Is Intuitive Surgical, Inc. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Intuitive Surgical, Inc. has moved from expensive to fair. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 80, a Price to Book Value of 11.67, and an EV to EBITDA of 66.13. In comparison to peers, Abbott Laboratories has a P/E of 18.36, while Thermo Fisher Scientific, Inc. has a P/E of 30.06, indicating that Intuitive Surgical is trading at a premium relative to these companies.
Despite the recent shift in valuation, Intuitive Surgical has underperformed compared to the S&P 500, with a year-to-date return of -17.70% versus the S&P 500's 11.41%. This underperformance, along with the high valuation ratios, suggests that while the stock is currently fairly valued, it may face challenges in justifying its premium in the near term.