HeartFlow's Valuation Revisited Amid Share Price Volatility: A DCF Model's Perspective

HeartFlow (HTFL) shares have seen a mixed performance lately, with a 17% increase over the past week but a 19% decline for the month. The stock's price-to-sales ratio of 16.2x is well above its peer group and the U.S. Healthcare Services industry average, indicating high expectations for future growth and profitability. However, the valuation appears stretched under current conditions, and persistent net losses and a revenue multiple above industry norms could sour sentiment if growth or profitability expectations fall short.