Is Stryker Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Stryker Corp. has moved from very expensive to expensive, indicating a slight improvement but still suggesting that the stock is overvalued. The company is currently assessed as overvalued based on its P/E ratio of 34, which is significantly higher than the industry average, and an EV to EBITDA ratio of 25.94, also above typical industry levels. Additionally, the PEG ratio stands at 1.86, suggesting that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, Abbott Laboratories has a P/E of 18.36, while Medtronic Plc shows a P/E of 21.47, both indicating that Stryker is trading at a premium relative to these companies. Notably, Stryker's recent stock performance has lagged behind the S&P 500, with a year-to-date return of 3.99% compared to the S&P 500's 13.30%, and a three-year return of 73.64% versus 81.19% for the index. This underperformance reinforces the notion that Stryker Corp. is overvalued in the current market environment.