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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: 91.26 USD -1.28% Market Closed
Market Cap: $18.1B

EV/EBIT

17.5
Current
4%
Cheaper
vs 3-y average of 18.2

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
17.5
=
Enterprise Value
$25.6B
/
EBIT
$1.4B

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
17.5
=
Enterprise Value
$25.6B
/
EBIT
$1.4B

Valuation Scenarios

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

If EV/EBIT returns to its 3-Year Average (18.2), the stock would be worth $95.08 (4% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+24%
Average Upside
13%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 17.5 $91.26
0%
3-Year Average 18.2 $95.08
+4%
5-Year Average 21.6 $112.95
+24%
Industry Average 19.2 $100.62
+10%
Country Average 19.6 $102.58
+12%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$25.6B
/
Jan 2026
$1.4B
=
17.5
Current
$25.6B
/
Dec 2026
$2.3B
=
11.2
Forward
$25.6B
/
Dec 2027
$2.4B
=
10.7
Forward
$25.6B
/
Dec 2028
$2.5B
=
10.3
Forward
$25.6B
/
Dec 2029
$2.7B
=
9.5
Forward
$25.6B
/
Dec 2030
$2.8B
=
9
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
US
Zimmer Biomet Holdings Inc
NYSE:ZBH
17.8B USD 17.5 25.2
US
Intuitive Surgical Inc
NASDAQ:ISRG
171.2B USD 55.9 60
US
Abbott Laboratories
NYSE:ABT
158.3B USD 18.8 25.2
US
Stryker Corp
NYSE:SYK
125.3B USD 23.9 38.6
IE
Medtronic PLC
NYSE:MDT
106.9B USD 18.8 23.2
US
Boston Scientific Corp
NYSE:BSX
92B USD 24.3 25.8
DE
Siemens Healthineers AG
XETRA:SHL
40B EUR 15.1 18.9
US
Edwards Lifesciences Corp
NYSE:EW
48.9B USD 25.8 44.6
US
IDEXX Laboratories Inc
NASDAQ:IDXX
45.1B USD 33.3 42.6
US
Becton Dickinson and Co
NYSE:BDX
43.3B USD 16.6 24.7
US
Resmed Inc
NYSE:RMD
32B USD 16.8 21.6

Market Distribution

In line with most companies in the United States of America
Percentile
42nd
Based on 8 638 companies
42nd percentile
17.5
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

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 25%
Intrinsic Value
Price $91.26
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