Zimmer Biomet Holdings, Inc.

SWX:ZBH Stock Report

Market Cap: CHF 19.0b

Zimmer Biomet Holdings Valuation

Is ZBH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ZBH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZBH (CHF109) is trading below our estimate of fair value (CHF256.86)

Significantly Below Fair Value: ZBH is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZBH?

Other financial metrics that can be useful for relative valuation.

ZBH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDA10.9x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does ZBH's PE Ratio compare to its peers?

The above table shows the PE ratio for ZBH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average78.5x
STMN Straumann Holding
63.9x21.1%CHF 18.2b
SOON Sonova Holding
31.8x8.4%CHF 19.2b
MOVE Medacta Group
42.9x18.8%CHF 2.2b
MED Medartis Holding
175.3x51.7%CHF 736.9m
ZBH Zimmer Biomet Holdings
20.2x8.1%CHF 21.7b

Price-To-Earnings vs Peers: ZBH is good value based on its Price-To-Earnings Ratio (20.2x) compared to the peer average (80.1x).

Price to Earnings Ratio vs Industry

How does ZBH's PE Ratio compare vs other companies in the European Medical Equipment Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.7%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.7%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: ZBH is good value based on its Price-To-Earnings Ratio (20.2x) compared to the European Medical Equipment industry average (30.6x).

Price to Earnings Ratio vs Fair Ratio

What is ZBH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZBH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.2x
Fair PE Ratio31.7x

Price-To-Earnings vs Fair Ratio: ZBH is good value based on its Price-To-Earnings Ratio (20.2x) compared to the estimated Fair Price-To-Earnings Ratio (31.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZBH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 109.00
CHF 107.95
-1.0%
8.2%CHF 129.62CHF 92.47n/a26
Oct ’25CHF 109.00
CHF 106.65
-2.2%
11.4%CHF 148.09CHF 90.55n/a26
Sep ’25CHF 109.00
CHF 110.25
+1.1%
11.0%CHF 150.96CHF 92.30n/a26
Aug ’25CHF 109.00
CHF 118.85
+9.0%
10.6%CHF 156.39CHF 100.09n/a26
Jul ’25CHF 109.00
CHF 122.29
+12.2%
9.0%CHF 158.03CHF 101.14n/a26
Jun ’25CHF 113.00
CHF 123.03
+8.9%
8.6%CHF 157.89CHF 101.05n/a25
May ’25CHF 113.00
CHF 125.12
+10.7%
8.3%CHF 159.65CHF 99.44n/a25
Apr ’25CHF 98.00
CHF 119.89
+22.3%
8.5%CHF 153.56CHF 95.65n/a25
Mar ’25CHF 98.00
CHF 120.53
+23.0%
8.6%CHF 154.57CHF 96.27n/a25
Feb ’25CHF 98.00
CHF 115.14
+17.5%
10.0%CHF 152.05CHF 91.23n/a25
Jan ’25CHF 98.00
CHF 112.80
+15.1%
10.4%CHF 149.85CHF 84.77n/a25
Dec ’24CHF 98.00
CHF 118.95
+21.4%
11.6%CHF 157.92CHF 89.34n/a25
Nov ’24CHF 109.00
CHF 129.34
+18.7%
12.3%CHF 156.17CHF 89.24CHF 109.0025
Oct ’24CHF 109.00
CHF 133.27
+22.3%
8.2%CHF 154.64CHF 106.04CHF 109.0024
Sep ’24CHF 109.00
CHF 133.27
+22.3%
8.2%CHF 154.64CHF 106.04CHF 109.0024
Aug ’24CHF 109.00
CHF 132.24
+21.3%
9.1%CHF 153.17CHF 101.53CHF 109.0023
Jul ’24CHF 109.00
CHF 136.44
+25.2%
9.3%CHF 158.51CHF 105.07CHF 109.0023
Jun ’24CHF 110.00
CHF 136.44
+24.0%
9.3%CHF 158.51CHF 105.07CHF 113.0023
May ’24CHF 110.00
CHF 122.16
+11.1%
10.2%CHF 156.41CHF 93.85CHF 113.0023
Apr ’24CHF 114.00
CHF 123.98
+8.8%
10.0%CHF 160.09CHF 96.05CHF 98.0024
Mar ’24CHF 114.00
CHF 125.54
+10.1%
10.1%CHF 162.41CHF 97.45CHF 98.0022
Feb ’24CHF 112.00
CHF 119.84
+7.0%
11.4%CHF 161.21CHF 92.12CHF 98.0022
Jan ’24CHF 109.00
CHF 117.73
+8.0%
11.2%CHF 162.23CHF 92.70CHF 98.0022
Dec ’23CHF 109.00
CHF 117.96
+8.2%
11.5%CHF 164.85CHF 94.20CHF 98.0022
Nov ’23CHF 109.00
CHF 124.95
+14.6%
12.2%CHF 174.36CHF 94.66CHF 109.0022

Analyst Forecast: Target price is less than 20% higher than the current share price.

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