A Look at Zimmer Biomet (ZBH) Valuation After New Swiss Franc Bond Issuance Expands Financial Flexibility

If you are holding shares of Zimmer Biomet Holdings (ZBH), last week's news about the company issuing CHF 600 million in new senior unsecured bonds may have caught your eye. Adding this mix of Swiss franc-denominated debt gives Zimmer Biomet more room to maneuver, with proceeds that boost corporate liquidity and signal ongoing balance sheet management. Especially in today’s market, these terms such as annual interest, flexible redemption, and added bondholder protections suggest that Zimmer Biomet is actively shaping its financial future rather than just reacting to market pressures.

The move lands amid a year that has seen the stock deliver modest gains, up around 2% over the past 12 months and 1% year-to-date. Momentum has been building lately with an 11% climb over the past 3 months. Other recent headlines, including updates to its medical advisory team and continued dividend payouts, indicate a company fine-tuning both its core strategy and investor relations. Still, when looking at its longer-term performance, Zimmer Biomet’s record is more of a mixed bag, with some declines over three and five years.

So, after this new wave of financing and a pickup in shares this quarter, is Zimmer Biomet turning a corner or is the market already factoring in all the future potential?

Most Popular Narrative: 4.7% Undervalued

According to the most widely-followed analyst narrative, Zimmer Biomet is trading below its estimated fair value. This view is formed by bringing together forecasts for future revenue, profit margins, earnings per share growth, and several risk factors.

The company's focused investment in digital health, robotics, and data-driven surgical solutions (including the ROSA and upcoming Monogram platforms) is increasing adoption of premium offerings. This enables margin expansion due to product mix and drives recurring revenues through connected care ecosystems, supporting higher net margins and earnings predictability.

Why is Zimmer Biomet’s fair value just above the current stock price? The answer lies in a blend of analyst projections, margin expansion, and a bold bet on robotics reshaping the business. Curious which numbers and expectations put this healthcare giant in the "undervalued" bucket? Take a closer look to uncover the growth assumptions and financial levers that make up this valuation call.

Result: Fair Value of $110.92 (UNDERVALUED)

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

However, ongoing pricing pressures and integration challenges from acquisitions could quickly reshape expectations if margins or growth do not meet projections in the coming quarters.

Find out about the key risks to this Zimmer Biomet Holdings narrative.

Another View: SWS DCF Model

Looking at Zimmer Biomet with our DCF model, the story shifts. This approach points to a larger disconnect between price and fair value than suggested by analyst consensus. Could the market be missing something?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Zimmer Biomet Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Zimmer Biomet Holdings Narrative

If you have a different angle or want to dig into the numbers yourself, you can create a customized view in just a few minutes. Do it your way.

A great starting point for your Zimmer Biomet Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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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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