Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Intuitive Surgical, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 16.1% to 10.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 27, DIO 173). At a 8.6% WACC with mid-year discounting, the terminal value (81% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $173.28 per share, suggesting ISRG is overvalued by 61.5% at the current price of $450.06.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 3,026 | 3,435 | 3,904 | 4,460 | 4,928 | 5,100 |
| (−) Net Interest | 234 | 265 | 302 | 345 | 381 | 394 |
| (+) D&A | 720 | 876 | 1,026 | 1,105 | 1,216 | 1,258 |
| EBITDA | 3,980 | 4,576 | 5,232 | 5,909 | 6,524 | 6,753 |
| (−) Tax | 350 | 397 | 452 | 516 | 570 | 590 |
| (−) CapEx | 1,130 | 1,283 | 1,459 | 1,666 | 1,841 | 1,905 |
| (−) ΔWC | 268 | 471 | 540 | 640 | 538 | 557 |
| Free Cash Flow (FCFF) | 2,231 | 2,424 | 2,782 | 3,087 | 3,575 | 3,700 |
| Terminal Value | 73,064 | |||||
| WACC / Discount Rate | 8.6% | |||||
| Long-term Growth Rate | 3.5% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 2,141 | 2,143 | 2,265 | 2,316 | 2,470 | 48,448 |
| Enterprise Value | 59,783 | |||||
| Projection Period | 11,335 | 19.0% | ||||
| Terminal Value | 48,448 | 81.0% | ||||
| (−) Current Net Debt | (3,065) | |||||
| Equity Value | 62,848 | |||||
| (/) Outstanding Shares | 363 | |||||
| Fair Price | $173.28 | |||||
| WACC \ Terminal Growth Rate | 2.5% | 3.0% | 3.5% | 4.0% | 4.5% |
|---|---|---|---|---|---|
| 6.6% | $224 | $250 | $284 | $331 | $401 |
| 7.6% | $180 | $196 | $215 | $239 | $272 |
| 8.6% | $151 | $161 | $173 | $188 | $206 |
| 9.6% | $130 | $137 | $146 | $155 | $167 |
| 10.6% | $115 | $120 | $126 | $132 | $140 |
Current price: $450.06. Green = undervalued, Red = overvalued.
Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Intuitive Surgical, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 16.1% to 5.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 27, DIO 173). At a 8.6% WACC with mid-year discounting, the terminal value (69% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $235.14 per share, suggesting ISRG is overvalued by 47.8% at the current price of $450.06.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit Before Tax | 3,026 | 3,435 | 3,904 | 4,460 | 4,928 | 5,578 | 6,199 | 6,764 | 7,243 | 7,608 | 7,874 |
| (−) Net Interest | 234 | 265 | 302 | 345 | 381 | 431 | 479 | 523 | 560 | 588 | 608 |
| (+) D&A | 720 | 876 | 1,026 | 1,105 | 1,216 | 1,476 | 1,667 | 1,873 | 2,087 | 2,295 | 2,375 |
| EBITDA | 3,980 | 4,576 | 5,232 | 5,909 | 6,524 | 7,484 | 8,345 | 9,160 | 9,889 | 10,490 | 10,857 |
| (−) Tax | 350 | 397 | 452 | 516 | 570 | 645 | 717 | 783 | 838 | 880 | 911 |
| (−) CapEx | 1,130 | 1,283 | 1,459 | 1,666 | 1,841 | 2,084 | 2,316 | 2,527 | 2,706 | 2,842 | 2,942 |
| (−) ΔWC | 268 | 471 | 540 | 640 | 538 | 748 | 715 | 650 | 551 | 420 | 434 |
| Free Cash Flow (FCFF) | 2,231 | 2,424 | 2,782 | 3,087 | 3,575 | 4,008 | 4,596 | 5,200 | 5,795 | 6,348 | 6,570 |
| Terminal Value | 129,738 | ||||||||||
| WACC / Discount Rate | 8.6% | ||||||||||
| Long-term Growth Rate | 3.5% | ||||||||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5.5 | 6.5 | 7.5 | 8.5 | 9.5 | 5 |
| Present Value of FCF | 2,141 | 2,143 | 2,265 | 2,316 | 2,470 | 2,550 | 2,694 | 2,808 | 2,882 | 2,908 | 57,043 |
| Enterprise Value | 82,221 | ||||||||||
| Projection Period | 25,178 | 30.6% | |||||||||
| Terminal Value | 57,043 | 69.4% | |||||||||
| (−) Current Net Debt | (3,065) | ||||||||||
| Equity Value | 85,286 | ||||||||||
| (/) Outstanding Shares | 363 | ||||||||||
| Fair Price | $235.14 | ||||||||||
| WACC \ Terminal Growth Rate | 2.5% | 3.0% | 3.5% | 4.0% | 4.5% |
|---|---|---|---|---|---|
| 6.6% | $321 | $354 | $398 | $459 | $550 |
| 7.6% | $254 | $273 | $296 | $327 | $367 |
| 8.6% | $209 | $221 | $235 | $252 | $274 |
| 9.6% | $177 | $185 | $194 | $205 | $218 |
| 10.6% | $154 | $159 | $165 | $173 | $181 |
Current price: $450.06. Green = undervalued, Red = overvalued.
Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Intuitive Surgical, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 16.1% to 10.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 27, DIO 173). At a 8.6% WACC with mid-year discounting, the terminal value (86% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.4x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $239.75 per share, suggesting ISRG is overvalued by 46.7% at the current price of $450.06.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 3,026 | 3,435 | 3,904 | 4,460 | 4,928 | 5,051 |
| (−) Net Interest | 234 | 265 | 302 | 345 | 381 | 390 |
| (+) D&A | 720 | 876 | 1,026 | 1,105 | 1,216 | 1,246 |
| EBITDA | 3,980 | 4,576 | 5,232 | 5,909 | 6,524 | 6,687 |
| (−) Tax | 350 | 397 | 452 | 516 | 570 | — |
| (−) CapEx | 1,130 | 1,283 | 1,459 | 1,666 | 1,841 | — |
| (−) ΔWC | 268 | 471 | 540 | 640 | 538 | — |
| Free Cash Flow (FCF) | 2,231 | 2,424 | 2,782 | 3,087 | 3,575 | — |
| Peers' EBITDA Multiple | 16.4x | |||||
| Terminal Value | 109,404 | |||||
| WACC / Discount Rate | 8.56% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 2,141 | 2,143 | 2,265 | 2,316 | 2,470 | 72,544 |
| Enterprise Value | 83,879 | |||||
| Projection Period | 11,335 | 13.5% | ||||
| Terminal Value | 72,544 | 86.5% | ||||
| (−) Current Net Debt | (3,065) | |||||
| Equity Value | 86,944 | |||||
| (÷) Outstanding Shares | 363M | |||||
| Fair Price | $240 | -46.7% | ||||
| WACC \ EV/EBITDA Exit Multiple | 12.4x | 14.4x | 16.4x | 18.4x | 20.4x |
|---|---|---|---|---|---|
| 6.6% | $207 | $234 | $261 | $288 | $314 |
| 7.6% | $199 | $224 | $250 | $276 | $301 |
| 8.6% | $191 | $215 | $240 | $264 | $289 |
| 9.6% | $183 | $207 | $230 | $253 | $277 |
| 10.6% | $176 | $199 | $221 | $243 | $266 |
Current price: $450.06. Green = undervalued, Red = overvalued.
