Zimmer Biomet Valuation

ZBH Stock  USD 131.98  0.63  0.48%   
At this time, the company appears to be overvalued. Zimmer Biomet Holdings maintains a prevalent Real Value of $123.62 per share. The last-minute price of the company is $131.98. Our model calculates the value of Zimmer Biomet Holdings from examining the company fundamentals such as Current Valuation of 31.72 B, return on asset of 0.044, and Profit Margin of 0.14 % as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors encourage purchasing undervalued securities and trading away overvalued securities since, at some point, asset prices and their ongoing real values will grow together.
Price Book
2.1012
Enterprise Value
31.7 B
Enterprise Value Ebitda
14.2874
Price Sales
3.6525
Forward PE
15.9236
Overvalued
Today
131.98
Please note that Zimmer Biomet's price fluctuation is very steady at this time. Calculation of the real value of Zimmer Biomet Holdings is based on 3 months time horizon. Increasing Zimmer Biomet's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Zimmer Biomet Holdings is useful when determining the fair value of the Zimmer stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Zimmer Biomet. Since Zimmer Biomet is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Zimmer Stock. However, Zimmer Biomet's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  131.98 Real  123.62 Target  143.78 Hype  132.61 Naive  133.49
The real value of Zimmer Stock, also known as its intrinsic value, is the underlying worth of Zimmer Biomet Holdings Company, which is reflected in its stock price. It is based on Zimmer Biomet's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Zimmer Biomet's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Zimmer Biomet's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
122.41
Downside
123.62
Real Value
145.92
Upside
Estimating the potential upside or downside of Zimmer Biomet Holdings helps investors to forecast how Zimmer stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Zimmer Biomet more accurately as focusing exclusively on Zimmer Biomet's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.801.871.96
Details
Hype
Prediction
LowEstimatedHigh
131.40132.61133.82
Details
Potential
Annual Dividend
LowForecastedHigh
0.640.640.64
Details
28 Analysts
Consensus
LowTarget PriceHigh
130.84143.78159.60
Details

Zimmer Biomet Investments

(637.07 Million)

Zimmer Biomet Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Zimmer Biomet's current stock value. Our valuation model uses many indicators to compare Zimmer Biomet value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Zimmer Biomet competition to find correlations between indicators driving Zimmer Biomet's intrinsic value. More Info.
Zimmer Biomet Holdings is rated third in last dividend paid category among related companies. It is rated fourth in price to book category among related companies fabricating about  2.19  of Price To Book per Last Dividend Paid. The current Price To Book Ratio is estimated to decrease to 1.94. Comparative valuation analysis is a catch-all model that can be used if you cannot value Zimmer Biomet by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Zimmer Biomet's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Zimmer Biomet's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Zimmer Biomet's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Zimmer Biomet and how it compares across the competition.

About Zimmer Biomet Valuation

The stock valuation mechanism determines the current worth of Zimmer Biomet Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Zimmer Biomet Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Zimmer Biomet Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Zimmer Biomet's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Zimmer Biomet's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Zimmer Biomet. We calculate exposure to Zimmer Biomet's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Zimmer Biomet's related companies.
Last ReportedProjected for 2024
Gross Profit4.7 B3.6 B
Pretax Profit Margin 0.14  0.20 
Operating Profit Margin 0.19  0.22 
Net Profit Margin 0.14  0.15 
Gross Profit Margin 0.63  0.80 

Zimmer Biomet Quarterly Retained Earnings

10.38 Billion

8 Steps to conduct Zimmer Biomet's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Zimmer Biomet's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Zimmer Biomet's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Zimmer Biomet's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Zimmer Biomet's revenue streams: Identify Zimmer Biomet's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Zimmer Biomet's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Zimmer Biomet's growth potential: Evaluate Zimmer Biomet's management, business model, and growth potential.
  • Determine Zimmer Biomet's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Zimmer Biomet's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Zimmer Biomet's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Zimmer Biomet's value is low or high relative to the company's performance and growth projections. Determining the market value of Zimmer Biomet can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Zimmer Biomet represents a small ownership stake in the entity. As a stockholder of Zimmer, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Zimmer Biomet Dividends Analysis For Valuation

The Zimmer Biomet's current Dividend Yield is estimated to increase to 0.02, while Dividends Paid is forecasted to increase to (190.9 M). . The Zimmer Biomet's current Price Earnings Ratio is estimated to increase to 35.64, while Retained Earnings are projected to decrease to under 6.8 B.
Last ReportedProjected for 2024
Dividends Paid-200.9 M-190.9 M
Dividend Yield 0.01  0.02 
Dividend Payout Ratio 0.20  0.19 
Dividend Paid And Capex Coverage Ratio(3.24)(3.08)
There are various types of dividends Zimmer Biomet can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Zimmer shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Zimmer Biomet Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Zimmer pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Zimmer Biomet by the value of the dividends paid out.

Zimmer Biomet Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Zimmer Biomet does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding209.7 M
Quarterly Earnings Growth Y O Y-0.163
Forward Price Earnings15.9236

Zimmer Biomet Current Valuation Indicators

Valuation refers to the process of determining the present value of Zimmer Biomet Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Zimmer we look at many different elements of the entity such as Zimmer's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Zimmer Biomet's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Zimmer Biomet's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Zimmer Biomet, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Zimmer Biomet's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Zimmer Biomet's worth.
When determining whether Zimmer Biomet Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Zimmer Biomet's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Zimmer Biomet Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zimmer Biomet Holdings Stock:
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Zimmer Biomet Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of labor statistics.
Note that the Zimmer Biomet Holdings information on this page should be used as a complementary analysis to other Zimmer Biomet's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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When running Zimmer Biomet's price analysis, check to measure Zimmer Biomet's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Zimmer Biomet is operating at the current time. Most of Zimmer Biomet's value examination focuses on studying past and present price action to predict the probability of Zimmer Biomet's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Zimmer Biomet's price. Additionally, you may evaluate how the addition of Zimmer Biomet to your portfolios can decrease your overall portfolio volatility.
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Is Zimmer Biomet's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zimmer Biomet. If investors know Zimmer will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zimmer Biomet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.16)
Dividend Share
0.96
Earnings Share
4.88
Revenue Per Share
35.43
Quarterly Revenue Growth
0.063
The market value of Zimmer Biomet Holdings is measured differently than its book value, which is the value of Zimmer that is recorded on the company's balance sheet. Investors also form their own opinion of Zimmer Biomet's value that differs from its market value or its book value, called intrinsic value, which is Zimmer Biomet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zimmer Biomet's market value can be influenced by many factors that don't directly affect Zimmer Biomet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Zimmer Biomet's value and its price as these two are different measures arrived at by different means. Investors typically determine if Zimmer Biomet is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zimmer Biomet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.