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Zimmer Biomet Holdings Inc
NYSE:ZBH

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Zimmer Biomet Holdings Inc
NYSE:ZBH
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Price: 80.07 USD -3.3% Market Closed
Market Cap: $15.9B

EV/FCFF

19.5
Current
36%
Cheaper
vs 3-y average of 30.4

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
19.5
=
Enterprise Value
$25.6B
/
Free Cash Flow to Firm
$1.1B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
19.5
=
Enterprise Value
$25.6B
/
Free Cash Flow to Firm
$1.1B

Valuation Scenarios

Zimmer Biomet Holdings Inc is trading below its 3-year average

If EV/FCFF returns to its 3-Year Average (30.4), the stock would be worth $124.46 (55% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+55%
Average Upside
36%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 19.5 $80.07
0%
3-Year Average 30.4 $124.46
+55%
5-Year Average 29.5 $120.82
+51%
Industry Average 23 $94.36
+18%
Country Average 23.2 $95.13
+19%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
US
Zimmer Biomet Holdings Inc
NYSE:ZBH
15.7B USD 19.5 22.1
US
Intuitive Surgical Inc
NASDAQ:ISRG
161.2B USD 62.3 56.4
US
Abbott Laboratories
NYSE:ABT
158.6B USD 21.6 25.3
US
Stryker Corp
NYSE:SYK
120.5B USD 30.7 37.1
IE
Medtronic PLC
NYSE:MDT
101.9B USD 22.4 22.1
US
Boston Scientific Corp
NYSE:BSX
84.8B USD 25.7 23.8
US
Edwards Lifesciences Corp
NYSE:EW
47.2B USD 32.6 43
US
IDEXX Laboratories Inc
NASDAQ:IDXX
44.1B USD 42.6 41.7
DE
Siemens Healthineers AG
XETRA:SHL
38.3B EUR 20.5 18.1
US
Becton Dickinson and Co
NYSE:BDX
41.4B USD 21.9 23.5
US
Resmed Inc
NYSE:RMD
30.9B USD 16.8 20.8

Market Distribution

In line with most companies in the United States of America
Percentile
42st
Based on 8 393 companies
42st percentile
19.5
Low
0 — 15.4
Typical Range
15.4 — 35.1
High
35.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 15.4
Median 23.2
70th Percentile 35.1
Max 3 178 983.5

Zimmer Biomet Holdings Inc
Glance View

Zimmer Biomet Holdings Inc. stands as a prominent player in the medical device industry, specializing in musculoskeletal healthcare. Emerging from a rich legacy that dates back to its origins in the early 20th century, the company has carved out its niche by innovating in the orthopedic reconstruction sector. Zimmer Biomet operates primarily through designing, manufacturing, and marketing a comprehensive range of orthopedic products, which include joint replacement implants, such as knees, hips, and shoulders, as well as products used for fracture fixation and bone growth stimulation. The innovative edge of Zimmer Biomet lies in its commitment to improving patient outcomes and enhancing the quality of life through advanced surgical and robotic technologies. The company invests significantly in R&D to maintain its competitive edge, constantly pushing the boundaries in personalized solutions and minimally invasive surgery. The company generates revenue by selling its orthopedic and surgical products directly to hospitals, surgical centers, and healthcare providers worldwide. Zimmer Biomet's business model is heavily reliant on the relationships it builds with orthopedic surgeons and healthcare institutions, positioning itself as an essential partner in delivering sophisticated solutions for musculoskeletal health. By focusing on comprehensive, integrated solutions, Zimmer Biomet not only addresses the immediate surgical needs but also engages with the continuum of care in rehabilitation and patient recovery. The company’s strategic acquisitions, sophisticated product pipeline, and global market presence enable it to capture a significant share of the medical device market, ensuring its role as a stalwart in transforming the future of healthcare.

ZBH Intrinsic Value
122.08 USD
Undervaluation 34%
Intrinsic Value
Price $80.07
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