Based on the provided data, here's a concise analysis of ZBH's valuation:
Zimmer Biomet appears fairly valued at current levels. The company's P/E ratio has decreased from 28.59 in Q1 2024 to 23.83 in Q4 2024, showing improved valuation metrics. The EV/EBITDA multiple has also become more attractive, declining from 13.28 to 10.35 over the same period, indicating better operational efficiency.
Recent analyst actions suggest mixed sentiment - while JMP Securities maintains a $140 price target with 38.66% upside, Raymond James lowered their target to $119, reflecting more conservative expectations. The consensus among analysts shows moderate optimism with several maintaining Buy ratings despite recent price target reductions.
The company's Q4 2024 financials show stable performance with revenue of $2.02 billion and net income of $239.4 million, demonstrating consistent profitability. The gross margin remains healthy at 63.21%, though slightly down from 65.36% in Q1 2024.
The current valuation appears reasonable given the company's stable financial metrics and growth prospects, with multiple expansion potential as new product launches unfold through 2025.