Intuitive Surgical, Inc. (ISRG) receives a weak valuation score of 6 from InvestorsObserver analysis. Our proprietary scoring system considers the overall health of the company by looking at the stock's price, earnings, and growth rate to determine if it represents a good value. ISRG holds a better value than 6% of stocks at its current price. Investors who are focused on long-term growth through buy-and-hold investing will find the Valuation Rank especially relevant when allocating their assets.
ISRG gets a 6 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ISRG!
ISRG has a trailing twelve month Price to Earnings (PE) ratio of 78.4 which places it above the histroical average of roughly 15. ISRG is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. ISRG's trailing-12-month earnings per share (EPS) of 4.64 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
ISRG has a 12 month forward PE to Growth (PEG) ratio of 8.12. Markets are overvaluing ISRG in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 4.63999986's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.
ISRG's valuation metrics are weak at its current price due to a overvalued PEG ratio due to strong growth. ISRG's PE and PEG are worse than the market average resulting in a below average valuation score.
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