Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Intuitive Surgical Inc., current price multiples
| Intuitive Surgical Inc. | Abbott Laboratories | CVS Health Corp. | Elevance Health Inc. | Medtronic PLC | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $540.60 | ||||||||||
| No. shares of common stock outstanding | 358,418,255 | ||||||||||
| Growth rate (g) | 13.02% | ||||||||||
| Earnings per share (EPS) | $6.48 | ||||||||||
| Next year expected EPS | $7.32 | ||||||||||
| Operating profit per share | $6.55 | ||||||||||
| Sales per share | $23.30 | ||||||||||
| Book value per share (BVPS) | $45.85 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 83.42 | 17.41 | 18.26 | 13.23 | 24.26 | 19.37 | 22.13 | 33.83 | |||
| Price to next year expected earnings | 73.81 | 15.84 | 17.48 | 11.81 | 23.89 | 16.84 | 20.28 | 31.23 | |||
| Price-earnings-growth (PEG) | 6.41 | 1.75 | 4.09 | 1.09 | 15.50 | 1.29 | 2.42 | 4.06 | |||
| Price to operating profit (P/OP) | 82.49 | 34.19 | 9.89 | 10.87 | 18.99 | 8.64 | 15.75 | 23.63 | |||
| Price to sales (P/S) | 23.20 | 5.56 | 0.23 | 0.45 | 3.37 | 0.71 | 0.96 | 2.37 | |||
| Price to book value (P/BV) | 11.79 | 4.90 | 1.12 | 1.92 | 2.36 | 3.01 | 3.03 | 4.99 | |||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Intuitive Surgical Inc., historical price multiples
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Price to earnings (P/E) ratio
- The P/E ratio experienced a significant decline from 87.47 in 2020 to 59.94 in 2021, indicating a reduction in market valuation relative to earnings. Subsequently, it increased moderately to 64.99 in 2022, followed by a sharper rise to 74.11 in 2023, and further climbing to 87.82 by 2024, returning to a valuation level similar to that of 2020. This pattern suggests fluctuations in investor sentiment and earnings expectations, with periods of both contraction and expansion in market confidence over the observed timeframe.
- Price to operating profit (P/OP) ratio
- The P/OP ratio showed a pronounced decrease from 88.37 in 2020 to 56.11 in 2021, reflecting a more attractive valuation relative to operating profits. This ratio further declined slightly to 54.49 in 2022, marking its lowest point during the period. However, it rose substantially in the subsequent years to 75.42 in 2023 and nearly rebounded to the initial level at 86.83 in 2024. This recovery may indicate an initial undervaluation followed by revaluation in relation to operating profitability.
- Price to sales (P/S) ratio
- The P/S ratio demonstrates a downward trend from 21.29 in 2020 to 13.81 in 2022, suggesting a decrease in market valuation relative to sales over these years. After this low in 2022, the ratio reversed direction and increased sharply to 18.71 in 2023 and further to 24.42 in 2024, exceeding the initial 2020 level. This pattern might reflect fluctuating investor expectations about future sales growth or changing sales performance dynamics.
- Price to book value (P/BV) ratio
- The P/BV ratio decreased steadily from 9.53 in 2020 to 7.78 in 2022, implying a diminished market valuation compared to the book value of assets. However, the ratio then rebounded to 10.01 in 2023 and increased further to 12.41 in 2024. The rising trend in the later years suggests an increasing market premium on the company’s net assets, potentially driven by improved asset quality, profitability, or investor confidence.
Price to Earnings (P/E)
Intuitive Surgical Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 356,656,964 | 352,325,863 | 350,389,679 | 357,744,031 | 353,154,894 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to Intuitive Surgical, Inc. (in thousands) | 2,322,600) | 1,798,000) | 1,322,300) | 1,704,600) | 1,060,600) | |
| Earnings per share (EPS)2 | 6.51 | 5.10 | 3.77 | 4.76 | 3.00 | |
| Share price1, 3 | 571.88 | 378.22 | 245.27 | 285.60 | 262.70 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 87.82 | 74.11 | 64.99 | 59.94 | 87.47 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 17.46 | 34.57 | 26.76 | 29.13 | 48.49 | |
| CVS Health Corp. | 17.28 | 11.47 | 27.53 | 17.39 | 12.88 | |
| Elevance Health Inc. | 14.85 | 19.80 | 19.20 | 18.13 | 15.87 | |
| Medtronic PLC | 27.97 | 30.94 | 23.38 | 46.56 | 26.30 | |
| UnitedHealth Group Inc. | 29.75 | 20.53 | 22.46 | 26.03 | 20.54 | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 25.63 | 23.36 | 24.57 | 26.88 | 24.48 | |
| P/E Ratio, Industry | ||||||
| Health Care | 37.14 | 29.43 | 21.38 | 21.35 | 30.75 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income attributable to Intuitive Surgical, Inc. ÷ No. shares of common stock outstanding
= 2,322,600,000 ÷ 356,656,964 = 6.51
3 Closing price as at the filing date of Intuitive Surgical Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 571.88 ÷ 6.51 = 87.82
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited an overall upward trajectory from 2020 to 2024. Starting at $262.7 in 2020, it increased modestly to $285.6 in 2021, then declined to $245.27 in 2022. Subsequently, there was a significant rise to $378.22 in 2023, followed by a sharper increase reaching $571.88 by the end of 2024. This suggests a strong recovery and robust market confidence in the later years.
