ZBH Relative Valuation
ZBH'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, ZBH is overvalued; if below, it's undervalued.
Historical Valuation
Zimmer Biomet Holdings Inc (ZBH) is now in the Undervalued zone, suggesting that its current forward PE ratio of 11.07 is considered Undervalued compared with the five-year average of 15.95. The fair price of Zimmer Biomet Holdings Inc (ZBH) is between 173.36 to 212.09 according to relative valuation methord. Compared to the current price of 93.10 USD , Zimmer Biomet Holdings Inc is Undervalued By 46.3%.
Relative Value
Fair Zone
173.36-212.09
Current Price：93.10
46.3%
Undervalued
11.08
PE
1Y
3Y
5Y
Trailing
Forward
9.07
EV/EBITDA
Zimmer Biomet Holdings Inc. (ZBH) has a current EV/EBITDA of 9.07. The 5-year average EV/EBITDA is 12.31. The thresholds are as follows: Strongly Undervalued below 8.34, Undervalued between 8.34 and 10.32, Fairly Valued between 14.29 and 10.32, Overvalued between 14.29 and 16.27, and Strongly Overvalued above 16.27. The current Forward EV/EBITDA of 9.07 falls within the Undervalued range.
10.90
EV/EBIT
Zimmer Biomet Holdings Inc. (ZBH) has a current EV/EBIT of 10.90. The 5-year average EV/EBIT is 14.80. The thresholds are as follows: Strongly Undervalued below 9.74, Undervalued between 9.74 and 12.27, Fairly Valued between 17.33 and 12.27, Overvalued between 17.33 and 19.86, and Strongly Overvalued above 19.86. The current Forward EV/EBIT of 10.90 falls within the Undervalued range.
2.16
PS
Zimmer Biomet Holdings Inc. (ZBH) has a current PS of 2.16. The 5-year average PS is 3.30. The thresholds are as follows: Strongly Undervalued below 2.12, Undervalued between 2.12 and 2.71, Fairly Valued between 3.89 and 2.71, Overvalued between 3.89 and 4.48, and Strongly Overvalued above 4.48. The current Forward PS of 2.16 falls within the Undervalued range.
6.60
P/OCF
Zimmer Biomet Holdings Inc. (ZBH) has a current P/OCF of 6.60. The 5-year average P/OCF is 14.46. The thresholds are as follows: Strongly Undervalued below 5.59, Undervalued between 5.59 and 10.03, Fairly Valued between 18.89 and 10.03, Overvalued between 18.89 and 23.32, and Strongly Overvalued above 23.32. The current Forward P/OCF of 6.60 falls within the Undervalued range.
9.31
P/FCF
Zimmer Biomet Holdings Inc. (ZBH) has a current P/FCF of 9.31. The 5-year average P/FCF is 20.42. The thresholds are as follows: Strongly Undervalued below 3.35, Undervalued between 3.35 and 11.89, Fairly Valued between 28.96 and 11.89, Overvalued between 28.96 and 37.49, and Strongly Overvalued above 37.49. The current Forward P/FCF of 9.31 falls within the Undervalued range.
Zimmer Biomet Holdings Inc (ZBH) has a current Price-to-Book (P/B) ratio of 1.45. Compared to its 3-year average P/B ratio of 1.88 , the current P/B ratio is approximately -22.86% higher. Relative to its 5-year average P/B ratio of 2.04, the current P/B ratio is about -29.21% higher. Zimmer Biomet Holdings Inc (ZBH) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.31%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.01% , the current FCF yield is about -100.00% lower.
1.45
P/B
Median3y
1.88
Median5y
2.04
6.54
FCF Yield
Median3y
4.31
Median5y
4.01
Competitors Valuation Multiple
The average P/S ratio for ZBH's competitors is , providing a benchmark for relative valuation. Zimmer Biomet Holdings Inc Corp (ZBH) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 9.71%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of ZBH decreased by 11.81% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 1.82B to 2.00B.
The secondary factor is the P/E Change, contributed -6.07%to the performance.
Overall, the performance of ZBH in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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