Zimmer Biomet Holdings, Inc.

NYSE:ZBH Stock Report

Market Cap: US$21.3b

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 ($107.12) is trading below our estimate of fair value ($240.05)

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 Ratio19.7x
EarningsUS$1.08b
Market CapUS$21.32b

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 Average54.9x
STE STERIS
34.6x11.5%US$20.5b
BAX Baxter International
124.5x40.5%US$15.1b
IDXX IDEXX Laboratories
39x10.3%US$33.8b
GEHC GE HealthCare Technologies
21.5x11.5%US$36.1b
ZBH Zimmer Biomet Holdings
19.7x8.1%US$21.3b

Price-To-Earnings vs Peers: ZBH is good value based on its Price-To-Earnings Ratio (19.7x) compared to the peer average (56.3x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MHUA Meihua International Medical Technologies
0.9xn/aUS$8.08m
PAVM PAVmed
0.4x-90.0%US$6.39m
RTSL Rapid Therapeutic Science Laboratories
0.3xn/aUS$18.99k
No more companies available in this PE range
ZBH 19.7xIndustry Avg. 35.2xNo. of Companies9PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZBH is good value based on its Price-To-Earnings Ratio (19.7x) compared to the US Medical Equipment industry average (35.2x).

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 Ratio19.7x
Fair PE Ratio28.1x

Price-To-Earnings vs Fair Ratio: ZBH is good value based on its Price-To-Earnings Ratio (19.7x) compared to the estimated Fair Price-To-Earnings Ratio (28.1x).

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
CurrentUS$107.12
US$124.27
+16.0%
8.1%US$150.00US$107.00n/a26
Dec ’25US$112.10
US$124.92
+11.4%
8.2%US$150.00US$107.00n/a26
Nov ’25US$107.27
US$124.73
+16.3%
8.3%US$150.00US$107.00n/a26
Oct ’25US$107.34
US$126.04
+17.4%
11.4%US$175.00US$107.00n/a26
Sep ’25US$115.46
US$127.81
+10.7%
11.0%US$175.00US$107.00n/a26
Aug ’25US$111.12
US$133.00
+19.7%
10.6%US$175.00US$112.00n/a26
Jul ’25US$105.96
US$135.42
+27.8%
9.0%US$175.00US$112.00n/a26
Jun ’25US$115.15
US$136.36
+18.4%
8.6%US$175.00US$112.00n/a25
May ’25US$119.56
US$137.15
+14.7%
8.3%US$175.00US$109.00n/a25
Apr ’25US$129.75
US$136.63
+5.3%
8.5%US$175.00US$109.00n/a25
Mar ’25US$124.01
US$136.47
+10.0%
8.6%US$175.00US$109.00n/a25
Feb ’25US$127.25
US$132.52
+4.1%
10.0%US$175.00US$105.00n/a25
Jan ’25US$121.70
US$131.72
+8.2%
10.4%US$175.00US$99.00n/a25
Dec ’24US$117.97
US$131.82
+11.7%
11.6%US$175.00US$99.00US$112.1025
Nov ’24US$105.07
US$144.94
+37.9%
12.3%US$175.00US$100.00US$107.2725
Oct ’24US$112.22
US$150.81
+34.4%
8.2%US$175.00US$120.00US$107.3424
Sep ’24US$119.45
US$150.81
+26.3%
8.2%US$175.00US$120.00US$115.4624
Aug ’24US$132.27
US$151.09
+14.2%
9.1%US$175.00US$116.00US$111.1223
Jul ’24US$145.60
US$150.63
+3.5%
9.3%US$175.00US$116.00US$105.9623
Jun ’24US$127.36
US$150.63
+18.3%
9.3%US$175.00US$116.00US$115.1523
May ’24US$138.83
US$136.68
-1.5%
10.2%US$175.00US$105.00US$119.5623
Apr ’24US$129.20
US$135.53
+4.9%
10.0%US$175.00US$105.00US$129.7524
Mar ’24US$122.08
US$135.27
+10.8%
10.1%US$175.00US$105.00US$124.0122
Feb ’24US$127.80
US$130.09
+1.8%
11.4%US$175.00US$100.00US$127.2522
Jan ’24US$127.50
US$127.00
-0.4%
11.2%US$175.00US$100.00US$121.7022
Dec ’23US$123.35
US$125.23
+1.5%
11.5%US$175.00US$100.00US$117.9722

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:57
End of Day Share Price 2024/12/20 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 63 analysts. 28 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