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Intuitive Surgical Inc

Exchange: NASDAQSector: HealthcareIndustry: Medical Instruments & Supplies

Intuitive, headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic surgery. Our technologies include the da Vinci surgical system and the Ion endoluminal system. By uniting advanced systems, progressive learning, and value-enhancing services, we help physicians and their teams optimize care delivery to support the best outcomes possible. At Intuitive, we envision a future of care that is less invasive and profoundly better, where disease is identified early and treated quickly, so that patients can get back to what matters most. About da Vinci Surgical Systems There are several models of the da Vinci Surgical System. The da Vinci surgical systems are designed to help surgeons perform minimally invasive surgery and offer surgeons high-definition 3D vision, a magnified view, and robotic and computer assistance. They use specialized instrumentation, including a miniaturized surgical camera and wristed instruments (i.e., scissors, scalpels, and forceps) that are designed to help with precise dissection and reconstruction deep inside the body. About the Ion Endoluminal System The Ion Endoluminal System (Model IF1000) assists the user in navigating a catheter and endoscopic tools in the pulmonary tract using endoscopic visualization of the tracheobronchial tree for diagnostic and therapeutic procedures. The Ion Endoluminal System enables fiducial marker placement. It does not make a diagnosis and is not for pediatric use. Information provided by the Ion Endoluminal System or its components should be considered guidance only and not replace clinical decisions made by a trained physician.

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A large-cap company with a $159.7B market cap.

Current Price

$450.62

-0.95%

GoodMoat Value

$225.00

50.1% overvalued
Profile
Valuation (TTM)
Market Cap$159.74B
P/E55.93
EV$163.53B
P/B8.96
Shares Out354.50M
P/Sales15.87
Revenue$10.06B
EV/EBITDA38.76

Intuitive Surgical Inc (ISRG) Valuation

GoodMoat Analysis

Based on data as of March 26, 2026

Intuitive Surgical is a high-quality business but appears significantly overvalued from a value investing perspective. The current price of $469.98 is more than double the GoodMoat Target of $225, indicating a negative margin of safety. Its P/E of 58.3 is exceptionally high relative to its sector and its own growth rate.

Read full analysis
Based on the GoodMoat Investment Framework, Intuitive Surgical's valuation presents a significant hurdle for a value investor. The primary valuation tool, the Discounted Cash Flow (DCF) model, indicates a severe overvaluation. The GoodMoat Target of $225.00 suggests the stock's intrinsic value is less than half its current price of $469.98. This results in a negative margin of safety, which falls into the 'Unfavourable' band according to the framework's classification, where a margin of safety of at least 20% is required for a favourable assessment. The stock's forward P/E ratio of 58.3 is extremely high. While the company exhibits strong revenue growth of 18.8% YoY, a P/E of 58.3 implies a Price-to-Earnings-to-Growth (PEG) ratio well above 1.0, which is unfavourable for a growth stock. This multiple is also far above typical sector averages for medical instruments, demanding near-perfect execution of future growth. Although the company demonstrates high-quality fundamentals like a 28.4% profit margin and a 16.0% ROE, the valuation does not provide the necessary margin of safety. For a value investor, the price fails the Valuation & Risk Gate, placing it in an 'Unfavourable' position despite the underlying business strength. Analysis based on data as of 2024-05-15.

ISRG Fair Value Estimate

$225.0050.1% overvalued

Blended fair value estimate based on DCF, Graham Number, and earnings-based models.

ISRG Valuation Metrics

FCF$2.49B
FCF Growth Rate13.38%
EPS Growth (CAGR)13.38%
WACC10.00%

ISRG Valuation & Fair Value Analysis

Intuitive Surgical Inc (ISRG) valuation analysis using multiple fair value methodologies. GoodMoat calculates a blended fair value target using discounted cash flow (DCF) analysis, the Graham Number, and earnings-based valuation models.

The GoodMoat Fair Value target for Intuitive Surgical Inc is $225.00. The current stock price is $450.62, suggesting the stock is 100.3% overvalued.

The price-to-earnings (P/E) ratio is 55.93. Price-to-book ratio is 8.96. Price-to-sales ratio is 15.87. Enterprise value to EBITDA is 38.76. PEG ratio is 3.60.

GoodMoat's valuation models include the Graham Number (based on EPS and book value), an earnings-based model (discounted future EPS), and a PEG-adjusted valuation. The three models are averaged to produce a blended fair value estimate. Use these tools alongside the DCF calculator and reverse DCF to form a comprehensive view of Intuitive Surgical Inc's intrinsic value.