Latest Ratios: P/E Ratio 25.2x · EV/EBITDA 9.9x · ROE 5.6%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.5B | $17.9B | $21.5B | $25.5B | $26.8B | $25.9B | $30.9B | $30.0B | $20.5B | $23.8B | $20.3B |
| Enterprise Value | $24.4B | $24.8B | $27.2B | $30.9B | $32.1B | $32.6B | $38.3B | $37.6B | $28.9B | $33.5B | $30.9B |
| P/E Ratio → | 25.19 | 25.33 | 23.84 | 24.94 | 115.91 | 64.52 | — | 26.55 | — | 12.96 | 66.75 |
| P/S Ratio | 2.13 | 2.17 | 2.80 | 3.45 | 3.86 | 3.80 | 5.05 | 3.76 | 2.58 | 3.06 | 2.64 |
| P/B Ratio | 1.40 | 1.41 | 1.73 | 2.04 | 2.23 | 2.05 | 2.54 | 2.42 | 1.82 | 2.03 | 2.10 |
| P/FCF | 11.89 | 12.13 | 18.85 | 21.50 | 25.13 | 19.25 | 28.32 | 25.41 | 12.92 | 16.72 | 14.00 |
| P/OCF | 10.32 | 10.53 | 14.36 | 16.14 | 20.87 | 17.30 | 25.69 | 18.93 | 11.72 | 15.07 | 12.42 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.01 | 3.54 | 4.18 | 4.63 | 4.78 | 6.25 | 4.71 | 3.64 | 4.29 | 4.03 |
| EV / EBITDA | 9.95 | 10.10 | 11.93 | 13.85 | 19.80 | 18.14 | 38.99 | 17.55 | 26.88 | 17.97 | 16.59 |
| EV / EBIT | 17.94 | 22.07 | 21.69 | 24.34 | 56.54 | 46.11 | 357.99 | 33.21 | 1586.38 | 42.36 | 40.91 |
| EV / FCF | — | 16.84 | 23.82 | 26.01 | 30.11 | 24.21 | 35.03 | 31.85 | 18.22 | 23.46 | 21.33 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.6% | 61.6% | 71.5% | 71.8% | 70.9% | 71.3% | 70.2% | 71.8% | 71.4% | 72.7% | 68.9% |
| Operating Margin | 16.5% | 16.5% | 16.7% | 17.3% | 10.0% | 12.6% | 1.4% | 14.3% | 0.4% | 10.2% | 10.7% |
| Net Profit Margin | 8.6% | 8.6% | 11.8% | 13.8% | 3.3% | 5.9% | -2.3% | 14.2% | -4.8% | 23.2% | 4.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.6% | 5.6% | 7.2% | 8.4% | 1.9% | 3.2% | -1.1% | 9.6% | -3.3% | 16.9% | 3.1% |
| ROA | 3.2% | 3.2% | 4.2% | 4.8% | 1.0% | 1.7% | -0.6% | 4.6% | -1.5% | 6.9% | 1.1% |
| ROIC | 5.4% | 5.4% | 5.4% | 5.4% | 2.8% | 3.3% | 0.3% | 4.3% | 0.1% | 2.9% | 3.1% |
| ROCE | 6.9% | 6.9% | 6.8% | 6.8% | 3.6% | 4.1% | 0.4% | 5.3% | 0.2% | 3.4% | 3.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.59 | 0.59 | 0.50 | 0.46 | 0.47 | 0.56 | 0.67 | 0.66 | 0.79 | 0.86 | 1.16 |
| Debt / EBITDA | 3.06 | 3.06 | 2.72 | 2.59 | 3.51 | 3.93 | 8.28 | 3.84 | 8.32 | 5.45 | 6.04 |
| Net Debt / Equity | — | 0.55 | 0.46 | 0.43 | 0.44 | 0.53 | 0.60 | 0.61 | 0.74 | 0.82 | 1.10 |
| Net Debt / EBITDA | 2.82 | 2.82 | 2.49 | 2.40 | 3.28 | 3.72 | 7.46 | 3.55 | 7.82 | 5.17 | 5.70 |
| Debt / FCF | — | 4.70 | 4.97 | 4.51 | 4.99 | 4.97 | 6.70 | 6.44 | 5.30 | 6.74 | 7.33 |
| Interest Coverage | 3.84 | 3.84 | 5.76 | 6.30 | 3.45 | 3.39 | 0.50 | 4.99 | 0.06 | 2.43 | 2.13 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.98 | 1.98 | 1.91 | 1.61 | 1.88 | 1.41 | 1.99 | 1.37 | 1.83 | 1.49 | 1.96 |
| Quick Ratio | 1.10 | 1.10 | 0.99 | 0.78 | 0.97 | 0.79 | 1.03 | 0.68 | 0.90 | 0.81 | 1.14 |
| Cash Ratio | 0.23 | 0.23 | 0.21 | 0.15 | 0.16 | 0.11 | 0.31 | 0.18 | 0.22 | 0.17 | 0.27 |
| Asset Turnover | — | 0.36 | 0.36 | 0.34 | 0.33 | 0.29 | 0.25 | 0.32 | 0.33 | 0.30 | 0.29 |
| Inventory Turnover | 1.38 | 1.38 | 0.98 | 0.87 | 0.94 | 0.91 | 0.74 | 0.94 | 1.01 | 1.02 | 1.21 |
| Days Sales Outstanding | — | 75.58 | 70.38 | 71.20 | 72.66 | 67.34 | 86.53 | 62.37 | 58.70 | 72.23 | 76.37 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 1.1% | 0.9% | 0.8% | 0.8% | 0.8% | 0.6% | 0.7% | 1.0% | 0.8% | 0.9% |
| Payout Ratio | 27.0% | 27.0% | 21.7% | 19.6% | 86.9% | 49.8% | — | 17.4% | — | 10.7% | 61.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.0% | 3.9% | 4.2% | 4.0% | 0.9% | 1.5% | — | 3.8% | — | 7.7% | 1.5% |
| FCF Yield | 8.4% | 8.2% | 5.3% | 4.7% | 4.0% | 5.2% | 3.5% | 3.9% | 7.7% | 6.0% | 7.1% |
| Buyback Yield | 2.8% | 2.7% | 4.0% | 2.7% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 2.1% |
| Total Shareholder Yield | 3.9% | 3.8% | 4.9% | 3.5% | 1.2% | 0.8% | 0.6% | 0.7% | 1.0% | 0.8% | 3.0% |
| Shares Outstanding | — | $199M | $204M | $210M | $210M | $210M | $207M | $207M | $204M | $204M | $202M |
Elective procedure volume sensitivity
