Tandem Diabetes Care, Inc.

TNDM

HealthcareMedical - DevicesNASDAQ

$14.69

Market Cap: $1.01B

Tandem Diabetes Care, Inc. (TNDM) Valuation Summary

Updated Apr 6, 2026 22:29

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$2.10 – $103.94	$24.09	+25.7%
Revenue DCF 10Y	$0.15 – $129.46	$33.26	+73.5%
▸ Trading Multiples
EV/Revenue	$18.32 – $328.09	$76.54	+299.3%

Valuation History

DCF Analysis

Tandem Diabetes Care, Inc. (TNDM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$33.26

Market Price

$14.69

Upside / Downside

+126.4%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -7.7% to a target of 13.3% over 5 years, discounted at a WACC of 7.4%, Tandem Diabetes Care, Inc. (TNDM) has an intrinsic value of $33.26 per share (range: $0.15 – $129.46).

Key Assumptions

Current Operating Margin

-7.7%

Target Operating Margin

13.3%

WACC

7.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.8%

Tax Rate

2.1%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,081	6.5%	-3.5%	-38	-38	19	(36)	10	-65	-62
2027	1,203	11.3%	0.7%	9	8	22	(44)	29	-43	-38
2028	1,362	13.2%	4.9%	67	66	24	(53)	38	-1	-1
2029	1,526	12.0%	9.1%	139	136	27	(64)	39	60	47
2030	1,642	7.6%	13.3%	219	214	30	(74)	28	142	103
2031	1,782	8.5%	13.3%	238	233	32	(86)	33	146	98
2032	1,914	7.4%	13.3%	255	250	34	(98)	31	155	97
2033	2,035	6.3%	13.3%	271	266	37	(110)	29	163	95
2034	2,141	5.2%	13.3%	286	280	38	(122)	25	171	93
2035	2,228	4.1%	13.3%	297	291	40	(134)	21	176	89

Enterprise Value Bridge

Sum of PV(FCFF)521

Terminal Value (Gordon Growth at 3.0%)4,094

PV of Terminal Value2,071

Enterprise Value2,592

(–) Net Debt354

Equity Value2,238

(÷) Shares Outstanding67

Fair Value per Share$33.26

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
5.4%	$12	$41	$71	$100	$129
6.4%	$6	$26	$46	$67	$87
7.4%	$2	$18	$33	$49	$64
8.4%	$0	$13	$25	$37	$50
9.4%	$-1	$9	$19	$30	$40

Current price: $14.69. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 23.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Tandem Diabetes Care, Inc. (TNDM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$24.09

Market Price

$14.69

Upside / Downside

+64.0%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-7.7%

Target Operating Margin

13.3%

WACC

7.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.8%

Tax Rate

2.1%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,081	6.5%	-3.5%	-38	-38	19	(39)	10	-68	-65
2027	1,203	11.3%	0.7%	9	8	22	(51)	29	-50	-45
2028	1,362	13.2%	4.9%	67	66	24	(66)	38	-13	-11
2029	1,526	12.0%	9.1%	139	136	27	(83)	39	42	33
2030	1,642	7.6%	13.3%	219	214	30	(99)	28	118	85

Enterprise Value Bridge

Sum of PV(FCFF)-3

Terminal Value (Gordon Growth at 3.0%)2,731

PV of Terminal Value1,978

Enterprise Value1,975

(–) Net Debt354

Equity Value1,621

(÷) Shares Outstanding67

Fair Value per Share$24.09

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
5.4%	$2	$28	$53	$78	$104
6.4%	$-1	$17	$34	$52	$70
7.4%	$-3	$11	$24	$38	$51
8.4%	$-4	$7	$18	$29	$39
9.4%	$-5	$4	$13	$22	$31

Current price: $14.69. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 23.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$76.43

Market Price

$14.69

Upside / Downside

+420.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Tandem Diabetes Care, Inc. (TNDM) has a fair value of $76.43 based on 9 comparable companies in the Medical - Devices industry.

