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PEN, Penumbra

Medical Devices & Equipment consumer brand Cyclical

Penumbra, the world's leading thrombectomy company, is focused on developing the most innovative technologies for challenging medical conditions such as ischemic stroke, venous thromboembolism such as pulmonary embolism, and acute limb ischemia.

We have successfully developed, obtained regulatory clearance or approval for, and introduced products into the thrombectomy market since 2007, access market since 2008, embolization market since 2011, and neurosurgical market since 2014.

Latest annual: FY2025 10-K

PEN · Penumbra

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$1.4B

+17.5% YoY · 20% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.5B 5-yr avg $1.1B

Gross margin 67% 5-yr avg 64%

Operating margin 12.9% 5-yr avg 4.2%

ROIC 13% 5-yr avg 4%

Owner-earnings margin 18% 5-yr avg 5%

Free cash flow margin 15% 5-yr avg 4%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What it is: Revenue is Thrombectomy (68%) and Embolization (32%).
Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 64% and operating margin about 0.3% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The operating margin has swung widely — from −6.9% to 13% — on a steadier 64% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. Inventory runs near 31% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on the installed base and what follows it. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 0%, above 15% in 0 of 10 years). By owner earnings: roughly 3% of revenue reaches owners as cash, though it swings. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

Thrombectomy is 68% of revenue, with Embolization the other meaningful line at 32%.

Revenue by product line, FY2025

Thrombectomy68%$948M
Embolization32%$456M

By geographyUnited States78%International22%

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$263M	$334M	$445M	$547M	$560M	$748M	$847M	$1.1B	$1.2B	$1.4B	$1.5B	RevenueRevenue
65%	65%	66%	68%	60%	64%	63%	64%	63%	67%	67%	Gross marginGross mgn
56%	55%	51%	50%	51%	51%	53%	48%	48%	47%	48%	SG&A / revenueSG&A/rev
9%	9%	8%	9%	16%	14%	9%	8%	8%	6%	6%	R&D / revenueR&D/rev
($1M)	$1M	($852K)	$48M	($39M)	($8M)	$6M	$74M	$9M	$189M	$187M	Operating incomeOp. inc.
−0.5%	0.3%	−0.2%	8.7%	−6.9%	−1.0%	0.7%	6.9%	0.8%	13.5%	12.9%	Operating marginOp. mgn
$15M	$5M	$7M	$48M	($16M)	$5M	($2M)	$91M	$14M	$178M	$171M	Net incomeNet inc.
—	—	—	6%	—	—	—	—	33%	13%	16%	Effective tax rateTax rate
											Cash flow & returns
($13M)	$13M	$29M	$27M	($33M)	$10M	($56M)	$97M	$168M	$239M	$277M	Operating cash flowOp. cash
$2M	$4M	$6M	$8M	$13M	$16M	$24M	$27M	$24M	$17M	$17M	DepreciationDeprec.
($45M)	($14M)	($2M)	($51M)	($56M)	($78M)	($115M)	($71M)	$85M	($16M)	$29M	Working capital & otherWC & other
$14M	$13M	$10M	$22M	$25M	$21M	$19M	$15M	$21M	$64M	$64M	CapexCapex
5.2%	3.8%	2.2%	4.0%	4.4%	2.8%	2.3%	1.4%	1.8%	4.5%	4.4%	Capex / revenueCapex/rev
($15M)	$9M	$23M	$19M	($46M)	($7M)	($75M)	$82M	$147M	$221M	$260M	Owner earningsOwner earn.
−5.7%	2.7%	5.1%	3.4%	−8.2%	−0.9%	−8.8%	7.8%	12.3%	15.8%	17.9%	Owner earnings marginOE mgn
($26M)	$159K	$19M	$5M	($58M)	($12M)	($75M)	$82M	$147M	$175M	$213M	Free cash flowFCF
−10.0%	0.0%	4.3%	0.8%	−10.3%	−1.6%	−8.8%	7.8%	12.3%	12.5%	14.6%	Free cash flow marginFCF mgn
$0	$9M	$20M	$0	$0	—	—	—	—	—	$0	AcquisitionsAcquis.
—	—	—	—	—	—	$0	$0	$100M	$0	—	BuybacksBuybacks
-0%	0%	-0%	11%	-5%	-1%	0%	7%	1%	13%	13%	ROICROIC
6%	1%	2%	10%	-2%	1%	-0%	8%	1%	12%	12%	Return on equityROE
6%	1%	2%	10%	−2%	1%	−0%	8%	1%	12%	12%	Retained to equityRetained/eq
											Balance sheet
$129M	$215M	$201M	$189M	$265M	$59M	$70M	$167M	$324M	$187M	$398M	Cash & investmentsCash+inv
$43M	$58M	$82M	$106M	$115M	$134M	$203M	$202M	$168M	$190M	$183M	ReceivablesReceiv.
$73M	$95M	$116M	$153M	$220M	$264M	$334M	$388M	$407M	$432M	$439M	InventoryInvent.
$4M	$7M	$8M	$15M	$14M	$13M	$27M	$27M	$31M	$35M	$44M	Accounts payablePayables
$112M	$146M	$189M	$244M	$320M	$384M	$511M	$563M	$543M	$587M	$578M	Operating working capitalOper. WC
$264M	$382M	$411M	$410M	$618M	$681M	$756M	$915M	$951M	$1.2B	$1.3B	Current assetsCur. assets
$36M	$52M	$66M	$70M	$106M	$123M	$145M	$151M	$158M	$183M	$212M	Current liabilitiesCur. liab.
7.4×	7.4×	6.2×	5.9×	5.8×	5.5×	5.2×	6.1×	6.0×	6.6×	6.0×	Current ratioCurr. ratio
$0	$8M	$8M	$8M	$8M	$166M	$166M	$166M	$166M	$167M	$167M	GoodwillGoodwill
$308M	$477M	$515M	$558M	$823M	$1.2B	$1.4B	$1.6B	$1.5B	$1.8B	$1.9B	Total assetsAssets
($129M)	($215M)	($201M)	($189M)	($265M)	($59M)	($70M)	($167M)	($324M)	($187M)	($398M)	Net debt / (cash)Net debt
—	—	—	—	—	-3.9×	3.5×	42.3×	6.5×	144.4×	143.3×	Interest coverageInt. cov.
$267M	$400M	$422M	$486M	$641M	$954M	$999M	$1.2B	$1.2B	$1.4B	$1.5B	Shareholders’ equityEquity
5.6%	5.3%	4.1%	3.9%	4.6%	8.8%	4.4%	4.8%	3.9%	4.2%	4.1%	Stock comp / revenueSBC/rev
											Per share
33.5M	35.3M	36.1M	36.3M	35.8M	37.9M	37.8M	39.2M	39.3M	39.3M	39.5M	Shares out (diluted)Shares
$7.87	$9.45	$12.33	$15.09	$15.67	$19.74	$22.39	$26.99	$30.42	$35.72	$36.78	Revenue / shareRev/sh
$0.44	$0.13	$0.18	$1.34	$-0.44	$0.14	$-0.05	$2.32	$0.36	$4.52	$4.33	EPS (diluted)EPS
$-0.45	$0.25	$0.63	$0.51	$-1.29	$-0.18	$-1.98	$2.09	$3.75	$5.63	$6.57	Owner earnings / shareOE/sh
$-0.79	$0.00	$0.53	$0.13	$-1.62	$-0.31	$-1.98	$2.09	$3.75	$4.45	$5.38	Free cash flow / shareFCF/sh
$0.41	$0.35	$0.27	$0.61	$0.69	$0.56	$0.51	$0.39	$0.54	$1.62	$1.62	Cap. spending / shareCapex/sh
$7.96	$11.34	$11.70	$13.40	$17.94	$25.18	$26.40	$30.06	$29.31	$36.33	$37.27	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+18.3%/yr	+17.9%/yr
EPS	+29.5%/yr	—
Capital spending / share	+16.6%/yr	+18.6%/yr
Book value / share	+18.4%/yr	+15.2%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

