Intuitive Surgical Inc. (NASDAQ:ISRG)

Price to Earnings (P/E) Ratio

The Price to Earnings ratio demonstrates notable fluctuations over the observed periods. Starting at a high level of approximately 90 in early 2021, it decreased steadily through 2021 and into mid-2022, reaching the mid-50s range. Following this decline, the ratio showed an upward trend, peaking near 88 by late 2024. Subsequently, a modest decline occurred, with values hovering around the high 60s to low 70s in 2025. Overall, the P/E ratio exhibits cyclicality with a preference toward higher valuation multiples in recent quarters, indicating investor willingness to pay a premium relative to earnings in later periods.

Price to Operating Profit (P/OP) Ratio

The Price to Operating Profit ratio mimics the general trend of the P/E ratio, starting from about 89 in early 2021 and declining to just below 45 by mid-2022. After this trough, the ratio increased sharply, reaching nearly 90 towards the end of 2024 before falling again to the mid-60s by 2025. This pattern suggests variations in operating profitability relative to the stock price, with investors' valuation reflecting changing perceptions of core operating earnings over time.

Price to Sales (P/S) Ratio

The Price to Sales ratio reveals a declining trend from above 23 in early 2021 to below 13 toward the third quarter of 2022. Subsequently, the ratio increased consistently, surpassing 24 by late 2024, before dipping slightly to just under 20 in 2025. This indicates an initial contraction in how much investors were willing to pay for each dollar of sales, followed by growing confidence or improving revenue quality as evidenced by the rising multiples later on.

Price to Book Value (P/BV) Ratio

The Price to Book Value ratio started around 10.4 in early 2021 and declined to a low of approximately 6.3 in mid-2022. After this decrease, the ratio demonstrated a strong upward movement, peaking at about 12.4 towards the end of 2024. Subsequently, a mild retracement occurred in early 2025, with values stabilizing around 10. Although the P/BV ratio experienced volatility, the later increase suggests enhanced market valuation of the company’s net assets or investor optimism about future book value growth.

Overall Insights

Across all four valuation metrics, a consistent pattern emerges whereby ratios declined through 2021 into mid-2022, followed by a robust recovery and upward trend through late 2024. This indicates a period of conservative investor sentiment or potentially weaker financial performance initially, succeeded by renewed confidence in profitability, sales growth, and net asset value. The slight moderation of ratios in early 2025 may reflect market adjustments or normalization after periods of elevated valuations. The cyclicality and revival of multiples suggest a dynamic valuation environment influenced by shifting profitability and growth expectations.

Share Price

The share price experienced notable fluctuations over the observed periods. Initially, it rose from approximately $297 in early 2021 to a peak near $340 by the third quarter of 2021, followed by a decline to around $211 by the middle of 2022. After this dip, the share price demonstrated a strong recovery trend, reaching $378 by the end of 2023 and continuing an upward trajectory to a high surpassing $570 in the last quarter of 2024. Towards the first three quarters of 2025, the price showed some correction, settling between $488 and $527.

Earnings Per Share (EPS)

EPS displayed a mostly positive and steady growth pattern during the entire timeline. Starting at $3.30 in the first quarter of 2021, EPS climbed steadily with minor fluctuations, reaching roughly $3.77 by the end of 2021. Despite a small dip in early 2022, EPS resumed its increase, breaking the $5 mark by late 2023 and culminating at $7.75 in the third quarter of 2025. This consistent EPS growth indicates improving profitability per share over the periods examined.

Price-to-Earnings (P/E) Ratio

The P/E ratio showed a downward trend from near 90 in early 2021 to a low in the low 50s during mid-2022, reflecting either reduced share price or increasing earnings. Subsequently, the ratio fluctuated, reaching highs above 80 in late 2024, suggesting periods where share price growth outpaced earnings gains. In the early 2025 quarters, the P/E ratio declined again to the high 60s, indicating a more balanced valuation relative to earnings at that stage.

Overall Observations

There is a clear pattern of steady earnings growth alongside volatile share price movements. The EPS’s consistent upward trajectory underpins the company’s improving financial performance. The fluctuations in share price and P/E ratio suggest periods of market optimism and revaluation, with the share price peaks often preceding or following changes in earnings momentum. The elevated P/E ratios in certain periods may also reflect heightened investor expectations or market conditions rather than fundamental earnings changes alone.

Share Price Trends

The share price exhibited notable fluctuations over the observed periods. Initially, it showed an upward trajectory from approximately $297.13 to a peak near $339.80 within 2021, followed by a decline toward the end of 2021 and into mid-2022, reaching a low around $211.85. Subsequently, the share price recovered and experienced substantial growth, especially from early 2023 to late 2024, climbing to a high of approximately $571.88 by December 2024. However, this peak was followed by a moderate decrease in early 2025 before stabilizing around the $500-$530 range.

