Is Intuitive Surgical, Inc. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Intuitive Surgical, Inc. has moved from very expensive to expensive. The company appears overvalued based on its current valuation metrics. Key ratios include a P/E ratio of 80, an EV to EBITDA of 66.13, and a PEG ratio of 3.60, all of which are significantly higher than its peers, such as Abbott Laboratories with a P/E of 18.36 and Thermo Fisher Scientific with an EV to EBITDA of 21.65.
In comparison to the broader market, Intuitive Surgical has shown strong short-term performance, with a 1-week return of 22.50% compared to the S&P 500's 1.92%, but its year-to-date return of 4.70% lags behind the S&P 500's 15.47%. This suggests that despite recent gains, the company's high valuation ratios indicate it may not be justified given its performance relative to both peers and the market.