Medical Device Company Valuation
Value a medical device company on its products, each forecast at its own odds of reaching the market, with the cap table, the next round and the runway it buys.
29 valuation methods · 43 industries · Results in under 10 minutes
In short
A medical device company is valued on its products: each forecast from its market, share and price and weighted by its odds of reaching the market, shown today and at the sales peak. The cap table splits that value between the share classes, and the round modeler prices the next raise at the pre-money you set.
Who this is for
Founders and finance leads of medical device companies raising a round or planning a sale, and the investors who price the round. A device maker that already sells is covered too: once its lead product is reimbursed and selling, its sales and earnings carry more of the value.
How is a medical device company valued?
VA values a device company on its products. Each product's sales are forecast from its launch year, from the patients in its market, the share it can win and its price, and weighted by its odds of reaching the market from its regulatory stage and FDA class; where you enter the sales force, the forecast is held to what the reps can sell. The market model values the risk-weighted sales of the peak year at the revenue multiple for the device's field, discounted to today, and a discounted cash flow runs on the same product forecast after its costs and trial spending. Comparable companies and precedent transactions take more of the weight as the lead product moves from trials to reimbursed sales. The value is shown today and at the sales peak; the At Peak view re-expresses the same value and never changes it. The cap table then splits the value between the share classes. This tool is informational only. Output is driven by your inputs and does not constitute a formal appraisal or certified valuation.
What drives the value of a medical device company?
- Each product's regulatory stage and FDA class, which set its odds of reaching the market
- The market each product serves, the share it can win and its price
- When each product launches, and what its trials still cost
- Reimbursement: whether payers already cover the product
- Cash against burn: the cash adds to the value, and the burn sets how long it lasts and how many rounds are still needed
- Preferred classes, options and SAFEs, which decide who takes what at a given value
What lowers the value of a medical device company?
- A lead product that has not yet started its pivotal trial
- A device in the FDA's strictest class, where fewer products reach approval
- A product approved but not yet covered by payers
- A short runway that forces the next round on weak terms
- Preferences that take most of a sale before the common shareholders
See how it works
One minute: a device company valued from its investor deck, with its next round modeled beside it.
The guide opens on Arcade in a new tab: “Medical devices: value a device company from the investor deck”.
Value your medical device company in under 10 minutes
- 1.Upload your financial statements, or type the figures in.
- 2.Confirm the add-backs and the industry details the model asks for.
- 3.Get a valuation range, the methods behind it and a PDF memorandum.
Not ready yet? Try the calculator or see a sample report.
Which numbers matter most?
Odds of reaching the market
Set by each product's regulatory stage and FDA class, and raised for a Breakthrough Device designation. VA weights each product's forecast by them, and a figure the company states can replace them.
Peak sales and launch year
Each product's sales in its best year and the year it launches, built from its market, the share it can win and its price.
Trial cost
What the trials and the submission still ahead will cost before a product can sell. The product forecast charges it across the years before launch.
Runway and rounds still needed
How many months the cash lasts at the current burn, and how long it lasts with the planned raise. VA also shows the rounds still needed to reach the next milestone, and to reach breakeven where the deck states the capital it takes.
Pre-money and dilution
What the company is worth before the next round, and the share of it the new investors take for the amount they put in. The round modeler shows the dilution every existing holder takes and, for the share class you pick, your stake before and after the round.
What each class takes
Each share class's part of the value through the waterfall: its preference, its conversion or, for a participating class, both, with the options granted and in the money and the SAFEs at their caps.
What do you need to value a medical device company?
- Profit and loss statements and balance sheets, ideally for the last three years
- Figures for the current year to date
- A list of add-backs: the owner's pay and perks, and any one-off costs
- Loan and lease balances
- The investor deck, with each product's market, launch year, trial cost and regulatory path
- The cap table, a SAFE schedule or the term sheet: preferred classes, options granted and the pool, SAFEs and their caps
- The raise you plan and the milestone it should reach
Example scenarios
Pricing the next round
The deck plans a raise to reach a milestone. The round modeler shows the new investors' share at the pre-money you set, the dilution every holder takes and your stake after the round, and the financing panel shows how long the cash lasts with the raise.
