Zimmer Biomet HOLDINGS, Inc. (ZBH) intrinsic value & 10-year financials

Zimmer Biomet HOLDINGS, Inc. (ZBH) has a Graham intrinsic value of $75.04 per share. At $94.98 on Oct 17, 2026, the stock trades 27% above that value. Over the last 10 fiscal years revenue grew 0.8% a year to $8.2B, with an average return on invested capital of 3.7%.

Graham intrinsic value
$75.04
Share price (Oct 17, 2026)
$94.98
Price vs Graham value
27% above
Market cap
$18.9B
Revenue (FY2025)
$8.2B
Revenue growth (10-yr CAGR)
0.8%
ROIC (10-yr avg)
3.7%
Free cash flow (FY2025)
$1.5B

ZBH 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $8.2B $705.1M $3.55 $1.5B 13.3% 4.9%
FY2024 $7.7B $903.8M $4.43 $1.3B 16.7% 6.2%
FY2023 $7.4B $1.0B $4.88 $1.3B 17.3% 6.9%
FY2022 $6.9B $231.4M $1.10 $1.2B 10.0% 2.5%
FY2021 $7.8B $401.6M $1.91 $1.3B 10.0% 3.8%
FY2020 $7.0B -$138.9M -$0.67 $1.1B -1.2% -0.2%
FY2019 $8.0B $1.1B $5.47 $1.4B 14.3% 5.7%
FY2018 $7.9B -$379.2M -$1.86 $1.6B 0.4% 0.2%
FY2017 $7.8B $1.8B $8.90 $1.4B 10.4% 3.9%
FY2016 $7.7B $305.9M $1.51 $1.4B 10.8% 3.1%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Zimmer Biomet has demonstrated mature, steady growth, with revenue compounding at 0.8% annually over the past decade.

Zimmer Biomet has historically struggled to out-earn its cost of capital, averaging just 3.7% ROIC.

Zimmer Biomet has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Zimmer Biomet is modeled at 8.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $75.04 per share.

ZBH stock: frequently asked questions

What is the intrinsic value of Zimmer Biomet HOLDINGS, Inc. (ZBH) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 8.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, ZBH's intrinsic value is about $75.04 per share.

Is ZBH stock undervalued?

At $94.98 (close on Oct 17, 2026), ZBH trades 27% above its Graham value of $75.04. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Zimmer Biomet HOLDINGS, Inc. grown?

Revenue went from $7.7B in fiscal 2016 to $8.2B in fiscal 2025, a compound annual growth rate of 0.8%. Net income was $705.1M in fiscal 2025.

Does Zimmer Biomet HOLDINGS, Inc. generate free cash flow?

Zimmer Biomet HOLDINGS, Inc. generated $1.5B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is ZBH's return on invested capital?

Average ROIC over the last 10 fiscal years was 3.7%, and average return on equity was 5.2%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this ZBH data come from?

From Zimmer Biomet HOLDINGS, Inc.'s annual 10-K filings on SEC EDGAR. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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