NYSE · ZBH

Zimmer Biomet Holdings, Inc.

Healthcare · Medical - Devices

$92.44▼ 2.29% ($2.16)at close

As of 4:00 PM ET

52-week

$79.12$106.88

Market cap

$17.88B

P/E

22.09

Volume

1.36M

Shares outstanding

193.46M

What the market price implies · Reverse DCF

To support a price of $92.44, this model requires Stage 1 FCFF to grow by -16.17%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 10.62%/yr over the past 10 years. The required annual growth rate is 26.78 percentage points lower.

Selected forecast · Base scenario

10.62%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

-16.17%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$92.44

Estimated value / share

$433.26

Base scenario

This estimate is 368.69% above the price used.

USD · TTM ending 2026-06-30

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Market beta (0.47) is below the minimum default of 0.5 — short lookback windows can understate systematic risk. Beta floored at 0.5 for default assumptions; adjust manually if needed.

This estimate is at least 3× the price used. Review the assumptions behind the gap.

Stage 1 10.62% · Stage 2 5.84% · Discount rate 6.39%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 11, 2026, 6:37 AM UTC · provider

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 28 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 54.3%.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: -9.64%Revenue (TTM): 8.62%FCF (TTM): 28.52%P/FCF: 5th pct

What changed

The stock fell 9.64% over the last year. Revenue grew 8.62% over the trailing twelve months. Operating margin moved from 16.09% to 15.73%. Free cash flow grew 28.52% over the trailing twelve months.

What the market seems to be pricing

The stock has moved lower against modestly improving underlying metrics. The operating data does not yet tell a clear story — the move may reflect sentiment, sector rotation, or macro factors rather than company-specific earnings power.

What would invalidate this read

Operating margin currently stands at 15.73%. A decisive move in revenue — currently up 8.62% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

Zimmer Biomet Holdings, Inc. engages in the design, manufacture, and marketing of orthopedic reconstructive products.

CEOIvan Tornos

SectorHealthcare

IndustryMedical - Devices

Employees17,000

IPO dateJul 25, 2001

https://www.zimmerbiomet.com

Market multiples

Forward P/E—

EV/EBITDA11.15

Enterprise value$24.73B

Stock splits

Mar 1, 2022↑ Forward

Every 100 shares became 103

+3%

Profitability & growth

Revenue growth4.8%

Gross margin69.87%▼9.8ppvs FY2024

Operating margin15.73%▼0.2ppvs FY2024

ROE6.42%▲0.8ppvs FY2025

Analyst consensus

RatingHold

Target price$103.11▲11.54%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $1.89 · Revenue est $2.04B

View

Dividends

$0.96/shareQuarterlyDividend Achiever · 13yrEx-div Sep 30, 2026 · in 19dSafe

ZBH pays a dividend with a 1.04% declared yield, 13 consecutive years of growth, growing at 0.59% annually, covered 7.7× by free cash flow.

Declared Yield

1.04%

Annual Div / Share

$0.96

5yr CAGR

+0.59%

Doubles every ~117.3yr

Payout Ratio

23.35%

Safe

Dividend Growth Rate

3yr CAGR

+0%

5yr CAGR

+0.59%

10yr CAGR

+0.51%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.96+0.0%

2025$0.96+0.0%

2024$0.96+0.0%

2023$0.96+0.7%

2022$0.95+2.2%

2021$0.93+0.0%

2020$0.93+0.0%

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$10/yr

$1/mo

In 5 yrs

$11/yr+3%

$1/mo

In 10 yrs

$11/yr+6%

$1/mo

Today	In 5 yrs	In 10 yrs
$10/yr $1/mo	$11/yr+3% $1/mo	$11/yr+6% $1/mo

Yield-on-cost grows from 1.04% → 1.1% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

ZBH has raised its dividend for 13 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 7.7× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Risks to Watch

No strong risk signal stands out from the latest period pair.

NYSE · ZBH

Zimmer Biomet Holdings, Inc.

Healthcare · Medical - Devices

$92.44▼ 2.29% ($2.16)at close

As of 4:00 PM ET

52-week

$79.12$106.88

Market cap

$17.88B

P/E

22.09

Volume

1.36M

Shares outstanding

193.46M

What the market price implies · Reverse DCF

To support a price of $92.44, this model requires Stage 1 FCFF to grow by -16.17%/yr over the next 5 years, compounded annually.

Historical FCFF grew by 10.62%/yr over the past 10 years. The required annual growth rate is 26.78 percentage points lower.

