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 to be overvalued based on its high valuation ratios, including a P/E ratio of 80, a Price to Book Value of 11.67, and an EV to EBITDA of 66.13. In comparison, peers such as Abbott Laboratories and Thermo Fisher Scientific, Inc. have significantly lower P/E ratios of 18.36 and 30.06, respectively, indicating that Intuitive Surgical is trading at a premium relative to its industry.
Despite the overvaluation, Intuitive Surgical has shown strong recent performance, with a 3-year return of 148.11%, which outpaces the S&P 500's return of 78.85% over the same period. However, its year-to-date return of 4.70% lags behind the S&P 500's 15.47%, reinforcing the notion that the stock may be overvalued in the current market context.