Is Stryker Corp. overvalued or undervalued?

As of 30 April 2025, Stryker Corp. has moved from an expensive to a very expensive valuation grade. The company appears to be overvalued based on its current financial ratios. The P/E ratio stands at 34, significantly higher than the industry average, while the EV to EBITDA ratio is 25.94, indicating a premium valuation compared to peers. Additionally, the PEG ratio is 1.86, suggesting that the stock may not be justified by its growth prospects.
In comparison to its peers, Stryker's P/E ratio is markedly higher than Abbott Laboratories, which has a P/E of 19.12, and Thermo Fisher Scientific, which stands at 24.86. This disparity highlights Stryker's elevated valuation in the context of its industry. Furthermore, while Stryker has shown positive returns over the past year, outperforming the S&P 500 slightly, the current valuation metrics suggest that the stock may be priced too high relative to its earnings and growth potential.