Is Stryker Corporation (SYK) overvalued?
On Equity Rank's model estimate, SYK trades close to its fair value (4% below it). Stryker Corporation (SYK) last closed at $325.87; the multi-method model fair value is $339.57.
| Price | Model fair value | Price vs model |
|---|---|---|
| $325.87 | $339.57 | 4% below |
What the answer rests on
- 2 of 9 valuation methods put SYK's value above its price and 7 put it below, so the methods mostly agree.
- To justify today's price, SYK's free cash flow would need to grow about 9.3% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 28.1% a year.
- SYK trades at 36.2 times its last year's earnings, against a median of 30.9 for 37 profitable Medical Devices companies.
- Over the past year the price sat below the model fair value on 52% of trading days. The gap ranged from 21% below to 53% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind SYK's fair value · What prices assume · Other companies