Using the industry peer median P/E multiple (trailing + forward), Stryker Corporation (SYK) has a fair value of $225.21 based on 9 comparable companies in the Medical - Devices industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Stryker CorporationSYK | 127,357 | 39.7x | 22.2x |
| Amgen Inc.AMGN | 190,369 | 24.8x | 15.8x |
| Gilead Sciences, Inc.GILD | 170,903 | 20.3x | 15.9x |
| Pfizer Inc.PFE | 156,770 | 20.3x | 9.3x |
| Danaher CorporationDHR | 133,264 | 37.4x | 22.4x |
| Vertex Pharmaceuticals IncorporatedVRTX | 115,820 | 29.8x | 23.6x |
| Medtronic plcMDT | 113,213 | 24.4x | 15.6x |
| HCA Healthcare, Inc.HCA | 108,040 | 17.0x | 16.0x |
| McKesson CorporationMCK | 107,034 | 33.7x | 22.2x |
| Boston Scientific CorporationBSX | 105,082 | 36.5x | 20.4x |
| Industry Median | 24.8x | 16.0x | |
| (*) Profit after tax | 3,246 | 5,738 | |
| Equity Value | 80,556 | 91,597 | |
| (/) Outstanding shares | 382 | 382 | |
| Fair Price | $211 | $240 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.