---
title: Zimmer Biomet (ZBH) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/zbh
ticker: ZBH
as_of: 2026-10-17
sector: Healthcare
industry: Medical - Devices
---
# Zimmer Biomet (ZBH)

Zimmer Biomet (ZBH) closed at $94.98 on Oct 16, 2026, undervalued by 44% vs its model value of $169.38 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $94.98 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $169.38 |
| Price vs model | undervalued by 44% vs model |
| Range of that model | $84.34 – $397.57 |
| Market value | $18.1B |
| P/E (fiscal 2025) | 26.8 |
| Net margin (fiscal 2025) | 8.6% |
| Free cash flow (fiscal 2025) | $1.5B |
| Dividend yield (trailing twelve months) | 1.01% |
| Beta | 0.48 |
| Cost of capital (WACC) | 6.78% |
| Business classification | Mature & Stable (Low/slowing growth (~6% recent), Moderate margins (9% net margin), Pays dividends, Highly cyclical earnings, Strong FCF yield (8.1%)) |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 1.01% |
| Dividends per share, last 12 months | $0.96 |
| Dividends / free cash flow (fiscal 2025) | 12.9% |
| Raised | — |
| Growth over 5 years | 0.6% a year |
| Latest payment | $0.24, ex-date Sep 30, 2026, paid Oct 30, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Sep 29, 2021 | $0.93 |
| To Sep 29, 2022 | $0.95 |
| To Sep 28, 2023 | $0.96 |
| To Sep 30, 2024 | $0.96 |
| To Sep 30, 2025 | $0.96 |
| Trailing twelve months (to Sep 30, 2026) | $0.96 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $169.38 | $84.34 | $397.57 |
| DCF · Perpetuity growth · 10y | cross check | $176.48 | $92.06 | $413.21 |
| DCF · EBITDA exit · 5y | cross check | $138.22 | $91.74 | $193.02 |
| DCF · EBITDA exit · 10y | cross check | $149.31 | $97.83 | $217.98 |
| P/E · peers | cross check | $105.38 | $99.00 | $113.86 |
| P/E · own history | cross check | $157.65 | $140.04 | $390.84 |
| PEG | sanity check | $213.31 | $213.31 | $213.31 |
| EV/EBITDA · peers | cross check | $133.50 | $101.32 | $237.28 |
| EV/Revenue · peers | cross check | $106.29 | $53.17 | $131.51 |
| Earnings power value | cross check | $14.94 | $5.92 | $29.08 |
| Dividend discount | cross check | $21.17 | $13.70 | $39.77 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 2 open-market sales ($824,028.5); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 1, 2026 | Campbell Gary Craig | President, Americas | Option/RSU exercise | 2,368 | $0 |
| Oct 1, 2026 | Campbell Gary Craig | President, Americas | Tax withholding | 932 | $82,407.4 |
| Oct 1, 2026 | Campbell Gary Craig | President, Americas | Option/RSU exercise | 1,218 | $0 |
| Oct 1, 2026 | Campbell Gary Craig | President, Americas | Tax withholding | 480 | $42,441.6 |
| Oct 1, 2026 | Campbell Gary Craig | President, Americas | Option/RSU exercise | 2,368 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Sep 8, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1136869/000119312526385256/d304716d8k.htm |
| Aug 5, 2026 | 8-K | 8.01 Other Events; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1136869/000119312526335108/zbh-20260805.htm |
| Aug 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1136869/000119312526335044/zbh-20260630.htm |
| Aug 5, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1136869/000119312526333761/zbh-20260805.htm |
| Jun 29, 2026 | 8-K | 1.01 Entry into a Material Agreement; 1.02 Termination of a Material Agreement; 2.03 Creation of a Direct Financial Obligation; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1136869/000119312526288390/d158696d8k.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Dodge & Cox | 2026-06-30 | 24,124,735 | $2.1B |
| Bill Nygren | 2026-06-30 | 12,738,025 | $1.1B |
| Harry Burn | 2026-06-30 | 794,602 | $68.4M |
| Sarah Ketterer | 2026-06-30 | 788,810 | $67.9M |

9 tracked managers in all.

## About

Zimmer Biomet Holdings, Inc. engages in the design, manufacture, and marketing of orthopedic reconstructive products. The firm also offers sports medicine, biologics, extremities, and trauma products, spine, craniomaxillofacial, and thoracic products, office-based technologies, dental implants, and related surgical products. It operates through the following geographical segments: Americas, Europe Middle East and Africa, and Asia Pacific. The Americas segment consists of the U.S. and includes other North, Central and South American markets. The Europe Middle East and Africa segment includes France, Germany, Italy, Spain, and the United Kingdom. The Asia Pacific segment refers to the key markets such as Japan, China, Australia, New Zealand, Korea, Taiwan, India, Thailand, Singapore, Hong Kong, and Malaysia. The company was founded by Justin O. Zimmer in 1927 and is headquartered in Warsaw…

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Source: https://sweetvaluelab.com/stocks/zbh (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.