InvestorsObserver gives Intuitive Surgical, Inc. (ISRG) a weak valuation score of 11 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. ISRG currently holds a better value than 11% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.
ISRG gets a 11 Valuation Rank today. Find out what this means to you and get the rest of the rankings on ISRG!
ISRG's trailing-12-month Price to Earnings (PE) ratio of 43.3 puts it above the historical average of roughly 15. ISRG is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. ISRG's trailing-12-month earnings per share (EPS) of 4.49 does not justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low.
ISRG currently has a 12-month-forward-PE-to-Growth (PEG) ratio of 4.38. The market is currently overvaluing ISRG in relation to its projected growth due to the PEG ratio being above the fair market value of 1. ISRG's PEG comes from its forward price to earnings ratio being divided by its growth rate. Because PEG ratios include more fundamentals of a company's overall health with additional focus on the future, they are one of the most used valuation metrics by analysts.