Selected forecast · Base scenario

10.62%/yr · Stage 1 default · years 1–5

Annual overrides take precedence over the Stage 1 default.

Market-implied · Other assumptions held fixed

-16.17%/yr · Stage 1 · years 1–5

Stage 1 growth is solved while Stage 2 growth, terminal growth, discount inputs, and annual overrides remain fixed. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Cash-flow DCF

Price used

$92.44

Estimated value / share

$433.26

Base scenario

This estimate is 368.69% above the price used.

USD · TTM ending 2026-06-30

FCFF base normalized by replacing latest capex with the company's trailing median capex-to-revenue ratio.

Historical FCFF CAGR and the default growth rates are taken from the raw historical series. The valuation base is normalized for the current-period DCF.

Market beta (0.47) is below the minimum default of 0.5 — short lookback windows can understate systematic risk. Beta floored at 0.5 for default assumptions; adjust manually if needed.

This estimate is at least 3× the price used. Review the assumptions behind the gap.

Stage 1 10.62% · Stage 2 5.84% · Discount rate 6.39%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future free cash flow, discounted to its value today.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 11, 2026, 6:37 AM UTC · provider

Why this method?

FCFF is positive, but the year-to-year swings are too large for a direct CAGR. Normalize the cash-flow base first, then run DCF.

Is FCFF positive and has it been for 3+ consecutive years? 28 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 54.3%.

Price vs Fundamentals

Why The Stock Is Moving

Mixed / unclearLow confidence

1Y Price: -9.64%Revenue (TTM): 8.62%FCF (TTM): 28.52%P/FCF: 5th pct

What changed

The stock fell 9.64% over the last year. Revenue grew 8.62% over the trailing twelve months. Operating margin moved from 16.09% to 15.73%. Free cash flow grew 28.52% over the trailing twelve months.

What the market seems to be pricing

What would invalidate this read

Operating margin currently stands at 15.73%. A decisive move in revenue — currently up 8.62% — would be the clearest signal to resolve the ambiguity.

Performance

Return analysis

Company profile

Zimmer Biomet Holdings, Inc. engages in the design, manufacture, and marketing of orthopedic reconstructive products.

CEOIvan Tornos

SectorHealthcare

IndustryMedical - Devices

Employees17,000

IPO dateJul 25, 2001

https://www.zimmerbiomet.com

Market multiples

Forward P/E—

EV/EBITDA11.15

Enterprise value$24.73B

Stock splits

Mar 1, 2022↑ Forward

Every 100 shares became 103

+3%

Profitability & growth

Revenue growth4.8%

Gross margin69.87%▼9.8ppvs FY2024

Operating margin15.73%▼0.2ppvs FY2024

ROE6.42%▲0.8ppvs FY2025

Analyst consensus

RatingHold

Target price$103.11▲11.54%

Buy

Hold

Sell

Analyst ratings tend to be lagging indicators. Use as one signal among many.

Earnings

Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.

Next report

Nov 4, 2026

Q4 FY26 · EPS est $1.89 · Revenue est $2.04B

View

Dividends

$0.96/shareQuarterlyDividend Achiever · 13yrEx-div Sep 30, 2026 · in 19dSafe

ZBH pays a dividend with a 1.04% declared yield, 13 consecutive years of growth, growing at 0.59% annually, covered 7.7× by free cash flow.

Declared Yield

1.04%

Annual Div / Share

$0.96

5yr CAGR

+0.59%

Doubles every ~117.3yr

Payout Ratio

23.35%

Safe

Dividend Growth Rate

3yr CAGR

+0%

5yr CAGR

+0.59%

10yr CAGR

+0.51%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.96+0.0%

2025$0.96+0.0%

2024$0.96+0.0%

2023$0.96+0.7%

2022$0.95+2.2%

2021$0.93+0.0%

2020$0.93+0.0%

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$10/yr

$1/mo

In 5 yrs

$11/yr+3%

$1/mo

In 10 yrs

$11/yr+6%

$1/mo

Today	In 5 yrs	In 10 yrs
$10/yr $1/mo	$11/yr+3% $1/mo	$11/yr+6% $1/mo

Yield-on-cost grows from 1.04% → 1.1% over 10yr

Analysis

Dividend Strengths

Dividend Achiever

ZBH has raised its dividend for 13 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.

Well-covered by free cash flow

The dividend is covered 7.7× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.

Risks to Watch

No strong risk signal stands out from the latest period pair.