Is Zimmer Biomet Holdings, Inc. overvalued or undervalued?

As of 8 September 2025, Zimmer Biomet Holdings, Inc. has moved from an expensive to a fair valuation grade. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 25, a Price to Book Value of 2.25, and an EV to EBITDA ratio of 13.72. In comparison to its peers, Edwards Lifesciences Corp. has a higher P/E of 31.17, while GE Healthcare Technologies, Inc. offers a more attractive EV to EBITDA of 12.18, indicating that Zimmer is positioned reasonably within its industry.
Despite its fair valuation, Zimmer Biomet has underperformed against the S&P 500 across multiple time frames, with a year-to-date return of -5.13% compared to the S&P 500's 12.22%. This trend continues over longer periods, with a 5-year return of -25.62% against the S&P 500's 96.61%, suggesting that while the stock may be fairly valued, it has struggled to deliver returns relative to the broader market.