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, peers such as Edwards Lifesciences Corp. have a higher P/E ratio of 31.17, while GE Healthcare Technologies, Inc. shows a more attractive EV to EBITDA of 12.18.
Despite the fair valuation, Zimmer Biomet has underperformed compared to the S&P 500, with a year-to-date return of -4.80% versus the S&P 500's 16.30%. This trend continues over longer periods, indicating potential challenges ahead.