Is Stryker Corp. overvalued or undervalued?

As of 17 October 2025, Stryker Corp. has moved from a very expensive to an expensive valuation grade. The company is currently considered overvalued. Key valuation ratios include a P/E ratio of 34, a Price to Book Value of 7.01, and an EV to EBITDA of 25.94. In comparison, Abbott Laboratories has a P/E of 18.36, while Medtronic Plc shows a P/E of 21.47, highlighting Stryker's relatively high valuation within its peer group.
Despite Stryker's recent stock performance, which has outpaced the S&P 500 over the past week (2.69% vs. 1.70%), its year-to-date and one-year returns of 3.99% and 4.08% respectively, lag behind the S&P 500's returns of 13.30% and 14.08%. This suggests that while the stock has shown some short-term strength, its overall performance is not keeping pace with the broader market, reinforcing the notion of overvaluation.