A lead product that disappoints
Bear and bull move each product's peak penetration, share and price and the discount rate, and, where a competitor's entry year is entered, when competitors arrive. A lead product still in development has its penetration moved the most. The spread shows how much of the value rests on those assumptions.
A device company that already sells
The lead product is reimbursed, on the market and earning. Comparable companies and precedent transactions carry more of the value, and where a case would rise above the multiple of trailing EBITDA that VA allows for the sector, it is held there and the valuation page says the figure is a ceiling.
Further reading
Business Valuation Methods Explained: DCF vs. Comps vs. Precedent Transactions
The five business valuation methods professionals actually use (DCF, comparable companies, precedent transactions, SDE/EBITDA multiples, and asset-based), when each wins, and how they combine into one defensible number.
WACC Explained: Why Your Discount Rate Can Make or Break a Valuation
WACC is one of the most misunderstood terms in business valuation. Here's what it is, why it matters, and how it directly affects what your business is worth.
Why Your Business Valuation Is a Range, Not a Number
A single valuation number is a red flag. Here's why serious buyers, investors, and advisors always think in ranges - and how to interpret yours.
Frequently asked questions
How is a medical device company valued?
On its products: each one forecast from its market, share and price and weighted by its odds of reaching the market. A market model values the risk-weighted sales of the peak year at the revenue multiple for the device's field, discounted to today, and a discounted cash flow runs on the same forecast too. Comparable companies and precedent transactions carry more of the weight once the lead product is reimbursed and selling.
What does VA read from the investor deck?
Each product's launch year, market, share, price, trial cost and FDA class, the cash and the burn, and the raise the deck plans with the milestone it should reach. Each figure shows where it came from, and nothing is used until you approve it. The cap table comes from its own upload: a cap table, a SAFE schedule or a term sheet. It is used as read, and you can edit or remove it.
What is the At Peak view?
The same value expressed at the sales peak, as if every product reached the market, rather than risk-adjusted and discounted to today. It re-expresses the value and never changes it.
Does the last round set the value?
No. Round prices are negotiated and protected by preferences, so VA builds the value from the company's own figures and then sets the round against it. The cap table splits the value, it never moves it.
How does VA treat SAFEs and options?
A SAFE converts at its valuation cap; a discount is not applied. In the waterfall, options share in the value once they are granted and in the money, and the unallocated pool takes nothing. The fully diluted count includes every option and the pool, as a cap table does, and the waterfall shows what each class takes at the value.
How many more rounds will the company need?
VA sets the burn and the trial costs against the cash and shows the capital needed to reach the next milestone and how many rounds that takes. Where the deck states the capital needed to break even, it also shows the rounds still needed to get there.
What does the report include?
A PDF memorandum with the products, the range and the funding, and the capitalization when you upload a cap table. With Pro or Team you also get a PowerPoint deck and a live Excel model with each product's forecast, the product cash flow and, when you upload one, the cap table.
Is this a certified appraisal?
No. This is an informational estimate. A bank loan, a partner buyout or an estate matter may require a certified business appraisal, which this does not replace.
Terms used on this page
- Pre-money valuation
- What a company is worth just before a round. The new investors' stake is the amount they put in divided by the pre-money valuation plus that amount.
- Liquidation preference
- What a preferred share class takes from a sale before the common shareholders are paid, usually the amount it invested. A participating class also shares in what is left; a non-participating one takes the better of its preference and converting.
- Fully diluted shares
- The shares issued plus those that options, warrants and convertible instruments such as SAFEs would add. Value per fully diluted share is the equity divided by that count.
- Cash runway
- How many months the cash on hand lasts at the company's burn, the cash it spends each month beyond what comes in.
- Discounted cash flow (DCF)
- A valuation that projects the cash a business will generate over the coming years and discounts it to today at a rate that reflects the risk of receiving it.
- Comparable companies
- A method that values a business at the multiples of earnings or revenue at which similar companies are valued.
- Precedent transactions
- A method that values a business at the multiples paid in past sales of similar companies.
As featured in
Value your medical device company
Get a valuation range with the methods behind it and a PDF memorandum in under 10 minutes.
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Last reviewed October 12, 2026 against VA's valuation models.