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. Based on the current metrics, the company appears to be fairly valued. 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, Agilent Technologies, Inc. has a P/E of 27.42, while GE Healthcare Technologies, Inc. stands out with a much lower P/E of 15.07, indicating that Zimmer Biomet is positioned competitively within its industry.
Despite the fair valuation, Zimmer Biomet has underperformed relative to the S&P 500, with a year-to-date return of -2.32% compared to the index's 16.30%. Over the past five years, the company has seen a decline of 22.03%, while the S&P 500 has gained 109.18%, further emphasizing the challenges the company faces in generating shareholder value.