Intuitive Surgical (ISRG): Exploring Valuation After Recent Share Price Surge

Intuitive Surgical (ISRG) has continued to attract the attention of investors amid recent shifts in the broader healthcare sector. With its focus on surgical robotics, the company’s performance often reflects the latest trends in medical technology adoption.

See our latest analysis for Intuitive Surgical.

Intuitive Surgical’s share price momentum has surged lately, highlighted by a 23% gain over the last month and a solid 22.5% jump in the past week. This suggests growing investor optimism around the company’s prospects. While the 1-year total shareholder return stands at 6.9%, the impressive 123.8% return over three years shows how long-term holders have been well rewarded as robotic surgery continues to see broader adoption.

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With such impressive gains and growing financials, the question becomes clear: is Intuitive Surgical’s stock currently undervalued, or is the market already factoring in all its future potential, leaving little room for upside?

Most Popular Narrative: 4.7% Undervalued

Intuitive Surgical’s widely followed narrative suggests the stock is trading moderately below its calculated fair value of $573.55, with the last close at $546.51. The narrative hinges on future growth and profit expectations that set a high bar compared to where shares trade today.

Strong global procedure growth (18% total; 17% da Vinci specifically), increasing installed base, and rising system utilization indicate that Intuitive is effectively capturing surging demand for minimally invasive, robotic-assisted surgeries as chronic disease rates rise and populations age globally. This directly supports long-term recurring revenue and margin stability.

Read the complete narrative.

Curious how Intuitive’s long-term growth story and advanced technology combine to drive its robust valuation? There is one powerful financial assumption at the heart of this narrative. Uncover the critical driver behind the fair value estimate and see what sets their future outlook apart.

Result: Fair Value of $573.55 (UNDERVALUED)

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

However, rising competition from alternative instrument suppliers and ongoing financial pressures in key international markets could quickly dampen Intuitive Surgical’s positive momentum.

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

Another View: Multiples Signal a Premium Price

Using current price-to-earnings ratios as a second lens, Intuitive Surgical looks far from a bargain. The company's P/E sits at 70.7x, well above both the US Medical Equipment industry average of 29.7x and its own peer average of 36.3x. Even the estimated fair ratio, set at 38.8x, lags behind where the market currently values the stock. This premium signals strong investor confidence, but also means expectations are set high. Could that elevate future risks if growth slows?

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

Build Your Own Intuitive Surgical Narrative

If you have a different perspective or want to dive into the numbers on your own, you can craft a personalized view in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 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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