Medical - Instruments & Supplies · NASDAQ
Current Price
$453.83
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Intuitive Surgical, Inc. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Intuitive 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.
Earnings Yield
1.85%
ROE (TTM)
17.0%
Based on trailing twelve-month data, ISRG has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
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.
Whether ISRG is overvalued depends on comparing its PE ratio to Medical - Instruments & Supplies peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Intuitive Surgical, Inc. using PE: (1) Compare the current PE against the Medical - Instruments & Supplies median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
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 17.0%, 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.
