Investors may be undervaluing Mesa Laboratories by 40%, with a projected fair value of $107 and a share price of $64.29.

Mesa Laboratories' (MLAB) projected fair value is $107, indicating it may be 40% undervalued at its current price of $64.29. The analyst price target of $88.50 is 17% less than the estimated fair value. The discounted cash flow model is used to estimate the company's intrinsic value.

Mesa Laboratories Inc. (MLAB), a biotechnology company specializing in medical laboratory equipment and supplies, has been the subject of interest among investors due to its recent financial performance and valuation metrics. According to a recent analysis using the Discounted Cash Flow (DCF) model, MLAB's projected fair value stands at $107, suggesting that the stock may be undervalued by approximately 40% at its current price of $64.29 [1].

The DCF model, a widely used valuation technique, projects the company's future cash flows and discounts them to their present value. In the case of MLAB, the model forecasts a 10-year free cash flow (FCF) of $232 million, with a discount rate of 8.2%. This analysis indicates that the stock's current price is significantly lower than its intrinsic value, presenting an attractive opportunity for investors.

However, the analyst price target for MLAB stands at $88.50, which is 17% less than the estimated fair value of $107. This discrepancy highlights the potential for further upside in the stock's price, as analysts may have underestimated the company's growth prospects or overlooked certain factors that could drive future performance.

In addition to the valuation metrics, investors should also consider MLAB's recent earnings reports and market dynamics. The company reported adjusted earnings of $0.85 per share for the quarter ended June 30, 2025, beating the mean expectation of $0.44 per share by analysts. Revenue also rose by 2.4% to $59.54 million, despite missing the analysts' expectations of $60.58 million. While these results may suggest that the company is on the right track, the stock's performance has been volatile, with shares falling by 18.8% in the quarter and 42.0% year-to-date [2].

Pacific Biosciences (PACB), a competitor in the genomic sequencing sector, offers a relevant comparison. PACB reported strong Q2 2025 earnings, with revenue up 10.6% YoY and gross margins improving to 38%. Despite these positive results, PACB's stock trades at a significant discount relative to its peers and intrinsic value, with analysts projecting a fair value of $2.06 per share, implying a 63% upside from current levels [3].

In conclusion, Mesa Laboratories Inc. (MLAB) appears to be undervalued based on the DCF model's estimated fair value of $107. However, investors should consider the company's recent earnings performance, analyst price targets, and market dynamics before making investment decisions. As with any investment, it is essential to conduct thorough research and consult with a financial advisor.

References:
[1] https://ca.finance.yahoo.com/news/investors-undervaluing-mesa-laboratories-inc-121826994.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TX20W:0-mesa-laboratories-inc-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[3] https://www.ainvest.com/news/pacific-biosciences-pacb-buy-strong-q2-earnings-improved-margins-2508/