Companies · STE · Healthcare Products
What does Steris' price assume?
The margin the price assumes
Revenue grows as its record suggests; the operating margin is solved at today's price.
At $256.27 on November 11, 2026, with growth of 13.8% a year, the price assumes an operating margin of 25.0% by year 5.
The price assumes
25.0%
Operating margin by year 5, solved at the price
Its 5-year median
17.4%
Fiscal 2022–2026, adjusted for R&D and leases
Its industry
15.8%
Healthcare Products, Damodaran Online, January 2026
The price assumes a margin above the company's own median and above its industry's.
The numbers behind the chart
| Fiscal year | Adjusted operating margin |
|---|---|
| 2022 | 12.2% |
| 2023 | 18.6% |
| 2024 | 17.4% |
| 2025 | 17.0% |
| 2026 | 19.7% |
- Revenue growth, years 1 to 5
- 13.8% a yearFrom its own revenue growth over the last five years: its filings under its current registration cover fewer than eleven years.SEC filings, revenue to fiscal 2026
- Margin path
- From today's margin to 25.0% by year 5Solved at the price. After that, the margin holds.
The growth the price assumes
The operating margin moves to its own median; revenue growth is solved at today's price.
At $256.27 on November 11, 2026, with an operating margin moving to its 5-year median of 17.4% by year 5, the price assumes revenue growth of 23.5% a year for 5 years, slowing to the riskfree rate by year 10.
The price assumes
23.5%
Revenue growth a year, years 1 to 5, solved at the price
Its 5-year growth
13.8%
Revenue, a year on average, from its SEC filings
Its industry
18.4%
Healthcare Products, five years, Damodaran Online, January 2026
The price assumes revenue growth above the company's own record and above its industry's.
The numbers behind the chart
| Fiscal year | Revenue growth |
|---|---|
| 2017 | – |
| 2018 | 0.3% |
| 2019 | 6.2% |
| 2020 | 8.9% |
| 2021 | 2.5% |
| 2022 | 35.9% |
| 2023 | 7.4% |
| 2024 | 13.3% |
| 2025 | 6.2% |
| 2026 | 8.7% |
- Operating margin
- From today's margin to 17.4% by year 5Its own 5-year median, held. After that, the margin holds.SEC filings, fiscal 2022-2026, the median operating margin adjusted for R&D and leases
- Revenue growth, years 1 to 5
- 23.5% a yearSolved at the price. From year 6, it slows each year to the riskfree rate by year 10.
The assumptions both views share
These are neutral settings, the same for every company. Each view holds them and solves for one driver at today's price.
- Reinvestment
- $1.48 of revenue for each $1 investedThe industry's sales-to-capital ratio: how much new capital growth needs.Damodaran Online, January 2026 industry data, Healthcare Products
- Cost of capital
- 7.83%The return investors need for the risk: the industry's beta, the market's risk premium, and debt rated Aaa/AAA from its median margin, with a stated 5-year debt maturity. Built by the engine from the parts listed under Sources, each with its date.
- After year 10
- Growth at the riskfree rate, foreverNew investment earns its cost of capital and no more, so growth after year 10 adds no value, and the cost of capital moves to a mature company's.
Worth knowing
- Its filings report discontinued operations, so part of the record may be a business it no longer runs.
- Its adjusted record has 5 complete years, not ten.
- Its filings under its current registration cover fewer than eleven years, so growth uses the five-year record alone.
This is a mechanical starting point with neutral assumptions, not a valuation. The story decides.
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- Price: Qualuation's records, close of November 11, 2026.
- 10-K for the period ended March 31, 2026, filed May 29, 2026 (SEC EDGAR, accession 0001628280-26-039136).
- 10-Q for the period ended June 30, 2026, filed August 7, 2026 (SEC EDGAR, accession 0001628280-26-054830).
- Margin record: SEC filings, fiscal 2022-2026, operating margin adjusted for R&D and leases.
- Industry margin: Damodaran Online, January 2026 industry data, Healthcare Products, adjusted for R&D and leases.
- Revenue growth record: SEC filings, revenue, fiscal 2021-2026, the average yearly growth.
- Industry growth: Damodaran Online, January 2026 industry data, Healthcare Products, revenue growth over five years.
- Sales to capital: Damodaran Online, January 2026 industry data, Healthcare Products.
- US 10-year Treasury yield (FRED), October 29, 2026.
- Less the US default spread (Damodaran Online, July 2026).
- Industry beta, Healthcare Products (Damodaran Online, January 2026).
- Equity risk premium (Damodaran Online, October 2026).
- Debt rated Aaa/AAA at its median margin (rating table, Damodaran Online, January 2026).
- The margin the price assumes: solved by the engine at the price on November 12, 2026, with the assumptions above.
- The growth the price assumes: solved by the engine at the price on November 12, 2026, with the margin at its median and the assumptions above.