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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

P/OCF

9.2
Current
37%
Cheaper
vs 3-y average of 14.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
9.2
=
Market Cap
$19.3B
/
Operating Cash Flow
$1.7B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
9.2
=
Market Cap
$19.3B
/
Operating Cash Flow
$1.7B

Valuation Scenarios

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

If P/OCF returns to its 3-Year Average (14.5), the stock would be worth $126.93 (59% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+78%
Average Upside
64%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 9.2 $80.07
0%
3-Year Average 14.5 $126.93
+59%
5-Year Average 16.4 $142.85
+78%
Industry Average 16.1 $140.28
+75%
Country Average 13.3 $116.46
+45%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
US
Zimmer Biomet Holdings Inc
NYSE:ZBH
15.7B USD 9.2 22.1
US
Intuitive Surgical Inc
NASDAQ:ISRG
161.2B USD 53.2 56.4
US
Abbott Laboratories
NYSE:ABT
158.6B USD 16.6 25.3
US
Stryker Corp
NYSE:SYK
120.5B USD 23.9 37.1
IE
Medtronic PLC
NYSE:MDT
101.9B USD 14 22.1
US
Boston Scientific Corp
NYSE:BSX
84.8B USD 18.7 23.8
US
Edwards Lifesciences Corp
NYSE:EW
47.2B USD 29.6 43
US
IDEXX Laboratories Inc
NASDAQ:IDXX
44.1B USD 37.3 41.7
DE
Siemens Healthineers AG
XETRA:SHL
38.3B EUR 12.6 18.1
US
Becton Dickinson and Co
NYSE:BDX
41.4B USD 12.2 23.5
US
Resmed Inc
NYSE:RMD
30.9B USD 16.1 20.8

Market Distribution

In line with most companies in the United States of America
Percentile
31st
Based on 9 488 companies
31st percentile
9.2
Low
0 — 8.8
Typical Range
8.8 — 20.1
High
20.1 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 8.8
Median 13.3
70th Percentile 20.1
Max 3 188 432.5

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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