Intuitive Surgical, Inc. (ISRG) Fair Value & PE Analysis
Medical - Devices · NASDAQ
Current Price
$411.06
PE Ratio (TTM)
49.0x
Intrinsic Value
$549.53
+25.2% margin of safety
What Is Intuitive Surgical, Inc.'s Fair Value?
As of 2026-06-12, applying a 49.0x earnings multiple to Intuitive Surgical, Inc.'s (ISRG) earnings per share of $8.39 yields a fair value estimate of $549.53 per share, versus a market price of $411.06.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $476.54 to $631.09. 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 our PE model works · Recalculate in PE mode · ISRG intrinsic value (DCF view)
Is Intuitive Surgical, Inc. (ISRG) Overvalued?
At $411.06, ISRG trades about 25.2% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
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 PE valuation
Intrinsic Value
$549.53
Margin of safety
+25.2%
Expected annual return
+6.0%
Base case assumptions: 14.5% annual earnings growth, 49x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
49.0x
PEG Ratio
2.38
Earnings Yield
2.04%
ROE (TTM)
17.0%
Revenue/Share (TTM)
$29.82
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 - Devices peers and the company's own historical range.
Is ISRG overvalued based on PE ratio?
ISRG's PE of 49.0x combined with a PEG ratio of 2.38 provides a growth-adjusted perspective. A PEG above 2.0 suggests ISRG may be richly valued even accounting for growth. 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 ISRG stock using PE ratio?
To value Intuitive Surgical, Inc. using PE: (1) Compare the current PE (49.0x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (2.38) 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 2.38, calculated by dividing the PE ratio (49.0x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. 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 - Devices 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.
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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.