Zimmer Biomet (ZBH): Exploring the Company’s Valuation After Recent Share Price Uptick

Zimmer Biomet Holdings (ZBH) stock has seen some movement recently, giving investors a reason to look a bit closer at this medical device maker. Notably, the share price is coming off a modest rise over the past month.

See our latest analysis for Zimmer Biomet Holdings.

Zimmer Biomet’s recent share price movement, including a 3.45% jump in the past day, comes after a challenging run, with the 1-year total shareholder return down 5.1%. While momentum has shown signs of picking up since last quarter, long-term investors will be aware that the stock’s five-year total shareholder return has lagged considerably. Still, shifts like this can point to changing risk perceptions or fresh optimism around growth prospects, especially in the ever-evolving medical devices space.

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With shares now trading below many analyst price targets, investors are left debating whether Zimmer Biomet is undervalued or if recent gains simply reflect the market already pricing in stronger future growth. Is there a genuine buying opportunity here, or is the upside already included in the forecast?

Most Popular Narrative: 11% Undervalued

With the narrative pointing to a fair value notably above yesterday’s closing price, expectations around Zimmer Biomet’s growth drivers are firmly in focus. The spotlight is now on key business areas and what might boost future earnings power.

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, enabling margin expansion due to product mix and driving recurring revenues through connected care ecosystems. This supports higher net margins and earnings predictability.

Read the complete narrative.

Curious what bold forecasts justify that higher fair value? This narrative factors in ambitious margin improvements, recurring revenues, and adoption of big-ticket medical innovations. The only way to see the full picture is to dive into the detailed calculations that support this price target.

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 tough competition from established players could quickly challenge Zimmer Biomet’s growth outlook and valuation story.

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

Build Your Own Zimmer Biomet Holdings Narrative

If you’d rather take a hands-on approach or want to challenge these forecasts with your own analysis, building your personalized view takes 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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