Is Zimmer Biomet Holdings, Inc. overvalued or undervalued?

As of 24 April 2025, the valuation grade for Zimmer Biomet Holdings, Inc. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 25, which is in line with the industry average, while the EV to EBITDA ratio is 13.72. Additionally, the Price to Book Value is 2.25, indicating a reasonable valuation relative to its assets.
In comparison to peers, Zimmer Biomet's P/E ratio of 25 is lower than Intuitive Surgical, Inc.'s very expensive P/E of 73.45 and higher than Medtronic Plc's attractive P/E of 20.86. The EV to EBITDA ratio of 13.72 is also competitive when compared to Edwards Lifesciences Corp. at 24.90. Despite recent underperformance against the S&P 500, with a year-to-date return of -13.38% compared to the index's 2.44%, the current valuation suggests that Zimmer Biomet is positioned fairly within its industry.