A Look at Intuitive Surgical’s (ISRG) Valuation Following Recent Share Price Uptick

Intuitive Surgical (ISRG) shares have edged higher recently, with investors paying close attention to its performance over the past month. The company's results and activity often draw interest because of its established role in robotic-assisted surgery.

See our latest analysis for Intuitive Surgical.

Intuitive Surgical’s share price has bounced modestly in the short term, up nearly 3% over the past week, but remains below its levels at the beginning of the year. Despite this recent lift, momentum has clearly faded since its strong multi-year run, with the one-year total shareholder return still down more than 14%. The three- and five-year total returns of 104% and 82% highlight the company’s longer-term resilience and growth potential.

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But after a period of lagging returns and growing profits, does Intuitive Surgical offer real value at today’s levels, or has the market already factored in its future growth prospects? Could this be a buying opportunity, or not?

Most Popular Narrative: 22% Undervalued

With Intuitive Surgical's narrative fair value set at $573.55, there is a notable gap to the last close price near $446. The stage is set for a debate: are the company’s future prospects bold enough to support this premium?

Strategic expansion into emerging markets (notably India, Korea, Brazil, Southeast Asia) and broader adoption beyond core urology into general, thoracic, colorectal, and other complex procedures is increasing the addressable market, supporting sustainable topline growth and diversification of revenue streams.

Read the complete narrative.

Want to know why the consensus places such a high value on future growth? The math behind this price bakes in ambitious sales acceleration and margin expectations. One projected trend stands out as the linchpin: strong recurring profits fueled by global expansion. Ready to see the financial levers and the surprise assumption powering this bullish view?

Result: Fair Value of $573.55 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent budgetary pressures in key international markets and increased competition from alternative suppliers could present challenges to Intuitive Surgical's long-term growth story.

Find out about the key risks to this Intuitive Surgical narrative.

Another View: How Does ISRG's Valuation Stack Up?

A look at the market's key pricing ratio suggests Intuitive Surgical is currently expensive. Its price-to-earnings ratio sits at 61.3x, well above both the industry average of 29.1x and its peers at 37.5x. Even when compared to the fair ratio of 35.8x, ISRG’s valuation is stretched. This could point to higher expectations and higher risk baked into the share price. Could this gap mean opportunity or danger for investors as the story unfolds?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Intuitive Surgical Narrative

If you see the story differently, or want to dive deeper into your own research, crafting your own view takes just minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Intuitive Surgical.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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