Is Stryker Corp. overvalued or undervalued?

As of 15 August 2025, Stryker Corp. has moved from an expensive to a very expensive valuation grade. The company is overvalued, as indicated by its P/E ratio of 34, which is significantly higher than its peers such as Abbott Laboratories at 18.36 and Medtronic Plc at 21.47. Additionally, Stryker's EV to EBITDA ratio stands at 25.94, while its PEG ratio is 1.86, suggesting that the stock is priced high relative to its growth potential.
In comparison to its peers, Stryker Corp. exhibits a higher valuation profile, with its P/E ratio exceeding that of both Abbott Laboratories and Medtronic Plc, which are considered fairly valued. Despite a strong return of 4.94% year-to-date, it lags behind the S&P 500's return of 12.22% over the same period, reinforcing the notion that the stock may not be a compelling investment at its current price.