MeritValue

LivaNova PLC

LIVNdata completeness 100%12 fiscal years on file
The thesis, from the filings

LivaNova PLC earns about -3% on invested capital, below its ~9% cost of capital, but has diluted owners by 8% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $78.53 and $145.91 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.04B1$1.02B2$1.15B3$1.25B3$1.39B3
Net income−$135.8M4−$86.2M5$17.5M6$63.2M6−$242.5M6
Operating cash flow$102.5M7$69.9M8$74.9M9$183M9$254.3M9
Capital expenditure$25.5M10$26.5M11$35M12$47.1M12$81.1M12
Free cash flow (derived)$77.1M7$43.4M8$39.9M9$135.9M9$173.3M9
Total debt$703.3M13$1.1B14$1.19B15$1.33B16$783.6M16
Cash & equivalents$208M17$214.2M18$266.5M19$428.9M19$635.6M19
Diluted shares50.6M53.5M54.2M54.6M54.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$219.99
your share of equity
Profit it earned you last year
−$44.45
Free cash flow it threw off
$31.77
Debt you’d be carrying
$143.65

10 shares is a claim on $219.99 of net worth that earned you −$44.45 and generated $31.77 of cash last year, against $143.65 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-3% avg · 5y
FY21 -3%FY22 -1%FY23 -1%FY24 3%FY25 -13%

It earned about -3% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+8% shares · 5y

Share count is up 8% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 11% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $78.53 and $145.91 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$145.91
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$135.9M
DCF · Growth Exit 5Y
$78.53
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$135.9M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $78.53
The three cases
Bear0.0%$32.89
Base20.0%$78.53
Bull20.0%$78.53

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001639691-24-000021 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001639691-25-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001639691-26-000010 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001639691-24-000021 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001639691-25-000010 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001639691-26-000010 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001639691-24-000021 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001639691-25-000010 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001639691-26-000010 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001639691-24-000021 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001639691-25-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001639691-26-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001639691-23-000015 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001639691-24-000021 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001639691-25-000010 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001639691-26-000010 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001639691-23-000015 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001639691-24-000021 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001639691-26-000010 (CashAndCashEquivalentsAtCarryingValue)