39Mpeak FY2025

ROIC

13%low FY2020

Gross margin

67%low FY2020

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$221Mowner earningsvs.$178Mnet incomelow FY2022

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2017FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $221M of owner earnings, the operating cash left after the $17M it takes just to hold its position. It put $46M more into growth; free cash flow, after that spending, was $175M.

Reported net income$178M

Owner earnings$221M · 16% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$178M	$14M	$91M	($2M)	$5M
Depreciation & amortizationnon-cash charge added back	+$17M	+$24M	+$27M	+$24M	+$16M
Stock-based compensationreal costnon-cash, but a real cost	+$59M	+$46M	+$51M	+$37M	+$66M
Working capital & othertiming of cash in and out, other non-cash items	−$16M	+$85M	−$71M	−$115M	−$78M
Cash from operations	$239M	$168M	$97M	($56M)	$10M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$17M	−$21M	−$15M	−$19M	−$16M
Owner earnings	$221M	$147M	$82M	($75M)	($7M)
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$46M	—	—	—	−$5M
Free cash flow	$175M	$147M	$82M	($75M)	($12M)
Owner-earnings marginowner earnings ÷ revenue	16%	12%	8%	-9%	-1%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $17M, roughly its depreciation, the rate its assets wear out). The other $46M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $59M), owner earnings is nearer $162M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 144.4×

Comfortable

Operating income $189M ÷ interest expense $1M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$382M

Net cash, debt-free

Cash $187M + ST investments $195M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $382M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 363d

