Is Zimmer Biomet Holdings, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Zimmer Biomet Holdings, Inc. moved from expensive to fair. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 25, an EV to EBITDA of 13.72, and a Price to Book Value of 2.25.
In comparison to peers, Edwards Lifesciences Corp. has a higher P/E ratio of 31.17, while Agilent Technologies, Inc. stands at a P/E of 27.42, indicating that Zimmer Biomet is relatively more attractively priced within its industry. Notably, the company's stock has underperformed against the S&P 500 over multiple periods, with a year-to-date return of -4.80% compared to the S&P 500's 16.30%, reinforcing the notion that it is fairly valued but may face challenges in generating positive returns in the near term.