Based on default parameters
Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Intuitive Surgical, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 16.1% to 5.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 27, DIO 173). At a 8.6% WACC with mid-year discounting, the terminal value (75% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 16.4x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $291.15 per share, suggesting ISRG is overvalued by 35.3% at the current price of $450.06.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | Terminal | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Profit Before Tax | 3,026 | 3,435 | 3,904 | 4,460 | 4,928 | 5,578 | 6,199 | 6,764 | 7,243 | 7,608 | 7,798 |
| (−) Net Interest | 234 | 265 | 302 | 345 | 381 | 431 | 479 | 523 | 560 | 588 | 602 |
| (+) D&A | 720 | 876 | 1,026 | 1,105 | 1,216 | 1,476 | 1,667 | 1,873 | 2,087 | 2,295 | 2,352 |
| EBITDA | 3,980 | 4,576 | 5,232 | 5,909 | 6,524 | 7,484 | 8,345 | 9,160 | 9,889 | 10,490 | 10,752 |
| (−) Tax | 350 | 397 | 452 | 516 | 570 | 645 | 717 | 783 | 838 | 880 | — |
| (−) CapEx | 1,130 | 1,283 | 1,459 | 1,666 | 1,841 | 2,084 | 2,316 | 2,527 | 2,706 | 2,842 | — |
| (−) ΔWC | 268 | 471 | 540 | 640 | 538 | 748 | 715 | 650 | 551 | 420 | — |
| Free Cash Flow (FCF) | 2,231 | 2,424 | 2,782 | 3,087 | 3,575 | 4,008 | 4,596 | 5,200 | 5,795 | 6,348 | — |
| Peers' EBITDA Multiple | 16.4x | ||||||||||
| Terminal Value | 175,908 | ||||||||||
| WACC / Discount Rate | 8.56% | ||||||||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5.5 | 6.5 | 7.5 | 8.5 | 9.5 | 5 |
| Present Value of FCF | 2,141 | 2,143 | 2,265 | 2,316 | 2,470 | 2,550 | 2,694 | 2,808 | 2,882 | 2,908 | 77,343 |
| Enterprise Value | 102,521 | ||||||||||
| Projection Period | 25,178 | 24.6% | |||||||||
| Terminal Value | 77,343 | 75.4% | |||||||||
| (−) Current Net Debt | (3,065) | ||||||||||
| Equity Value | 105,586 | ||||||||||
| (÷) Outstanding Shares | 363M | ||||||||||
| Fair Price | $291 | -35.3% | |||||||||
| WACC \ EV/EBITDA Exit Multiple | 12.4x | 14.4x | 16.4x | 18.4x | 20.4x |
|---|---|---|---|---|---|
| 6.6% | $279 | $311 | $342 | $373 | $405 |
| 7.6% | $258 | $287 | $315 | $344 | $373 |
| 8.6% | $239 | $265 | $291 | $317 | $343 |
| 9.6% | $222 | $245 | $269 | $293 | $317 |
| 10.6% | $206 | $228 | $249 | $271 | $293 |
Current price: $450.06. Green = undervalued, Red = overvalued.
Based on default parameters
Using the industry peer median P/E Multiples multiple (trailing + forward), Intuitive Surgical, Inc. (ISRG) has a fair value of $206.93 based on 7 comparable companies in the Medical - Instruments & Supplies industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Intuitive Surgical, Inc.ISRG | 163,237 | 57.2x | 43.3x |
| Becton, Dickinson and Company | 54,138 | 25.6x | 11.9x |
| ResMed Inc. | 30,011 | 21.8x | 18.7x |
| West Pharmaceutical Services, Inc. | 22,749 | 47.4x | 37.6x |
| Hologic, Inc. | 16,969 | 30.5x | 17.9x |
| The Cooper Companies, Inc. | 11,707 | 32.1x | 14.6x |
| Repligen Corporation | 7,131 | 147.0x | 63.2x |
| Merit Medical Systems, Inc. | 3,655 | 28.8x | 15.1x |
| Industry Median | 30.5x | 17.9x | |
| (*) Profit after tax | 2,856 | 3,766 | |
| Equity Value | 87,183 | 62,925 | |
| (/) Outstanding shares | 363 | 363 | |
| Fair Price | $240 | $173 | |
Using the industry peer median EV/EBITDA multiple (trailing + forward), Intuitive Surgical, Inc. (ISRG) has a fair value of $188.56 based on 10 comparable companies in the Medical - Instruments & Supplies industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| Intuitive Surgical, Inc.ISRG | 163,237 | 44.2x | 38.1x |