Long (60+ days)

DSO 49 + DIO 342 − DPO 27 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median -3%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 16%

High, recently turned positive

latest $221M = operating cash $239M − maintenance capex $17M; positive each of the last 3 years, after an earlier loss stretch (10-yr median 3%)

Industry peers: median 1%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 16% of revenue this year, a 3% median across 10 years. It chose to put $46M more into growth, so free cash flow this year was $175M — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $59M of SBC) leaves $162M.
Are earnings backed by cash? 1.34×

Cash-backed

Cash from ops $239M ÷ net income $178M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 0%

Reinvests most of it

Dividends + buybacks $0 ÷ Owner Earnings $221M

What this means
Of $221M Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 3.65×

Expanding

Capex $64M ÷ depreciation $17M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Near

Revenue ≥ $2B · $1.4B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 6.64×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Miss

A profit every year (10-yr record) · 2 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +984%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.40/share (latest year $4.52), the averaged base the calculator's gate runs on, and book value is $36.30/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 8 of 10

What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
Operating margin −0% → 7% (3-yr avg ends)

In the filing’s words The record and the words agree: the margin widened and the filing attributes the gain to its own pricing, not volume alone.

What this means
Through the cycle the operating margin widened — about −0% early to 7% lately, median 0% — pricing power intact or improving.
Worst year 2020 · −6.9% op. margin

What this means
Operations went underwater in 2020, understand why before trusting the good years.
Share count +1.8%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.3B

Cash & short-term investments$398M
Receivables$183M
Inventory$439M
Other current assets$256M

Current liabilities$212M

Accounts payable$44M
Other current liabilities$168M

Current ratio6.02×all current assets ÷ what's due · Graham looked for 2×

Quick ratio3.95×stricter: inventory excluded

Cash ratio1.88×strictest: cash alone against what's due

Working capital$1.1Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+15.6%the freshest read on whether the business is still growing

Current ratio, recent quarters6.3× → 6.0×

Deeper floors

Tangible book value$1.3Bequity stripped of goodwill & intangibles

Net current asset value$851MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$194M$194M of it operating leases

Deferred revenue$940Kcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $480M of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$223M · 46%
Buybacks$100M · 21%
Retained (debt / cash)$157M · 33%

Returned to owners$100M
28% of the owner earnings the business produced over the span, $0 as dividends and $100M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $269M.
Average price paid for buybacks$193.89
Across the years where the filing reports a share count, 1M shares were bought for $100M, about $193.89 each.
Net change in share count18.1%
The diluted count rose from 33M to 40M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained59%
Of the earnings it kept rather than paid out ($244M over the span), annual owner earnings (first three years vs last three) grew $145M, so each retained $1 added about 0.59 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Adam Elsesser	$498k	$498k	($7M)
2022	Adam Elsesser	$602k	$602k	($75M)
2023	Adam Elsesser	$602k	$602k	$82M
2024	Adam Elsesser	$630k	$630k	$147M
2025	Adam Elsesser	$852k	$852k	$221M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership2.9%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$59M
The slice of the business handed to employees in shares this year, 4% of revenue, equal to 31% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Penumbra is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 5 tests turned up something to look into; the other 4 came back clean.

Look hereDid the share count rise anyway?18.1%
Diluted shares grew 18.1% over 2016–2025, even as the company spent $100M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Medical Devices & Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
TFXTeleflex	$2.0B	55%	16.6%	7%	13%
IARTIntegra Lifesciences Holdings Corp	$1.6B	62%	7.4%	4%	8%
PENPenumbra	$1.4B	65%	0.5%	0%	3%
HAEHaemonetics	$1.3B	50%	10.4%	7%	11%
TNDMTandem Diabetes Care	$1.0B	52%	-15.0%	-24%	-1%
INSPInspire Medical Systems	$912M	84%	-28.7%	-19%	-23%
OFIXOrthofix Medical Inc. Common Stock (DE)	$822M	75%	-2.3%	-3%	1%
ATECAlphatec Holdings	$764M	68%	-30.2%	-47%	-31%
Group median	—	63%	-0.9%	-1%	2%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Penumbra has delivered.

Penumbra’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Penumbra earns about $43M on its 3.0% median owner-earnings margin. This year’s 15.8% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($43M) Net of stock comp (−$60M) Steady-state · maintenance capex ($259M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · since FY2023+46%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $213M on 39M shares outstanding, per the 10-Q cover, as of 2026-04-22; net cash $398M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. Capex ($64M) runs well above depreciation ($17M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $259M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh PEN against another business →

Cite: Owner Scorecard, "Penumbra (PEN), the owner's record," https://ownerscorecard.com/c/PEN, data as of 2026-07-09.

Manual order: ← PEGA its page in the Manual PENG →

Industry order: ← OMCL the Medical Devices & Equipment chapter PHG →