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, indicating a slight improvement in perceived value but still suggesting overvaluation. The company is considered overvalued based on its high valuation ratios, including a P/E ratio of 80, an EV to EBITDA of 66.13, and a PEG ratio of 3.60. Comparatively, Abbott Laboratories and Thermo Fisher Scientific, Inc. have P/E ratios of 18.36 and 30.06, respectively, highlighting the premium at which Intuitive Surgical is trading.
Despite its strong performance, with a 3-year return of 148.11% compared to the S&P 500's 78.85%, the high valuation metrics suggest that the stock may not be a prudent investment at current levels. The company's returns have outpaced the benchmark in the short term, but the elevated valuation ratios raise concerns about future growth sustainability.