Is Intuitive Surgical, Inc. overvalued or undervalued?

As of 22 July 2025, the valuation grade for Intuitive Surgical, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value, yet still suggesting overvaluation. The company appears to be overvalued based on its high P/E ratio of 80, an EV to EBITDA ratio of 66.13, and a PEG ratio of 3.60, which are significantly higher than its peers. For comparison, Abbott Laboratories has a P/E ratio of 18.36, while Thermo Fisher Scientific, Inc. has a PEG ratio of 2.73, both indicating more attractive valuations.
Despite its strong ROCE of 19.51% and ROE of 14.61%, Intuitive Surgical's stock has underperformed relative to the S&P 500, with a year-to-date return of -16.50% compared to the index's 12.22%. This further reinforces the notion that the stock is currently overvalued.