| Becton, Dickinson and Company | 54,138 | 14.6x | 16.6x |
| ResMed Inc. | 30,011 | 15.5x | 14.1x |
| West Pharmaceutical Services, Inc. | 22,749 | 30.9x | 28.6x |
| Hologic, Inc. | 16,969 | 17.2x | 17.3x |
| The Cooper Companies, Inc. | 11,707 | 13.7x | 13.7x |
| Baxter International Inc. | 9,291 | 22.6x | 24.1x |
| Repligen Corporation | 7,131 | 44.2x | 39.6x |
| Teleflex Incorporated | 5,829 | 27.0x | 23.5x |
| Merit Medical Systems, Inc. | 3,655 | 12.9x | 12.0x |
| ICU Medical, Inc. | 3,160 | 13.0x | 13.3x |
| Industry Median | 16.4x | 17.0x | |
| (*) EBITDA | 3,623 | 4,207 | |
| = Enterprise Value | 59,276 | 71,377 | |
| (-) Net Debt | -3,065 | -3,065 | |
| Equity Value | 62,341 | 74,442 | |
| (/) Outstanding shares | 363 | 363 | |
| Fair Price | $172 | $205 | |
Using the industry peer median EV/Revenue multiple (trailing + forward), Intuitive Surgical, Inc. (ISRG) has a fair value of $120.42 based on 10 comparable companies in the Medical - Instruments & Supplies industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Intuitive Surgical, Inc.ISRG | 163,237 | 15.9x | 13.7x |
| Becton, Dickinson and Company | 54,138 | 3.3x | 3.8x |
| ResMed Inc. | 30,011 | 5.8x | 5.2x |
| West Pharmaceutical Services, Inc. | 22,749 | 7.3x | 6.7x |
| Hologic, Inc. | 16,969 | 4.3x | 4.3x |
| The Cooper Companies, Inc. | 11,707 | 3.5x | 3.5x |
| Baxter International Inc. | 9,291 | 1.5x | 1.6x |
| Repligen Corporation | 7,131 | 9.8x | 8.8x |
| Teleflex Incorporated | 5,829 | 4.1x | 3.6x |
| Merit Medical Systems, Inc. | 3,655 | 2.7x | 2.5x |
| ICU Medical, Inc. | 3,160 | 1.9x | 2.0x |
| Industry Median | 3.8x | 3.7x | |
| (*) Revenue | 10,065 | 11,688 | |
| = Enterprise Value | 38,293 | 42,927 | |
| (-) Net Debt | -3,065 | -3,065 | |
| Equity Value | 41,358 | 45,993 | |
| (/) Outstanding shares | 363 | 363 | |
| Fair Price | $114 | $127 | |
Using the PEG framework with analyst consensus forward EPS growth of 16.4%, the company has a fair value of $170.52 based on NTM EPS (FY2026) of $10.38. The current PEG ratio is 2.64.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 16.4% |
| Adjusted Growth (clamped 8–25%) | 16.4% |
| Fair P/E | 16.4x |
| NTM EPS (FY2026) | $10.38 |
| Fair Value | $170.52 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $7.87 | — | — |
| FY2026E | $10.38 | +31.9% | 24 |
| FY2027E | $11.78 | +13.4% | 25 |
| FY2028E | $13.31 | +13.0% | 24 |
| FY2029E | $15.46 | +16.1% | 23 |
| FY2030E | $16.83 | +8.9% | 15 |
5Y Forward EPS CAGR: 16.4%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $1.7B | $4.66 | — |
| FY2022 | $1.3B | $3.65 | -21.7% |
| FY2023 | $1.8B | $5.03 | +37.8% |
| FY2024 | $2.3B | $6.42 | +27.6% |
| FY2025 | $2.9B | $7.87 | +22.6% |
4Y Historical EPS CAGR: 14.0%
Using the Earnings Power Value framework with a WACC of 8.6% and normalized earnings of $2.2B, the company has a fair value of $79.65 per share. The EPV range is $69.04 – $94.77 based on WACC sensitivity (7.1% – 10.1%).
| Low | Selected | High | |
|---|---|---|---|
| Normalized Earnings | 2,212 | 2,212 | 2,212 |
| (/) WACC | 10.1% | 8.6% | 7.1% |
| Enterprise Value | 21,976 | 25,825 | 31,309 |
| (-) Net debt | -3,065 | -3,065 | -3,065 |
| Equity Value | 25,041 | 28,890 | 34,374 |
| (/) Outstanding shares | 363 | 363 | 363 |
| Fair Price | $69.04 | $79.65 | $94.77 |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.