The medical device dataset I sourced for this analysis was categorized as medical device research & development (R&D), such as the integration or AI and robotics.

A different category that also relates to medical devices is called healthcare equipment, which is written in this post along with other healthcare related sub-industries.

Revenue Multiples for Medical Device Companies

For R&D related activities, medical device valuation multiples are quite high across the board. Out of 20 medical device R&D companies, the median revenue multiple is 3.7x

Comparatively, companies categorized under healthcare equipment have a median revenue multiple of 2.2x.

Medical Device EBITDA Multiples

The median medical device EBITDA multiples is 21.0x and the median PE ratio is 29.3x.

Comparatively, companies categorized under healthcare equipment have a median EBITDA multiple of 14.6x and PE ratio of 17.7x.

Contributing factors to why medical device research and development companies may have higher revenue and EBITDA multiples than operating healthcare equipment companies is that R&D only companies have a higher potential to strike gold if they can successfully commercialize their innovation.

The medical R&D companies would then retain the intellectual property (IP) and sell the rights to mass produce to larger healthcare equipment companies that can produce and distribute.

This potential to be a 10-bagger or 100-bagger attracts investors especially if they have a track record of success with their R&D and licensing of their IP.

Medical Device Company Margin

Although the upfront cost during R&D will burn through the cash if they don’t have any success yet, once the company is able to license their IP, they would get a steady stream of cash flow and their expenses would be the R&D team.

As such, the margins are relatively high for medical device R&D companies. The median gross margin for 18 companies in the dataset is 52%, the median EBITDA margin is 17%, and the median net profit margin is 14%.

Medical Device Industry Outlook 2025

Key trends include the continued integration of AI and machine learning, the rise of telehealth-enabled devices, and advancements in augmented reality for surgical applications.

However, challenges such as regulatory changes, cybersecurity concerns, and the need for evidence of cost-effectiveness remain critical considerations for stakeholders.

Refresher: Value a company using revenue, value a company using EBITDA.

Download Data Set

To download the 20 medical device R&D companies data set in this analysis, enter your email address below to sign-up for the mailing list and the data set will be sent to your email directly. In some cases, it takes a few hours or a day to receive the email with the data set.

To download the healthcare equipment companies, download it from the healthcare analysis post.