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 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 of 13.72. In comparison to peers, Edwards Lifesciences Corp. has a higher P/E of 31.17, while GE Healthcare Technologies, Inc. shows a more attractive valuation with an EV to EBITDA of 12.18.
Despite the fair valuation, Zimmer Biomet has underperformed relative to the S&P 500, with a year-to-date return of -5.44% compared to the S&P 500's 16.30%. This underperformance over multiple periods, including a 5-year return of -24.52% versus the S&P 500's 109.18%, suggests that while the stock is fairly valued, it may face challenges in regaining investor confidence.