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Tandem Diabetes Care, Inc.TNDM	988	1.3x	1.2x
Tango Therapeutics, Inc.TNGX	2,357	36.5x	—
Nurix Therapeutics, Inc.NRIX	1,368	14.0x	20.5x
Septerna, Inc.SEPN	1,113	22.1x	13.7x
EyePoint Pharmaceuticals, Inc.EYPT	1,094	32.3x	—
UroGen Pharma Ltd.URGN	906	8.4x	3.8x
Phathom Pharmaceuticals, Inc.PHAT	886	4.3x	2.3x
InMode Ltd.INMD	869	1.6x	1.4x
Fortrea Holdings Inc.FTRE	842	0.3x	0.3x
Integra LifeSciences Holdings CorporationIART	726	1.5x	1.6x
Industry Median		8.4x	2.3x
(*) Revenue		1,015	1,074
= Enterprise Value		8,536	2,456
(-) Net Debt		354	354
Equity Value		8,182	2,102
(/) Outstanding shares		67	67
Fair Price		$122	$31

Selected Fair Value (avg of trailing + forward)

$76.43

+420.3%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$2.10 – $103.94

$24.09

+25.7%

Revenue DCF 10Y

$0.15 – $129.46

$33.26

+73.5%

▸ Trading Multiples

EV/Revenue

$18.32 – $328.09

$76.54

+299.3%

DCF Analysis

Tandem Diabetes Care, Inc. (TNDM) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$33.26

Market Price

$14.69

Upside / Downside

+126.4%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-7.7%

Target Operating Margin

13.3%

WACC

7.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

3.0%

Target CapEx/Rev

6.0%

D&A/Revenue

1.8%

Tax Rate

2.1%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,081	6.5%	-3.5%	-38	-38	19	(36)	10	-65	-62
2027	1,203	11.3%	0.7%	9	8	22	(44)	29	-43	-38
2028	1,362	13.2%	4.9%	67	66	24	(53)	38	-1	-1
2029	1,526	12.0%	9.1%	139	136	27	(64)	39	60	47
2030	1,642	7.6%	13.3%	219	214	30	(74)	28	142	103
2031	1,782	8.5%	13.3%	238	233	32	(86)	33	146	98
2032	1,914	7.4%	13.3%	255	250	34	(98)	31	155	97
2033	2,035	6.3%	13.3%	271	266	37	(110)	29	163	95
2034	2,141	5.2%	13.3%	286	280	38	(122)	25	171	93
2035	2,228	4.1%	13.3%	297	291	40	(134)	21	176	89

Enterprise Value Bridge

Sum of PV(FCFF)521

Terminal Value (Gordon Growth at 3.0%)4,094

PV of Terminal Value2,071

Enterprise Value2,592

(–) Net Debt354

Equity Value2,238

(÷) Shares Outstanding67

Fair Value per Share$33.26

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
5.4%	$12	$41	$71	$100	$129
6.4%	$6	$26	$46	$67	$87
7.4%	$2	$18	$33	$49	$64
8.4%	$0	$13	$25	$37	$50
9.4%	$-1	$9	$19	$30	$40

Current price: $14.69. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 23.8% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$76.43

Market Price

$14.69

Upside / Downside

+420.3%

Verdict

Undervalued

EV/Revenue Valuation — Medical - Devices

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Tandem Diabetes Care, Inc.TNDM	988	1.3x	1.2x
Tango Therapeutics, Inc.TNGX	2,357	36.5x	—
Nurix Therapeutics, Inc.NRIX	1,368	14.0x	20.5x
Septerna, Inc.SEPN	1,113	22.1x	13.7x
EyePoint Pharmaceuticals, Inc.EYPT	1,094	32.3x	—
UroGen Pharma Ltd.URGN	906	8.4x	3.8x
Phathom Pharmaceuticals, Inc.PHAT	886	4.3x	2.3x
InMode Ltd.INMD	869	1.6x	1.4x
Fortrea Holdings Inc.FTRE	842	0.3x	0.3x
Integra LifeSciences Holdings CorporationIART	726	1.5x	1.6x
Industry Median		8.4x	2.3x
(*) Revenue		1,015	1,074
= Enterprise Value		8,536	2,456
(-) Net Debt		354	354
Equity Value		8,182	2,102
(/) Outstanding shares		67	67
Fair Price		$122	$31

Selected Fair Value (avg of trailing + forward)

$76.43

+420.3%