Stryker Corporation (SYK) Stock Valuation — DCF Analysis
Medical - Devices · NYSE
Current Price
$312.20
Intrinsic Value
$390.87
+20.1% margin of safety
COMPETITIVE MOAT
↑Product Innovation Pipeline
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 valuation
A base case discounted cash flow model for SYK estimates an intrinsic value of about $390.87 per share, against a current price of $312.2. The model assumes 11.3% annual free cash flow growth, a 10.0% discount rate, and a 26x exit multiple.
Intrinsic Value
$390.87
Margin of safety
+20.1%
Expected annual return
+4.6%
Base case assumptions: 11.3% annual growth, 10.0% discount rate, 26x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the SYK valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Stryker Corporation respond.
Open DCF 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 Stock Valuation Data
Revenue/Share (TTM)
$66.00
FCF/Share (TTM)
$11.94
ROIC (TTM)
9.8%
ROE (TTM)
15.2%
P/FCF
26.2x
EV/EBITDA
22.4x
FCF Yield
3.82%
Debt/Equity
0.64x
Based on trailing twelve-month data, SYK shows a free cash flow per share of $11.94 and a ROIC of 9.8%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 26.2x and FCF yield of 3.82% are important context metrics when evaluating SYK's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of SYK?
Stryker Corporation currently generates $11.94 in free cash flow per share. At the current price of $312.20, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is SYK undervalued?
SYK trades at a P/FCF ratio of 26.2x with a free cash flow yield of 3.82%. This P/FCF is in a moderate range. However, whether SYK is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value SYK stock using DCF?
To perform a DCF valuation on Stryker Corporation: (1) Start with the trailing free cash flow per share ($11.94) as the base, (2) project future FCF growth over 5-10 years based on Medical - Devices industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting SYK's risk profile — with a debt-to-equity of 0.64x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to SYK?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Stryker Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Medical - Devices trends, then discounting those amounts to today's dollars. SYK's ROIC of 9.8% shows moderate capital returns.
How does WACC affect SYK stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For SYK, with a debt-to-equity ratio of 0.64x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 22.4x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See SYK PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Healthcare valuationsDCF and P/E value SYK with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair 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.