We’ve recently updated our valuation analysis.

Zimmer Biomet Holdings Valuation

Is ZBH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

[object Object] Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZBH?

Other financial metrics that can be useful for relative valuation.

ZBH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA13x
PEG Ratio3.7x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average42.8x
RMD ResMed
40.9x12.4%US$32.1b
IDXX IDEXX Laboratories
52.2x12.8%US$35.0b
ABMD Abiomed
64x3.5%US$17.1b
HOLX Hologic
14.2x-9.5%US$18.5b
ZBH Zimmer Biomet Holdings
79.6x21.5%US$25.7b

Price-To-Earnings vs Peers: ZBH is expensive based on its Price-To-Earnings Ratio (79.6x) compared to the peer average (42.8x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a18.4%
n/an/an/a

Price-To-Earnings vs Industry: ZBH is expensive based on its Price-To-Earnings Ratio (79.6x) compared to the US Medical Equipment industry average (33x)


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 Ratio79.6x
Fair PE Ratio36.3x

Price-To-Earnings vs Fair Ratio: ZBH is expensive based on its Price-To-Earnings Ratio (79.6x) compared to the estimated Fair Price-To-Earnings Ratio (36.3x).


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 ($122.28) is trading below our estimate of fair value ($157.78)

Significantly Below Fair Value: ZBH is trading below fair value by more than 20%.


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$122.28
US$125.68
+2.8%
11.4%US$175.00US$100.00n/a22
Nov ’23US$111.84
US$125.64
+12.3%
12.2%US$175.00US$95.00n/a22
Oct ’23US$104.55
US$128.50
+22.9%
10.3%US$175.00US$114.00n/a20
Sep ’23US$106.80
US$128.50
+20.3%
10.3%US$175.00US$114.00n/a20
Aug ’23US$109.76
US$127.05
+15.8%
11.6%US$175.00US$110.00n/a20
Jul ’23US$107.27
US$131.85
+22.9%
9.8%US$175.00US$114.00n/a20
Jun ’23US$119.28
US$132.24
+10.9%
9.6%US$175.00US$114.00n/a21
May ’23US$120.75
US$131.58
+9.0%
11.9%US$175.00US$98.95n/a24
Apr ’23US$127.73
US$130.16
+1.9%
12.0%US$175.00US$98.95n/a26
Mar ’23US$124.14
US$128.83
+3.8%
11.4%US$175.00US$102.00n/a24
Feb ’23US$123.99
US$156.84
+26.5%
11.6%US$192.00US$122.00n/a25
Jan ’23US$127.04
US$165.23
+30.1%
10.0%US$196.00US$122.00n/a26
Dec ’22US$119.79
US$169.29
+41.3%
9.1%US$196.00US$122.00US$123.3524
Nov ’22US$145.79
US$183.59
+25.9%
7.8%US$202.00US$134.00US$111.8427
Oct ’22US$149.47
US$187.54
+25.5%
8.1%US$210.00US$134.00US$104.5528
Sep ’22US$150.87
US$188.07
+24.7%
8.2%US$210.00US$134.00US$106.8028
Aug ’22US$163.42
US$190.46
+16.5%
8.0%US$210.00US$134.00US$109.7628
Jul ’22US$163.14
US$190.82
+17.0%
8.0%US$210.00US$134.00US$107.2728
Jun ’22US$166.22
US$190.82
+14.8%
8.0%US$210.00US$134.00US$119.2828
May ’22US$177.16
US$180.93
+2.1%
9.0%US$200.00US$119.00US$120.7528
Apr ’22US$160.00
US$179.11
+11.9%
9.0%US$199.00US$119.00US$127.7327
Mar ’22US$163.40
US$177.66
+8.7%
8.9%US$199.00US$119.00US$124.1429
Feb ’22US$153.90
US$168.83
+9.7%
11.1%US$193.00US$106.00US$123.9929
Jan ’22US$154.09
US$161.36
+4.7%
10.3%US$193.00US$106.00US$127.0428
Dec ’21US$146.10
US$158.04
+8.2%
9.0%US$175.00US$106.00US$119.7928

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


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