Medical - Instruments & Supplies · NASDAQ
Current Price
$453.83
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Intuitive Surgical, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for ISRGIntuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System to enable complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung. It also provides a suite of stapling, energy, and core instrumentation for its surgical systems; progressive learning pathways to support the use of its technology; a complement of services to its customers, including support, installation, repair, and maintenance; and integrated digital capabilities providing unified and connected offerings, streamlining performance for hospitals with program-enhancing insights. The company was incorporated in 1995 and is headquartered in Sunnyvale, California.
ROIC (TTM)
16.5%
ROE (TTM)
17.0%
FCF Yield
1.76%
Based on trailing twelve-month data, ISRG shows a free cash flow per share of N/A and a ROIC of 16.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 1.76% are important context metrics when evaluating ISRG's stock valuation relative to peers.
The intrinsic value of ISRG depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ISRG is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $453.83. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Intuitive Surgical, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Medical - Instruments & Supplies industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ISRG's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Intuitive Surgical, Inc., this means projecting how much free cash flow the Medical - Instruments & Supplies will produce over the next 5-10 years, then discounting those amounts to today's dollars. ISRG's ROIC of 16.5% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ISRG, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