- Earnings Per Share (EPS)
- The EPS demonstrated growth with some fluctuations. It increased from $3 in 2020 to $4.76 in 2021, indicating improved profitability. A dip occurred in 2022, with EPS declining to $3.77. However, the figure rebounded to $5.1 in 2023 and further grew to $6.51 in 2024. The pattern indicates a temporary setback in 2022, followed by consistent earnings improvement.
- Price to Earnings (P/E) Ratio
- The P/E ratio experienced variability across the period. It started very high at 87.47 in 2020, decreased to 59.94 in 2021, then slightly rose to 64.99 in 2022. A further increase occurred in 2023 to 74.11, and it peaked again at 87.82 in 2024. The elevated P/E ratios throughout the period suggest that the market has maintained high expectations for future growth or profitability, even amidst fluctuations in share price and EPS.
Price to Operating Profit (P/OP)
Intuitive Surgical Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 356,656,964 | 352,325,863 | 350,389,679 | 357,744,031 | 353,154,894 | |
| Selected Financial Data (US$) | ||||||
| Income from operations (in thousands) | 2,348,900) | 1,766,800) | 1,577,100) | 1,821,000) | 1,049,800) | |
| Operating profit per share2 | 6.59 | 5.01 | 4.50 | 5.09 | 2.97 | |
| Share price1, 3 | 571.88 | 378.22 | 245.27 | 285.60 | 262.70 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 86.83 | 75.42 | 54.49 | 56.11 | 88.37 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 34.28 | 30.54 | 22.18 | 24.45 | 40.69 | |
| CVS Health Corp. | 9.36 | 6.96 | 14.75 | 10.43 | 6.65 | |
| Elevance Health Inc. | 12.19 | 15.57 | 15.05 | 15.70 | 12.10 | |
| Medtronic PLC | 19.98 | 21.20 | 20.48 | 37.44 | 26.29 | |
| UnitedHealth Group Inc. | 13.27 | 14.20 | 15.89 | 18.77 | 14.12 | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 18.23 | 16.62 | 17.98 | 19.92 | 17.16 | |
| P/OP Ratio, Industry | ||||||
| Health Care | 25.94 | 25.66 | 16.51 | 17.67 | 22.32 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Income from operations ÷ No. shares of common stock outstanding
= 2,348,900,000 ÷ 356,656,964 = 6.59
3 Closing price as at the filing date of Intuitive Surgical Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 571.88 ÷ 6.59 = 86.83
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a fluctuating yet overall upward trajectory over the five-year period. It increased from $262.70 at the end of 2020 to $285.60 in 2021, followed by a decline to $245.27 in 2022. Subsequently, a substantial rise occurred, reaching $378.22 in 2023 and further accelerating to $571.88 by the end of 2024. This pattern indicates increased market valuation with notable volatility, particularly the significant growth in the last two years.
- Operating Profit Per Share
- The operating profit per share followed a generally positive trend. It grew from $2.97 in 2020 to $5.09 in 2021, then slightly decreased to $4.50 in 2022. However, it rebounded to $5.01 in 2023 and continued to increase to $6.59 in 2024. This progression reflects improving operational efficiency and profitability on a per-share basis, aside from the minor dip during 2022.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio experienced significant changes across the years. It started very high at 88.37 in 2020, dropped substantially to 56.11 in 2021 and slightly decreased further to 54.49 in 2022. Afterwards, the ratio rose to 75.42 in 2023 and continued climbing to 86.83 in 2024. The initial sharp decline suggests a market correction towards more reasonable valuation relative to operating profit, while the subsequent increase indicates growing investor confidence or higher market expectations despite improvements in operating profit.
