SYK Valuation

Stryker Corp

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400.410

-0.16(-0.040%)1D

Overview
Forecast
Valuation
Earnings

SYK Relative Valuation

SYK'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, SYK is overvalued; if below, it's undervalued.

Historical Valuation

Stryker Corp (SYK) is now in the Fair zone, suggesting that its current forward PE ratio of 29.44 is considered Fairly compared with the five-year average of 26.23. The fair price of Stryker Corp (SYK) is between 357.73 to 405.08 according to relative valuation methord.

Relative Value

Fair Zone

357.73-405.08

Current Price：400.41

Fair

29.44

Trailing

Forward

23.91

EV/EBITDA

Stryker Corp. (SYK) has a current EV/EBITDA of 23.91. The 5-year average EV/EBITDA is 21.22. The thresholds are as follows: Strongly Undervalued below 17.97, Undervalued between 17.97 and 19.60, Fairly Valued between 22.85 and 19.60, Overvalued between 22.85 and 24.48, and Strongly Overvalued above 24.48. The current Forward EV/EBITDA of 23.91 falls within the Overvalued range.

25.18

EV/EBIT

Stryker Corp. (SYK) has a current EV/EBIT of 25.18. The 5-year average EV/EBIT is 23.03. The thresholds are as follows: Strongly Undervalued below 19.75, Undervalued between 19.75 and 21.39, Fairly Valued between 24.67 and 21.39, Overvalued between 24.67 and 26.31, and Strongly Overvalued above 26.31. The current Forward EV/EBIT of 25.18 falls within the Overvalued range.

6.07

Stryker Corp. (SYK) has a current PS of 6.07. The 5-year average PS is 5.32. The thresholds are as follows: Strongly Undervalued below 4.30, Undervalued between 4.30 and 4.81, Fairly Valued between 5.83 and 4.81, Overvalued between 5.83 and 6.34, and Strongly Overvalued above 6.34. The current Forward PS of 6.07 falls within the Overvalued range.

30.33

P/OCF

Stryker Corp. (SYK) has a current P/OCF of 30.33. The 5-year average P/OCF is 26.24. The thresholds are as follows: Strongly Undervalued below 18.15, Undervalued between 18.15 and 22.19, Fairly Valued between 30.29 and 22.19, Overvalued between 30.29 and 34.34, and Strongly Overvalued above 34.34. The current Forward P/OCF of 30.33 falls within the Overvalued range.

39.35

P/FCF

Stryker Corp. (SYK) has a current P/FCF of 39.35. The 5-year average P/FCF is 34.03. The thresholds are as follows: Strongly Undervalued below 25.47, Undervalued between 25.47 and 29.75, Fairly Valued between 38.32 and 29.75, Overvalued between 38.32 and 42.60, and Strongly Overvalued above 42.60. The current Forward P/FCF of 39.35 falls within the Overvalued range.

Stryker Corp (SYK) has a current Price-to-Book (P/B) ratio of 7.31. Compared to its 3-year average P/B ratio of 6.41 , the current P/B ratio is approximately 14.06% higher. Relative to its 5-year average P/B ratio of 6.49, the current P/B ratio is about 12.68% higher. Stryker Corp (SYK) has a Forward Free Cash Flow (FCF) yield of approximately 2.34%. Compared to its 3-year average FCF yield of 2.29%, the current FCF yield is approximately 2.19% lower. Relative to its 5-year average FCF yield of 2.52% , the current FCF yield is about -7.12% lower.

7.31

P/B

Median3y

6.41

Median5y

6.49

2.34

FCF Yield

Median3y

2.29

Median5y

2.52

Competitors Valuation Multiple

The average P/S ratio for SYK's competitors is 7.31, providing a benchmark for relative valuation. Stryker Corp Corp (SYK) exhibits a P/S ratio of 6.07, which is -17.04% above the industry average. Given its robust revenue growth of 11.88%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Boston Scientific Corp

Intuitive Surgical Inc

Thermo Fisher Scientific Inc

Performance Decomposition

Market capitalization of SYK increased by 22.28% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 39.72 to 54.11.

The secondary factor is the Revenue Growth, contributed 11.88%to the performance.

Overall, the performance of SYK in the past 1 year is driven by P/E Change. Which is more unsustainable.

11.88%

5.24B → 5.87B

Revenue Growth

-25.82%

15.03 → 11.15

Margin Expansion

36.22%

39.72 → 54.11

P/E Change

22.28%