including historical usage data by region, country and channel. We recognize revenue upon shipment, as the customers obtain physical possession and we have enforceable rights to payment. We have made an accounting policy election to…
• STE (STERIS plc)
• FY2025 10-K: …maintain, upgrade, repair, and troubleshoot capital equipment throughout the world. We offer various preventive maintenance programs and repair services to support the effective operation of capital equipment over its lifetime. Our Healthcare segment also provides comprehensive instrument, devices, and endoscope…
• FY2025 10-K: …unbilled. We may obtain and perfect a security interest in products sold in the United States when we have a concern with the Customer's risk profile. We maintain an allowance for uncollectible accounts receivable for estimated losses in the collection of amounts owed by Customers. We estimate the allowance based on…

Methodology Note

• Priced-in inversion: the valuation is inverted on the current price to recover the operating-income growth, duration, and steady-state margin the price embeds (ROE for financials, FFO growth for REITs).
• Valuation x-ray: the valuation models, grouped into four families (asset, earnings, relative, growth). Each model is expressed as a price/FV ratio (distance from price), not a point fair-value estimate. The spread across families is the disagreement.
• Economic-unit decomposition (SOTP): each disclosed business unit is assigned its native valuation basis before any multiple is applied. Operating units are valued on enterprise value; funded financial units are valued on their own common equity, because their borrowings fund earning assets rather than levering the parent. A company total is stated only once every material unit carries a supported value and the parent capital bridge reconciles.
• Solvency: net cash/debt, net-debt-to-NOPAT, interest coverage, and share-count CAGR from EDGAR financials (net debt / FFO and fixed-charge coverage for REITs; regulatory-capital framing for financials).
• Peer cohorts: per-segment comparables with deep-linkable SEC filing citations.

Fundamentals sourced from SEC EDGAR filings. Current price from Databento. The priced-in inversion and valuation x-ray are computed by the boothcheck engine; narrative composed by AI from the structured data.