We publish no single base value for Zimmer Biomet. Our valuation methods put it between $93.87 and $168.46 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
| Method | Value | vs price | Basis |
|---|---|---|---|
| Discounted cash flow | $168.46 | +61.1% | free cash flow $1.66bn, growth 3.1% for 5 years, then fading to 3% over 5 more, discounted at 8.32%; stress floor $111.84 |
| Exit multiple (P/E) | $93.87 | -10.2% | earnings per share $8.55 valued at 14.1× (the stock's own median P/E) in 5 years, discounted back |
| Sum of the parts | — | — | no sum of the parts: this run holds no segment disclosure for the name |
| Price to sales | — | — | not reached: the cash-flow or earnings methods produced an anchor, so this fallback was not run |
| Tangible book | — | — | used only for lenders, where book value is the business |
| Price to FFO (REITs) | — | — | used only for REITs |
Each working is rebuilt by code from the valuation's own figures and checked against the published value.
The discount rate:
| Risk-free rate | 5.13% (10-year US Treasury yield) |
| Company's own beta | 0.50 (5 years of monthly returns against the S&P 500; standard error 0.20) |
| Peer beta | 0.78 (median of 15 S&P 500 Health Care Equipment companies) |
| Blend of own and peers | 0.57 (75% own, 25% peers, weighted by how precisely the company's own beta is measured) |
| Adjusted beta | 0.71 (0.67 × 0.57 + 0.33, pulled toward the market's 1.0) |
| Equity risk premium | 4.5% |
| Discount rate = risk-free + adjusted beta × premium | 8.32% |
Free cash flow grows 3.10% a year for 5 years, then fades in equal steps toward 3% over 5 more; each year is discounted by 1 ÷ (1 + rate)^year:
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Now | — | $1.66bn | — | — |
| Year 1 | 3.10% | $1.71bn | 0.9231 | $1.58bn |
| Year 2 | 3.10% | $1.76bn | 0.8522 | $1.50bn |
| Year 3 | 3.10% | $1.82bn | 0.7867 | $1.43bn |
| Year 4 | 3.10% | $1.87bn | 0.7262 | $1.36bn |
| Year 5 | 3.10% | $1.93bn | 0.6704 | $1.29bn |
| Year 6 | 3.08% | $1.99bn | 0.6189 | $1.23bn |
| Year 7 | 3.07% | $2.05bn | 0.5713 | $1.17bn |
| Year 8 | 3.05% | $2.11bn | 0.5274 | $1.11bn |
| Year 9 | 3.03% | $2.18bn | 0.4869 | $1.06bn |
| Year 10 | 3.02% | $2.24bn | 0.4495 | $1.01bn |
| Terminal value = year-10 cash flow × (1 + 3%) ÷ (8.32% − 3%) | $43.38bn |
| Terminal value in today's money | $19.50bn |
| Present value of years 1–10 | $12.74bn |
| Total present value | $32.24bn |
| Shares outstanding | 191.40m |
| Value per share = total ÷ shares | $168.46 |
How the DCF value moves with the discount rate and the starting growth (the middle cell is the published value):
| Discount rate | Growth -1.9% | Growth 3.1% | Growth 8.1% |
|---|---|---|---|
| 7.32% | $150.64 | $207.45 | — |
| 8.32% | $123.55 | $168.46 | — |
| 9.32% | $104.98 | $141.80 | — |
The same DCF at each beta, starting growth unchanged:
| Beta | Value | Discount rate | DCF value |
|---|---|---|---|
| Company's own beta | 0.50 | 7.38% | $204.84 |
| Peer beta | 0.78 | 8.64% | $159.04 |
| Adjusted beta (used) | 0.71 | 8.32% | $168.46 |
Earnings per share grow on the same fading path as the DCF:
| Year | Growth | Earnings per share |
|---|---|---|
| Now | — | $8.55 |
| Year 1 | 3.10% | $8.81 |
| Year 2 | 3.06% | $9.08 |
| Year 3 | 3.04% | $9.36 |
| Year 4 | 3.03% | $9.64 |
| Year 5 | 3.02% | $9.93 |
| Earnings per share in year 5 | $9.93 |
| Exit P/E (the stock's own median P/E) | 14.1× |
| Value in 5 years = earnings × P/E | $140.02 |
| Discounted at 8.32% over 5 years: ÷ 1.4916 | $93.87 |
We publish no single base value for Zimmer Biomet. Our valuation methods put it between $93.87 and $168.46 a share. The valuation code's reason: no point fair value: the two anchors behind it compound the same growth rate and differ only in how they end — a perpetuity at the terminal rate against a multiple on the final year — so the midpoint between them measures terminal treatment rather than what the business is worth. The published range is the same reading with the false precision removed: read it as the span the method supports, and treat neither edge as a point estimate.
One-year price simulation: a 10% chance the price is below $64.34 and a 10% chance it is above $172.31 in a year; a 51% chance it is higher than today's $104.56, from 38.24% volatility. The simulation assumes the price drifts up at our discount rate of 8.32% a year.
At $104.56 the price implies free cash flow growing -4.6% a year for five years and then fading toward 3% over five more; its revenue has grown 3.1%.
| Week | Price | Base value |
|---|---|---|
| 2 Oct 2026 | $88.29 | — |
| 9 Oct 2026 | $89.14 | — |
| 16 Oct 2026 | $94.98 | — |
| 23 Oct 2026 | $98.56 | — |
| 30 Oct 2026 | $94.52 | — |
| 6 Nov 2026 | $105.59 | — |
| 12 Nov 2026 | $104.56 | — |
Data as of 12 Nov 2026; financials to 30 Sep 2026. Sources: company filings via EODHD, SEC EDGAR, US Treasury. How these values are computed. Not investment advice.
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