Orthopedic, Prosthetic & Surgical Appliances & Supplies · SIC 3842

INTUITIVE SURGICAL INC

ISRG

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Latest revenue

$2.77B

as of 2026-03-31

Latest net income

$821.5M

as of 2026-03-31

Net margin

29.6%

as of 2026-03-31

Community sentiment

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ISRG vs S&P 500 · rebased to 100

-13.4% / yr 33.1 pts / yr vs S&P 500(S&P 500 +19.7% / yr) 51.2% total
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Market data

Price feed temporarily unavailable for ISRG.

What this company does

AI

ITEM 1. BUSINESS In this report, “Intuitive Surgical,” “Intuitive,” the “Company,” “we,” “us,” and “our” refer to Intuitive Surgical, Inc. and its wholly and majority-owned subsidiaries. Product and brand names and logos, including Intuitive, da Vinci, and Ion, are trademarks or registered trademarks of Intuitive Surgical, Inc. or one of its subsidiaries or of their respective owners. Additional information about our trademarks can be found on our website at www.intuitive.com/trademarks. Although we reference our trademarks located on our website, this list of trademarks and any other materials on our corporate website are not incorporated by reference into this Form 10-K or any of our…

AI summary unavailable — showing raw filing excerpt

Generated from ISRG's filing dated 2026-02-03

Key risks

AI

Table of Contents ITEM 1A. RISK FACTORS You should consider each of the following risk factors, which could materially affect our business, financial condition, or future results of operations. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or future results of operations. In addition, the global economic environment may amplify many of these risks. RISKS RELATING TO OUR BUSINESS OUR COMMERCIAL LANDSCAPE IS HIGHLY COMPETITIVE, AND CUSTOMERS MAY CHOOSE OUR COMPETITORS’ PRODUCTS OR SERVICES OR MAY NOT ACCEPT ROBOTIC-ASSISTED MEDICAL PROCEDURES, WHICH COULD RESULT IN…

AI summary unavailable — showing raw filing excerpt

Generated from ISRG's filing dated 2026-02-03

5.8
of 10

ActaClear Score

Neutral
#16 of 28 in Orthopedic, Prosthetic & Surgical Appliances & Supplies
-0.2 · 5d
Profitability·25%
9.3
Growth·15%
8.1
Value·20%
3.7
Quality·20%
Momentum·20%
1.9

Computed from 5 years of SEC fundamentals + latest market data, ranked within Orthopedic, Prosthetic & Surgical Appliances & Supplies (28 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.

1.13
Price / FV

Fair value · DCF

Fair value
~12% downside at this growth
18.2% / yr
-5%30%
Terminal growthWACC 9.8% · 10y forecast
Market-implied growth at today's price: 19.9% / yrfor 10 years, holding WACC 9.8% and terminal 2.5%.
Current price
$419
DCF fair value
$370
FCF base (last FY)
$2.86B
Net debt
$-3.37B
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does ISRG's current valuation compare to its own past?

Current P/E
51.9×
Own 5y average
73.1×
Own 5y median
71.7×
vs. own average
-29%
Industry 5y avg P/E
35.3×
Median P/E across the top 25 peers in Orthopedic, Prosthetic & Surgical Appliances & Supplies by market cap, then averaged across 6 years.
vs. industry
+47%
PEG (this co.)
2.85
5y revenue CAGR
18.2%
Industry PEG
3.07
Industry 5y avg growth
11.5%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.