Zimmer Biomet Holdings, Inc. (ZBH) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+263.6%

$351.42

vs $96.65 price

Levered DCF

$321.70

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.46

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	25.26×	23.74×	24.79×	115.91×	65.77×	-229.81×	27.1×	-55.72×
P/B	1.4×	1.72×	2.04×	2.22×	2.09×	2.61×	2.48×	1.87×
P/S	2.16×	2.79×	3.43×	3.85×	3.88×	5.2×	3.84×	2.66×
EV / EBITDA	11.15×	12.05×	13.85×	21.44×	20.16×	38.99×	17.9×	27.85×
Gross margin	61.6%	71.5%	71.8%	70.9%	71.3%	70.2%	71.8%	71.4%
Operating margin	16.5%	16.7%	17.3%	10.0%	12.6%	1.4%	14.3%	0.4%
Net margin	8.6%	11.8%	13.8%	3.3%	5.9%	-2.3%	14.2%	-4.8%
Current ratio	1.98×	1.91×	1.61×	1.88×	1.41×	1.99×	1.37×	1.83×
Debt / equity	0.59×	0.5×	0.46×	0.47×	0.56×	0.67×	0.66×	0.79×
Interest coverage	4.65×	5.9×	6.35×	4.23×	4.13×	0.39×	5.01×	0.12×
Dividend yield	1.1%	0.9%	0.8%	0.8%	0.8%	0.6%	0.6%	0.9%
Payout ratio	27.0%	21.7%	19.6%	86.9%	49.8%	-142.9%	17.4%	-51.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	5.6%	7.2%	8.2%	1.9%	3.2%	-1.1%	9.1%	-3.4%
Return on invested capital	5.5%	5.7%	6.3%	2.6%	3.6%	0.0%	5.0%	0.2%
Return on assets	3.1%	4.2%	4.8%	1.1%	1.7%	-0.6%	4.6%	-1.6%
Free cash flow yield	8.3%	5.3%	4.7%	4.0%	5.1%	3.4%	3.9%	7.5%
Earnings yield	4.0%	4.2%	4.0%	0.9%	1.5%	-0.4%	3.7%	-1.8%
Enterprise value	$24.7B	$27.1B	$30.8B	$32B	$33.2B	$39.2B	$38.3B	$29.5B
Net debt / EBITDA	3.12×	2.52×	2.41×	3.56×	4.07×	7.29×	3.56×	7.93×
Cash conversion cycle (days)	305	410	417	397	410	511	384	363