Price to Sales (P/S)
Intuitive Surgical Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 356,656,964 | 352,325,863 | 350,389,679 | 357,744,031 | 353,154,894 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | 8,352,100) | 7,124,100) | 6,222,200) | 5,710,100) | 4,358,400) | |
| Sales per share2 | 23.42 | 20.22 | 17.76 | 15.96 | 12.34 | |
| Share price1, 3 | 571.88 | 378.22 | 245.27 | 285.60 | 262.70 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 24.42 | 18.71 | 13.81 | 17.89 | 21.29 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 5.58 | 4.93 | 4.25 | 4.78 | 6.30 | |
| CVS Health Corp. | 0.22 | 0.27 | 0.36 | 0.47 | 0.35 | |
| Elevance Health Inc. | 0.51 | 0.70 | 0.74 | 0.81 | 0.60 | |
| Medtronic PLC | 3.18 | 3.72 | 3.72 | 5.57 | 4.36 | |
| UnitedHealth Group Inc. | 1.08 | 1.25 | 1.40 | 1.58 | 1.24 | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.11 | 1.15 | 1.22 | 1.48 | 1.29 | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.61 | 2.72 | 2.48 | 2.65 | 2.59 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 8,352,100,000 ÷ 356,656,964 = 23.42
3 Closing price as at the filing date of Intuitive Surgical Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 571.88 ÷ 23.42 = 24.42
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a generally upward trend over the analyzed period. Starting at US$262.7 at the end of 2020, the price increased moderately to US$285.6 in 2021. It then experienced a decline to US$245.27 in 2022 before rising substantially to US$378.22 in 2023. The most significant growth occurred in 2024, with the share price reaching US$571.88, indicating strong investor confidence or favorable market conditions in that year.
- Sales per Share
- Sales per share consistently increased throughout the period. From US$12.34 in 2020, this metric grew steadily each year, reaching US$23.42 by the end of 2024. This pattern suggests effective revenue growth and possibly improved operational performance or market expansion, enhancing sales relative to the number of shares outstanding.
- Price to Sales Ratio (P/S)
- The price-to-sales ratio showed notable fluctuations during the period. Initially, it declined from 21.29 in 2020 to 13.81 in 2022, indicating that the share price was becoming less expensive relative to sales. However, from 2022 onward, the ratio increased sharply to 24.42 in 2024, surpassing previous levels. This reversal suggests that the stock’s market valuation outpaced sales growth in the latter years, potentially reflecting elevated investor expectations or speculative factors.
Price to Book Value (P/BV)
Intuitive Surgical Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 356,656,964 | 352,325,863 | 350,389,679 | 357,744,031 | 353,154,894 | |
| Selected Financial Data (US$) | ||||||
| Total Intuitive Surgical, Inc. stockholders’ equity (in thousands) | 16,433,700) | 13,307,600) | 11,041,900) | 11,901,100) | 9,731,500) | |
| Book value per share (BVPS)2 | 46.08 | 37.77 | 31.51 | 33.27 | 27.56 | |
| Share price1, 3 | 571.88 | 378.22 | 245.27 | 285.60 | 262.70 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 12.41 | 10.01 | 7.78 | 8.59 | 9.53 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 4.91 | 5.12 | 5.06 | 5.75 | 6.65 | |
| CVS Health Corp. | 1.05 | 1.25 | 1.61 | 1.83 | 1.33 | |
| Elevance Health Inc. | 2.15 | 3.02 | 3.19 | 3.07 | 2.19 | |
| Medtronic PLC | 2.05 | 2.26 | 2.24 | 3.26 | 2.48 | |
| UnitedHealth Group Inc. | 4.63 | 5.18 | 5.81 | 6.27 | 4.83 | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.51 | 3.64 | 3.75 | 4.16 | 3.51 | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.48 | 5.44 | 4.90 | 5.07 | 4.90 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Total Intuitive Surgical, Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 16,433,700,000 ÷ 356,656,964 = 46.08
3 Closing price as at the filing date of Intuitive Surgical Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 571.88 ÷ 46.08 = 12.41
5 Click competitor name to see calculations.
- Share Price
- The share price demonstrated a fluctuating yet overall upward trend across the five-year period. Starting at $262.7 in 2020, it increased modestly to $285.6 in 2021 before experiencing a decline to $245.27 in 2022. Subsequent years showed a strong recovery and substantial growth, reaching $378.22 in 2023 and significantly rising to $571.88 by the end of 2024. This pattern suggests a temporary setback in 2022 followed by renewed investor confidence and positive market performance.
- Book Value Per Share (BVPS)
- BVPS exhibited steady growth over the same period. The value rose from $27.56 in 2020 to $33.27 in 2021, then slightly decreased to $31.51 in 2022. From 2022 onwards, BVPS increased consistently, reaching $37.77 in 2023 and $46.08 in 2024. This upward movement indicates continuous improvement in the company's net asset value on a per-share basis, reinforcing the company's fundamental financial strength despite the minor dip in 2022.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio showed a general downward trend in the early years, declining from 9.53 in 2020 to 7.78 in 2022, coinciding with the dips observed in share price and BVPS. However, post-2022, the ratio increased markedly to 10.01 in 2023 and further to 12.41 in 2024. This rise indicates that the market valuation of the company relative to its book value increased significantly, possibly reflecting heightened investor expectations or perceived growth potential starting from 2023.