Stryker Corporation (SYK) Stock Valuation — PE Analysis
Medical - Devices · NYSE
Current Price
$329.45
PE Ratio (TTM)
33.9x
Intrinsic Value
$400.28
+17.7% margin of safety
COMPETITIVE MOAT
↑Strong Brand and Reputation
Stryker's established brand in surgical and medical technologies fosters trust among healthcare professionals. This reputation drives repeat business and attracts new customers seeking reliable solutions.
↑Product Innovation and R&D
Continuous investment in research and development leads to a pipeline of innovative medical devices. This allows Stryker to maintain a competitive edge and command premium pricing for its advanced offerings.
↑Global Sales and Distribution Network
An extensive global sales force and distribution network provide broad market access. This infrastructure facilitates efficient product delivery and strong customer relationships worldwide.
INVESTMENT RISKS
↓Regulatory Scrutiny and Compliance
Stryker operates in a heavily regulated industry. Changes in regulations or compliance failures could lead to product recalls, fines, and reputational damage.
↓Dependence on Key Product Lines
While diversified, Stryker's success is tied to its major product segments. Significant disruptions or obsolescence in these areas could impact overall financial performance.
↓Economic Downturns and Healthcare Spending
Economic slowdowns can reduce healthcare budgets and elective procedure volumes. This could negatively affect demand for Stryker's products and services.
Base case
SYK base case PE valuation
At a current price of $329.45, the base case PE valuation puts SYK fair value near $400.28 per share. That figure assumes 11.3% yearly earnings growth, a target PE multiple of 33.89x, and a 10% discount rate.
Intrinsic Value
$400.28
Margin of safety
+17.7%
Expected annual return
+4.0%
Base case assumptions: 11.3% annual earnings growth, 33.89x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SYK PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Stryker Corporation respond.
Open PE Calculator for SYKCompany Overview
Stryker Corporation functions as a prominent medical technology enterprise, with its operations structured across two main divisions. The Orthopaedics and Spine segment specializes in providing implants for joint replacement procedures (including hips and knees), as well as solutions for trauma and extremities surgeries. This division also furnishes a comprehensive suite of spinal implant products, such as cervical, thoracolumbar, and interbody systems, utilized in addressing spinal injuries, deformities, and degenerative conditions. The MedSurg and Neurotechnology division offers an extensive array of products, encompassing advanced surgical equipment, surgical navigation systems, endoscopic and communication tools, patient handling devices, emergency medical apparatus, and critical care disposable items. This segment also deals in reprocessed and remanufactured medical devices, catering to various medical specialties. Furthermore, its neurotechnology offerings include devices for minimally invasive endovascular techniques, instruments for brain and open skull-based surgical interventions, and orthobiologic and biosurgery products like synthetic bone grafts and vertebral augmentation solutions. It also provides specialized minimally invasive products for treating acute ischemic and hemorrhagic strokes, alongside craniomaxillofacial implants, which include cranial, maxillofacial, and chest wall devices, in addition to dural substitutes and sealants. Stryker distributes its diverse portfolio to medical professionals, hospitals, and other healthcare institutions in approximately 75 countries, leveraging its network of company-owned subsidiaries, regional branches, and independent dealers and distributors. Established in 1941, Stryker Corporation is headquartered in Kalamazoo, Michigan.
Financial Metrics — SYK PE Stock Valuation Data
PE Ratio (TTM)
33.9x
PEG Ratio
1.25
Earnings Yield
2.95%
ROE (TTM)
16.4%
Revenue/Share (TTM)
$67.37
Dividend Yield
1.06%
Debt/Equity
0.62x
Frequently Asked Questions
What is the PE ratio of SYK?
The trailing twelve-month PE ratio of SYK reflects how much investors pay per dollar of Stryker Corporation's earnings. This metric is most useful when compared to Medical - Devices peers and the company's own historical range.
Is SYK overvalued based on PE ratio?
SYK's PE of 33.9x combined with a PEG ratio of 1.25 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Devices, a DCF analysis may be more appropriate.
How do I value SYK stock using PE ratio?
To value Stryker Corporation using PE: (1) Compare the current PE (33.9x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (1.25) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of SYK?
SYK's PEG ratio is 1.25, calculated by dividing the PE ratio (33.9x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for SYK stock valuation?
PE ratio gives a quick relative read — how SYK is priced versus Medical - Devices peers. DCF provides an absolute value based on projected free cash flows. For SYK, with a strong ROE of 16.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See SYK DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value SYK with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.