ISRG Relative Valuation
ISRG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, ISRG is overvalued; if below, it's undervalued.
Historical Valuation
Intuitive Surgical Inc (ISRG) is now in the Fair zone, suggesting that its current forward PE ratio of 60.51 is considered Fairly compared with the five-year average of 57.17. The fair price of Intuitive Surgical Inc (ISRG) is between 443.28 to 593.48 according to relative valuation methord.
Relative Value
Fair Zone
443.28-593.48
Current Price:592.27
Fair
60.51
PE
1Y
3Y
5Y
42.27
EV/EBITDA
Intuitive Surgical Inc. (ISRG) has a current EV/EBITDA of 42.27. The 5-year average EV/EBITDA is 38.54. The thresholds are as follows: Strongly Undervalued below 24.51, Undervalued between 24.51 and 31.52, Fairly Valued between 45.55 and 31.52, Overvalued between 45.55 and 52.56, and Strongly Overvalued above 52.56. The current Forward EV/EBITDA of 42.27 falls within the Historic Trend Line -Fairly Valued range.
48.65
EV/EBIT
Intuitive Surgical Inc. (ISRG) has a current EV/EBIT of 48.65. The 5-year average EV/EBIT is 44.21. The thresholds are as follows: Strongly Undervalued below 27.71, Undervalued between 27.71 and 35.96, Fairly Valued between 52.46 and 35.96, Overvalued between 52.46 and 60.71, and Strongly Overvalued above 60.71. The current Forward EV/EBIT of 48.65 falls within the Historic Trend Line -Fairly Valued range.
18.15
PS
Intuitive Surgical Inc. (ISRG) has a current PS of 18.15. The 5-year average PS is 16.43. The thresholds are as follows: Strongly Undervalued below 10.35, Undervalued between 10.35 and 13.39, Fairly Valued between 19.47 and 13.39, Overvalued between 19.47 and 22.51, and Strongly Overvalued above 22.51. The current Forward PS of 18.15 falls within the Historic Trend Line -Fairly Valued range.
44.41
P/OCF
Intuitive Surgical Inc. (ISRG) has a current P/OCF of 44.41. The 5-year average P/OCF is 42.63. The thresholds are as follows: Strongly Undervalued below 27.62, Undervalued between 27.62 and 35.13, Fairly Valued between 50.14 and 35.13, Overvalued between 50.14 and 57.65, and Strongly Overvalued above 57.65. The current Forward P/OCF of 44.41 falls within the Historic Trend Line -Fairly Valued range.
56.40
P/FCF
Intuitive Surgical Inc. (ISRG) has a current P/FCF of 56.40. The 5-year average P/FCF is 58.83. The thresholds are as follows: Strongly Undervalued below 39.84, Undervalued between 39.84 and 49.34, Fairly Valued between 68.32 and 49.34, Overvalued between 68.32 and 77.82, and Strongly Overvalued above 77.82. The current Forward P/FCF of 56.40 falls within the Historic Trend Line -Fairly Valued range.
Intuitive Surgical Inc (ISRG) has a current Price-to-Book (P/B) ratio of 11.78. Compared to its 3-year average P/B ratio of 10.18 , the current P/B ratio is approximately 15.76% higher. Relative to its 5-year average P/B ratio of 9.62, the current P/B ratio is about 22.53% higher. Intuitive Surgical Inc (ISRG) has a Forward Free Cash Flow (FCF) yield of approximately 1.14%. Compared to its 3-year average FCF yield of 0.81%, the current FCF yield is approximately 41.43% lower. Relative to its 5-year average FCF yield of 1.08% , the current FCF yield is about 5.09% lower.
11.78
P/B
Median3y
10.18
Median5y
9.62
1.14
FCF Yield
Median3y
0.81
Median5y
1.08
Competitors Valuation Multiple
The average P/S ratio for ISRG's competitors is 7.58, providing a benchmark for relative valuation. Intuitive Surgical Inc Corp (ISRG) exhibits a P/S ratio of 18.15, which is 139.37% above the industry average. Given its robust revenue growth of 22.91%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ISRG increased by 3.57% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.04B to 2.51B.
The secondary factor is the Margin Expansion, contributed 1.11%to the performance.
Overall, the performance of ISRG in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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Frequently Asked Questions
Is Intuitive Surgical Inc (ISRG) currently overvalued or undervalued?
Intuitive Surgical Inc (ISRG) is now in the Fair zone, suggesting that its current forward PE ratio of 60.51 is considered Fairly compared with the five-year average of 57.17. The fair price of Intuitive Surgical Inc (ISRG) is between 443.28 to 593.48 according to relative valuation methord.
What is Intuitive Surgical Inc (ISRG) fair value?
ISRG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Intuitive Surgical Inc (ISRG) is between 443.28 to 593.48 according to relative valuation methord.
How does ISRG's valuation metrics compare to the industry average?
The average P/S ratio for ISRG's competitors is 7.58, providing a benchmark for relative valuation. Intuitive Surgical Inc Corp (ISRG) exhibits a P/S ratio of 18.15, which is 139.37% above the industry average. Given its robust revenue growth of 22.91%, this premium appears sustainable.
What is the current P/B ratio for Intuitive Surgical Inc (ISRG) as of Jan 09 2026?
As of Jan 09 2026, Intuitive Surgical Inc (ISRG) has a P/B ratio of 11.78. This indicates that the market values ISRG at 11.78 times its book value.
What is the current FCF Yield for Intuitive Surgical Inc (ISRG) as of Jan 09 2026?
As of Jan 09 2026, Intuitive Surgical Inc (ISRG) has a FCF Yield of 1.14%. This means that for every dollar of Intuitive Surgical Inc’s market capitalization, the company generates 1.14 cents in free cash flow.
What is the current Forward P/E ratio for Intuitive Surgical Inc (ISRG) as of Jan 09 2026?
As of Jan 09 2026, Intuitive Surgical Inc (ISRG) has a Forward P/E ratio of 60.51. This means the market is willing to pay $60.51 for every dollar of Intuitive Surgical Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Intuitive Surgical Inc (ISRG) as of Jan 09 2026?
As of Jan 09 2026, Intuitive Surgical Inc (ISRG) has a Forward P/S ratio of 18.15. This means the market is valuing ISRG at $18.15 for every dollar of expected revenue over the next 12 months.