According to current market data, ZBH trades at a forward P/E of 10.97, which appears significantly discounted compared to the broader orthopedic peer group, suggesting that investors remain cautious regarding the company's ability to sustain long-term margin expansion amidst persistent pricing pressures in the medical device sector.
The valuation gap between ZBH and peers like Stryker suggests the market is pricing in a lower growth trajectory for ZBH's core joint replacement business. While the forward multiple is attractive, it warrants investigation into whether this reflects a structural lack of confidence in the company's robotics-led pivot or merely a temporary valuation disconnect.
Based on reported financial statements, ZBH's ROIC has remained in a narrow range, hovering around 1.4% in 2026Q1, which indicates that the company is struggling to generate meaningful returns on its invested capital base when accounting for the significant goodwill accumulated through past strategic acquisitions.
The low ROIC relative to the cost of capital suggests that the company's historical M&A strategy has yet to yield the expected synergistic returns. Investors should monitor whether the current focus on high-growth enabling technologies can improve these returns or if the asset-heavy nature of the business will continue to suppress capital efficiency.
As reported in recent filings, ZBH's asset turnover ratio of 0.09 in 2026Q1 highlights the inherent capital intensity of the orthopedic model, where the necessity of maintaining extensive consignment inventory at hospital sites creates a persistent drag on the company's ability to cycle assets efficiently.
This low turnover is a structural feature of the industry rather than a sign of poor management, yet it complicates the assessment of operational performance. Analysts should focus on the trend in DIO, which remains elevated, to determine if the company is successfully optimizing its field inventory levels as it shifts toward more specialized surgical kits.
Based on the provided figures, ZBH's interest coverage ratio of 5.47 in 2026Q1, combined with a stable debt-to-equity ratio of 0.51, suggests that the company maintains a healthy balance sheet capable of supporting its ongoing capital allocation and strategic investment requirements without immediate refinancing risk.
The company's ability to maintain these leverage metrics while simultaneously funding share repurchases and acquisitions indicates a disciplined approach to capital structure. However, investors should remain vigilant regarding the impact of potential interest rate volatility on the cost of servicing this debt in future periods.
The inventory turnover ratio is frequently misapplied to ZBH, as it fails to account for the unique consignment model where surgical sets must be pre-positioned at hospitals, thereby artificially inflating DIO and obscuring the true velocity of the company's high-margin implant sales within the orthopedic market.
Using standard inventory turnover metrics without adjusting for the consignment nature of the business leads to an inaccurate assessment of operational efficiency. A more appropriate metric would be to analyze the revenue-to-consignment-inventory ratio, which would better reflect the company's ability to generate sales from its deployed field assets.
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying ZBH stock.
Zimmer Biomet Holdings, Inc.'s current P/E ratio is 25.2x. The historical average is 31.4x. This places it at the 55th percentile of its historical range.
Zimmer Biomet Holdings, Inc.'s current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.4x.
Zimmer Biomet Holdings, Inc.'s return on equity (ROE) is 5.6%. The historical average is 19.4%.
Based on historical data, Zimmer Biomet Holdings, Inc. is trading at a P/E of 25.2x. This is at the 55th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Zimmer Biomet Holdings, Inc.'s current dividend yield is 1.07% with a payout ratio of 27.0%.
Zimmer Biomet Holdings, Inc. has 61.6% gross margin and 16.5% operating margin. Operating margin between 10-20% is typical for established companies.
Zimmer Biomet Holdings, Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.