What happened

Shares of ShockWave Medical (SWAV 0.45%) continued higher today, up 17% going into the closing bell. All told, shares are up 33% in the two days following the release of the medical device company's first-quarter earnings report.

So what

Going back just a little further to the company's initial public offering in March, ShockWave Medical's shares are up a whopping 335%.

You read that right: Shares have quadrupled in a little over two months.

While that's great news for investors, the company seems to have left money on the table during the IPO. A higher initial valuation would have allowed ShockWave to raise additional capital, which it certainly could use as it moves into coronary patients. Alternatively, a higher valuation at the IPO would have allowed the company to raise the same amount by selling fewer shares, thereby creating less dilution.

Doctor talking to a patient in an exam room

Image source: Getty Images.

Now what

It's hard to know how high shares of ShockWave can go. Based on management's guidance for 2019 revenue in the range of $33 million to $36 million, the company certainly looks extremely expensive. Using the forward estimate and today's price, it's a price-to-sales ratio around 45.

But investors are clearly looking beyond this year -- as they should -- into a potential launch of the C2 Coronary IVL in the U.S. in 2021. Between now and then, investors will get to see how the C2 sells in Europe and the company can grow sales of its currently available M5 IVL device in peripheral artery disease.