Stryker consistently introduces advanced medical devices like the TPX HD power tool and Pangea Plating System. This pipeline fuels market share gains and strengthens customer loyalty.

↑Strong Brand Reputation

As a global leader in medical technologies, Stryker benefits from a well-established reputation for quality and reliability. This trust is crucial for surgeons and hospitals selecting critical equipment.

↑Diversified Product Portfolio

Stryker's broad range of offerings across orthopedics, medical and surgical, and neurotechnology and spine provides resilience. This diversification mitigates risks associated with any single product category.

INVESTMENT RISKS

↓Regulatory Hurdles

The medical device industry faces stringent regulatory approvals for new products. Delays or rejections can impact launch timelines and revenue generation.

↓Intense Competition

Stryker operates in a highly competitive landscape with numerous players vying for market share. Competitors can erode pricing power and necessitate continuous innovation.

↓Healthcare Reimbursement Pressures

Changes in healthcare policies and reimbursement rates can affect the adoption and profitability of medical devices. This could impact Stryker's revenue streams.

Base case

SYK base case PE valuation

A base case PE valuation for SYK estimates a fair value of about $378.4 per share, against a current price of $312.2. The model assumes 11.3% annual earnings growth, a 36x target PE multiple, and a 10% discount rate.

Intrinsic Value

$378.4

Margin of safety

+17.5%

Expected annual return

+3.9%

Base case assumptions: 11.3% annual earnings growth, 36x 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 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.

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Company 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)

35.8x

PEG Ratio

2.18

Earnings Yield

2.79%

ROE (TTM)

15.2%

Revenue/Share (TTM)

$66.00

Dividend Yield

1.10%

Debt/Equity

0.64x

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 35.8x combined with a PEG ratio of 2.18 provides a growth-adjusted perspective. A PEG above 2.0 suggests SYK 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 SYK stock using PE ratio?

To value Stryker Corporation using PE: (1) Compare the current PE (35.8x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (2.18) 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 2.18, calculated by dividing the PE ratio (35.8x) 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 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 15.2%, 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

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P/E and DCF value SYK with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.

Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.

This is an estimate, not investment advice.