Intuitive Surgical, Inc. (ISRG) Stock Valuation — DCF Analysis
Medical - Devices · NASDAQ
Current Price
$411.06
Intrinsic Value
$338.14
-21.6% margin of safety
COMPETITIVE MOAT
↑Dominant installed base
Intuitive Surgical's vast installed base of da Vinci systems creates significant switching costs for hospitals. This entrenched position makes it difficult for competitors to displace their technology.
↑Proprietary technology and IP
The company holds extensive patents and proprietary technology in robotic surgery. This intellectual property barrier protects its market leadership and innovation pipeline.
↑Data-driven ecosystem development
Leveraging da Vinci 5 data to build an AI-driven surgical ecosystem creates network effects. Connected workflows and insights deepen customer reliance and competitive advantage.
INVESTMENT RISKS
↓Increasing competition
New entrants and established medical device companies are developing competing robotic surgery platforms. This intensifies market pressure and could erode market share.
↓Valuation and market sentiment
Recent stock price declines suggest market concerns about valuation or future growth. Negative sentiment can impact investor confidence and stock performance.
↓Regulatory hurdles and adoption
New product approvals and widespread adoption of advanced robotic systems face regulatory scrutiny. Delays or challenges in these areas can hinder growth.
Base case
ISRG base case valuation
A base case discounted cash flow model for ISRG estimates an intrinsic value of about $338.14 per share, against a current price of $411.06. The model assumes 14.5% annual free cash flow growth, a 10.0% discount rate, and a 30x exit multiple.
Intrinsic Value
$338.14
Margin of safety
-21.6%
Expected annual return
-3.8%
Base case assumptions: 14.5% annual growth, 10.0% discount rate, 30x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ISRG valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Intuitive Surgical, Inc. respond.
Open DCF Calculator for ISRGCompany Overview
Intuitive Surgical, Inc. is a leading medical technology firm dedicated to advancing patient care by developing, producing, and commercializing sophisticated tools. These innovations empower medical professionals to deliver superior, accessible, and less-invasive treatment options to patients both within the United States and across international markets. Its flagship offering, the da Vinci Surgical System, facilitates intricate operations through a minimally disruptive approach. Expanding beyond surgical applications, the company also provides the Ion endoluminal system, designed for diagnostic interventions like minimally invasive lung biopsies. Complementing its primary systems, Intuitive Surgical supplies a comprehensive array of instruments, including stapling tools, energy devices, and essential core components. Furthermore, it offers structured training programs to ensure proficient use of its technology, alongside extensive customer support services encompassing installation, repairs, and ongoing maintenance. The firm also integrates digital capabilities to deliver unified, connected solutions that optimize hospital performance through actionable insights. Established in 1995, Intuitive Surgical maintains its corporate headquarters in Sunnyvale, California.
Financial Metrics — ISRG Stock Valuation Data
Revenue/Share (TTM)
$29.82
FCF/Share (TTM)
$7.99
ROIC (TTM)
16.5%
ROE (TTM)
17.0%
P/FCF
51.4x
EV/EBITDA
34.8x
FCF Yield
1.95%
Debt/Equity
0.00x
Based on trailing twelve-month data, ISRG shows a free cash flow per share of $7.99 and a ROIC of 16.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 51.4x and FCF yield of 1.95% are important context metrics when evaluating ISRG's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of ISRG?
Intuitive Surgical, Inc. currently generates $7.99 in free cash flow per share. At the current price of $411.06, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is ISRG undervalued?
ISRG trades at a P/FCF ratio of 51.4x with a free cash flow yield of 1.95%. This elevated P/FCF suggests the market is pricing in significant future growth. However, whether ISRG is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value ISRG stock using DCF?
To perform a DCF valuation on Intuitive Surgical, Inc.: (1) Start with the trailing free cash flow per share ($7.99) as the base, (2) project future FCF growth over 5-10 years based on Medical - Devices industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ISRG's risk profile — with a debt-to-equity of 0.00x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to ISRG?
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 company will produce over the next 5-10 years, shaped by Medical - Devices trends, 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.
How does WACC affect ISRG stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ISRG, with a debt-to-equity ratio of 0.00x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 34.8x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See ISRG PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Healthcare valuationsDCF and P/E value ISRG with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.