Operating Profit per Share (OPPS)

Operating profit per share maintained a generally upward trend throughout the periods. Starting at $3.33 in early 2021, it increased steadily with minor fluctuations, reaching levels above $5 by late 2021 and continuing to rise through 2024. The metric peaked at approximately $7.94 by the third quarter of 2025, indicating ongoing improvements in operating profitability on a per-share basis.

Price-to-Operating Profit Ratio (P/OP)

The price-to-operating profit ratio showed significant volatility. Initially, this ratio declined sharply from about 89.18 in early 2021 to a trough near 44.54 in mid-2022, reflecting a period when the share price was relatively low compared to operating profit per share. Thereafter, the ratio exhibited cyclical behavior, rising again to values above 80 in late 2023 and 2024, but then declining to around 66.34 by the third quarter of 2025. These fluctuations suggest varying investor sentiment and valuation assessments relative to operational profitability over time.

Summary Insights

Overall, the financial data indicates a company with strengthening operating profitability per share, coupled with a share price that experienced phases of both contraction and robust growth. The divergence between the share price and operating profit per share at certain periods is reflected in the oscillations of the price-to-operating profit ratio, hinting at changing market valuation dynamics. The upward trend in operating profit per share is consistent and suggests improving operational efficiency or margin expansion, while the share price movements suggest external market factors influencing investor confidence and valuation multiples.

Share Price Trends

The share price demonstrated notable fluctuations over the analyzed periods. Initially, it increased from approximately $297 to a peak near $340 within 2021, followed by a decline towards the end of that year and into mid-2022 reaching lows around $211. Subsequently, the share price showed recovery and strength, rising substantially from late 2022 through 2024, eventually surpassing previous highs and nearing values above $570 by late 2024. In 2025, the share price experienced some volatility but generally maintained elevated levels near $500 to $527.

Sales Per Share Development

Sales per share exhibited consistent growth throughout the entire timeframe. Starting at $12.81 in early 2021, sales per share increased almost steadily across each quarter. By the end of 2025, sales per share reached $27.11, more than doubling the early 2021 figures. This indicates robust operational growth and increased revenue generation on a per-share basis without noted declines or interruptions.

Price-to-Sales (P/S) Ratio Patterns

The P/S ratio followed a more variable course compared to share price and sales per share. Initially, it decreased from approximately 23.19 down to about 12.62 mid-2022, indicating share price valuation contraction relative to sales growth. Afterwards, the ratio increased again sharply, oscillating between roughly 13.7 and 24.4 from late 2022 through 2024, signaling fluctuations in market valuation relative to sales. In 2025, the P/S ratio declined moderately, settling near 19.4 by the latest quarter, which suggests moderately high valuation levels relative to sales but somewhat reduced compared to its 2024 peak.

Summary of Insight

The data indicates a company experiencing strong and steady sales growth over the period analyzed. Share price volatility was observed especially through 2021 and 2022 but was followed by significant price appreciation aligned with sales growth. The P/S ratio's fluctuations reveal changing market sentiments or valuation adjustments relative to the steady underlying sales increase. Overall, the upward trajectory in both sales per share and share price towards the end of the period suggests increased investor confidence and improving operational performance, though market valuation multiples have shown sensitivity to external or internal factors during the timeframe.

The analysis of the quarterly financial metrics over the indicated periods reveals distinct patterns and fluctuations in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio.

Share Price (USD)

The share price exhibited volatility across the periods. Initially, it increased from approximately $297 to around $340 in the first three quarters, then declined to a low near $212 in mid-2022. Thereafter, it resumed an upward trend, reaching a peak exceeding $570 by the end of 2024 before experiencing a moderate decline in early 2025 with values around $488 to $527.

Book Value Per Share (US$)

The book value per share demonstrated a consistent upward trajectory throughout the quarters. Starting from $28.58, it progressed steadily to nearly $48 by mid-2025, indicating continuous growth in the company's net asset value on a per-share basis. There were no significant declines, reflecting stable balance sheet improvement over time.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio showed considerable variation shaped by movements in both the share price and BVPS. It began with high multiples around 10.4x but declined significantly to about 6.3x during 2022, coinciding with the share price trough. Subsequently, the ratio rebounded sharply to exceed 12x in late 2024, reflecting a period when the share price growth outpaced the increase in BVPS. In early 2025, it moderated slightly to a range between 10.1x and 11.0x.

In summary, the data indicates that the company’s book value per share has steadily increased, evidencing asset growth or retained earnings accumulation. The share price has been more volatile, experiencing a notable dip in mid-2022 but achieving substantial appreciation later, particularly throughout 2023 and 2024. The P/BV ratio’s fluctuations suggest varying market sentiment and valuation multiples, with periods of relative undervaluation and overvaluation compared to the underlying book value. The overall trend reflects growing shareholder value measured by both book value and market price, albeit with phases of heightened market adjustment.