ZBH Valuation

Zimmer Biomet Holdings Inc

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107.540

+0.22(0.205%)1D

Overview
Forecast
Valuation
Earnings

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 12.86 is considered Undervalued compared with the five-year average of 16.37. The fair price of Zimmer Biomet Holdings Inc (ZBH) is between 147.13 to 184.26 according to relative valuation methord. Compared to the current price of 107.32 USD , Zimmer Biomet Holdings Inc is Undervalued By 27.06%.

Relative Value

Fair Zone

147.13-184.26

Current Price：107.32

27.06%

Undervalued

12.91

Trailing

Forward

10.37

EV/EBITDA

Zimmer Biomet Holdings Inc. (ZBH) has a current EV/EBITDA of 10.37. The 5-year average EV/EBITDA is 12.59. The thresholds are as follows: Strongly Undervalued below 8.73, Undervalued between 8.73 and 10.66, Fairly Valued between 14.52 and 10.66, Overvalued between 14.52 and 16.45, and Strongly Overvalued above 16.45. The current Forward EV/EBITDA of 10.37 falls within the Undervalued range.

12.24

EV/EBIT

Zimmer Biomet Holdings Inc. (ZBH) has a current EV/EBIT of 12.24. The 5-year average EV/EBIT is 15.17. The thresholds are as follows: Strongly Undervalued below 10.17, Undervalued between 10.17 and 12.67, Fairly Valued between 17.66 and 12.67, Overvalued between 17.66 and 20.16, and Strongly Overvalued above 20.16. The current Forward EV/EBIT of 12.24 falls within the Undervalued range.

2.50

Zimmer Biomet Holdings Inc. (ZBH) has a current PS of 2.50. The 5-year average PS is 3.38. The thresholds are as follows: Strongly Undervalued below 2.30, Undervalued between 2.30 and 2.84, Fairly Valued between 3.92 and 2.84, Overvalued between 3.92 and 4.46, and Strongly Overvalued above 4.46. The current Forward PS of 2.50 falls within the Undervalued range.

11.17

P/OCF

Zimmer Biomet Holdings Inc. (ZBH) has a current P/OCF of 11.17. The 5-year average P/OCF is 15.06. The thresholds are as follows: Strongly Undervalued below 6.44, Undervalued between 6.44 and 10.75, Fairly Valued between 19.36 and 10.75, Overvalued between 19.36 and 23.67, and Strongly Overvalued above 23.67. The current Forward P/OCF of 11.17 falls within the Historic Trend Line -Fairly Valued range.

15.92

P/FCF

Zimmer Biomet Holdings Inc. (ZBH) has a current P/FCF of 15.92. The 5-year average P/FCF is 21.37. The thresholds are as follows: Strongly Undervalued below 4.20, Undervalued between 4.20 and 12.79, Fairly Valued between 29.96 and 12.79, Overvalued between 29.96 and 38.54, and Strongly Overvalued above 38.54. The current Forward P/FCF of 15.92 falls within the Historic Trend Line -Fairly Valued range.

Zimmer Biomet Holdings Inc (ZBH) has a current Price-to-Book (P/B) ratio of 1.69. Compared to its 3-year average P/B ratio of 1.91 , the current P/B ratio is approximately -11.66% higher. Relative to its 5-year average P/B ratio of 2.10, the current P/B ratio is about -19.50% 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 4.12%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.82% , the current FCF yield is about -100.00% lower.

1.70

P/B

Median3y

1.91

Median5y

2.10

5.83

FCF Yield

Median3y

4.12

Median5y

3.82

Competitors Valuation Multiple

The average P/S ratio for ZBH's competitors is 4.52, providing a benchmark for relative valuation. Zimmer Biomet Holdings Inc Corp (ZBH) exhibits a P/S ratio of 2.50, which is -44.76% above the industry average. Given its robust revenue growth of 6.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

ZBH.N

Zimmer Biomet Holdings Inc

Koninklijke Philips NV

West Pharmaceutical Services Inc

5.65

9.17%

17.58B

Performance Decomposition

Market capitalization of ZBH decreased by 6.44% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 20.46 to 26.11.

The secondary factor is the Revenue Growth, contributed 6.97%to the performance.

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

6.97%

1.94B → 2.08B

Revenue Growth

-41.05%

12.52 → 7.38

Margin Expansion

27.64%

20.46 → 26.11

P/E Change

-6.44%