iRhythm Technologies (IRTC): Exploring Valuation After Recent Share Price Pullback

iRhythm Technologies (IRTC) has been on the radar for many investors lately, with its stock posting a 7% dip over the past month. However, the year-to-date return sits above 87%. The company’s recent performance is sparking fresh debates on where valuation and momentum might head next.

See our latest analysis for iRhythm Technologies.

iRhythm Technologies’ share price has pulled back from recent highs, but even with a 1-month share price return of -7.9%, the stock remains up 87% year-to-date. Momentum may be cooling for now. The company’s impressive 1-year total shareholder return of nearly 118% speaks to substantial growth and shifting market sentiment over the past year.

If you’re interested in what’s happening across the broader health tech landscape, now’s the perfect time to explore innovation leaders with our See the full list for free.

The real question for investors now is whether iRhythm’s recent pullback signals an undervalued opportunity or if the current price already reflects all of the company’s promising growth. Is this momentum a reason to buy, or is the market pricing in all future upside?

Most Popular Narrative: 23.8% Undervalued

According to the most widely followed narrative, iRhythm Technologies’ estimated fair value sits noticeably above its last close price of $167.51. This draws fresh attention to the gap between current trading levels and analysts’ collective outlook on the company’s future prospects.

Investment in the Zio ecosystem, including next-generation patches, enhanced form factors, and AI-powered analytics (such as the Lucem Health partnership), is improving product differentiation, diagnostic yield, and workflow efficiency. This process is likely leading to higher gross margins and operating leverage as software and data become a larger component of the business.

Read the complete narrative.

Want to know the secret sauce behind this bullish outlook? The story centers around scalable technology, expanding profit potential, and ambitious long-term growth assumptions. Find out what specific growth rate, future profit, and margin projections shape this aggressive fair value.

Result: Fair Value of $219.93 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, ongoing regulatory challenges and intensifying competition from other cardiac monitoring technologies could threaten both growth momentum and projected profitability.

Find out about the key risks to this iRhythm Technologies narrative.

Another View: Multiples Tell a Different Story

While analyst outlooks signal upside, a quick check against the price-to-sales ratio offers some caution. iRhythm is trading at 7.7x sales, which is well above both the US Medical Equipment industry average of 3.1x and the peer average of 6.1x. Even compared to its own fair ratio of 4.8x, shares look expensive right now. This raises risk if market sentiment turns. Could the current premium be justified by future growth, or is it a sign of valuation getting ahead of itself?

See what the numbers say about this price — find out in our valuation breakdown.

NasdaqGS:IRTC PS Ratio as at Nov 2025 Build Your Own iRhythm Technologies Narrative

Keep in mind that if you’d rather dig into the numbers yourself or craft a different perspective, making your own narrative takes less than three minutes. So why not Do it your way

A great starting point for your iRhythm Technologies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Smart Investment Ideas?

Don’t let opportunity pass you by. Expand your portfolio with fresh ideas and get ahead of the crowd using our favorite advanced stock screeners from Simply Wall Street.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com