Using the industry peer median EV/EBITDA multiple (trailing + forward), Stryker Corporation (SYK) has a fair value of $267.28 based on 9 comparable companies in the Medical - Devices industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| Stryker CorporationSYK | 127,357 | 21.9x | 20.1x |
| Amgen Inc.AMGN | 190,369 | 14.9x | 14.5x |
| Gilead Sciences, Inc.GILD | 170,903 | 17.4x | 16.9x |
| Pfizer Inc.PFE | 156,770 | 14.8x | 15.1x |
| Danaher CorporationDHR | 133,264 | 21.2x | 20.3x |
| Vertex Pharmaceuticals IncorporatedVRTX | 115,820 | 23.1x | 21.4x |
| Medtronic plcMDT | 113,213 | 15.1x | 14.0x |
| HCA Healthcare, Inc.HCA | 108,040 | 10.1x | 9.7x |
| McKesson CorporationMCK | 107,034 | 20.7x | 18.2x |
| Boston Scientific CorporationBSX | 105,082 | 30.9x | 27.9x |
| Industry Median | 17.4x | 16.9x | |
| (*) EBITDA | 6,314 | 6,874 | |
| = Enterprise Value | 109,667 | 116,336 | |
| (-) Net Debt | 10,848 | 10,848 | |
| Equity Value | 98,819 | 105,488 | |
| (/) Outstanding shares | 382 | 382 | |
| Fair Price | $259 | $276 | |
This EV/EBITDA relative valuation uses the industry peer median Enterprise Value to EBITDA ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) EV/EBITDA multiples are computed independently.
The industry median EV/EBITDA is applied to the company's EBITDA to produce an enterprise value. Net debt (total debt minus cash) is subtracted to arrive at equity value, which is divided by shares outstanding for fair price per share. The selected fair value is the average of the trailing and forward legs.