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 (CHF331.04)

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?

Key metric: As ZBH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ZBH. This is calculated by dividing ZBH's market cap by their current earnings.
What is ZBH's PE Ratio?
PE Ratio19.2x
EarningsUS$1.08b
Market CapUS$20.79b

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 Average35.8x
SOON Sonova Holding
31.3x10.1%CHF 17.7b
STMN Straumann Holding
62.5x21.2%CHF 18.2b
MOVE Medacta Group
41.8x21.1%CHF 2.1b
METN Metall Zug
7.5x-29.5%CHF 508.5m
ZBH Zimmer Biomet Holdings
19.2x7.9%CHF 20.8b

Price-To-Earnings vs Peers: ZBH is good value based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (35.6x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZBH 19.2xIndustry Avg. 30.9xNo. of Companies8PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZBH is good value based on its Price-To-Earnings Ratio (19.2x) compared to the European Medical Equipment industry average (30.9x).

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 Ratio19.2x
Fair PE Ratio30.8x

Price-To-Earnings vs Fair Ratio: ZBH is good value based on its Price-To-Earnings Ratio (19.2x) compared to the estimated Fair Price-To-Earnings Ratio (30.8x).

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 113.07
+3.7%
7.9%CHF 136.91CHF 97.66n/a25
Dec ’25CHF 109.00
CHF 107.95
-1.0%
8.2%CHF 129.62CHF 92.47n/a26
Nov ’25CHF 109.00
CHF 108.59
-0.4%
8.3%CHF 130.59CHF 93.15n/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 84.77CHF 109.0025
Dec ’24CHF 98.00
CHF 118.95
+21.4%
11.6%CHF 157.92CHF 89.34CHF 109.0025
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/03 20:22
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Zimmer Biomet Holdings, Inc. is covered by 62 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Stephan GasteygerAtlantic Equities LLP
Jeffrey JohnsonBaird