Is Stryker Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Stryker Corp. moved from very expensive to expensive, indicating a shift towards a less favorable valuation. The company is currently considered overvalued based on its high valuation ratios, including a P/E ratio of 34, a Price to Book Value of 7.01, and an EV to EBITDA of 25.94.
In comparison to its peers, Stryker's P/E ratio is significantly higher than Abbott Laboratories at 18.36 and Medtronic Plc at 21.47, both of which are considered fairly valued. Additionally, Stryker's PEG ratio of 1.86 suggests that its growth is not adequately reflected in its price compared to peers like Thermo Fisher Scientific, which has a PEG of 2.73. Over the past year, Stryker's stock returned 4.08%, underperforming the S&P 500's return of 14.08%, reinforcing the notion that the stock may be overvalued.