Intuitive Surgical, Inc. (ISRG) Fair Value & PE Analysis
Medical - Instruments & Supplies · NASDAQ
Current Price
$378.81
PE Ratio (TTM)
42.8x
Intrinsic Value
$472.88
+19.9% margin of safety
What Is Intuitive Surgical, Inc.'s Fair Value?
As of 2026-08-21, applying a 42.8x earnings multiple to Intuitive Surgical, Inc.'s (ISRG) earnings per share of $8.85 yields a fair value estimate of $472.88 per share, versus a market price of $378.81.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $406.64 to $547.23. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · ISRG intrinsic value (DCF view)
Is Intuitive Surgical, Inc. (ISRG) Overvalued?
At $378.81, ISRG trades about 19.9% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Proprietary Technology & IP
Intuitive Surgical holds extensive patents for its da Vinci surgical systems. This intellectual property creates a significant barrier to entry for competitors seeking to replicate its advanced robotic technology.
↑High Switching Costs for Hospitals
Hospitals invest heavily in da Vinci systems, training, and infrastructure. The cost and disruption of switching to a competitor's platform are substantial, fostering customer loyalty.
↑Established Ecosystem & Training
ISRG has built a comprehensive ecosystem including surgeon training programs and a large installed base. This network effect makes it difficult for new entrants to gain traction and displace established relationships.
INVESTMENT RISKS
↓Slowing Procedure Growth
Recent reports indicate a slowdown in US procedure growth, potentially due to factors like ACA-related care deferrals. This trend could impact revenue if it persists beyond temporary headwinds.
↓Regulatory Scrutiny & Approval
The medical device industry is subject to stringent regulatory oversight. Any delays or issues in obtaining approvals for new products or enhancements could hinder growth.
↓Technological Obsolescence
While ISRG has strong IP, rapid advancements in robotics and AI could eventually lead to its current technology becoming less competitive. Continuous innovation is crucial.
Base case
ISRG base case PE valuation
Intrinsic Value
$472.88
Margin of safety
+19.9%
Expected annual return
+4.5%
Base case assumptions: 12.6% annual earnings growth, 42.8x 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 ISRG PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Intuitive Surgical, Inc. respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
42.8x
PEG Ratio
2.02
Earnings Yield
2.34%
ROE (TTM)
17.8%
Revenue/Share (TTM)
$31.13
Frequently Asked Questions
What is the PE ratio of ISRG?
The trailing twelve-month PE ratio of ISRG reflects how much investors pay per dollar of Intuitive Surgical, Inc.'s earnings. This metric is most useful when compared to Medical - Instruments & Supplies peers and the company's own historical range.
Is ISRG overvalued based on PE ratio?
ISRG's PE of 42.8x combined with a PEG ratio of 2.02 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Instruments & Supplies, a DCF analysis may be more appropriate.
How do I value ISRG stock using PE ratio?
To value Intuitive Surgical, Inc. using PE: (1) Compare the current PE (42.8x) against the Medical - Instruments & Supplies median to assess relative pricing, (2) check the PEG ratio (2.02) 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 ISRG?
ISRG's PEG ratio is 2.02, calculated by dividing the PE ratio (42.8x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ISRG stock valuation?
PE ratio gives a quick relative read — how ISRG is priced versus Medical - Instruments & Supplies peers. DCF provides an absolute value based on projected free cash flows. For ISRG, with a strong ROE of 17.8%, 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 ISRG 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 ISRG 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.