<div id="readability-page-1"><div><ul> <li>If you are wondering whether Intuitive Surgical at around US$500.76 a share still offers value or has run ahead of itself, you are not alone.</li> <li>The stock has had a mixed run, with a 0.9% gain over the last 7 days, a 6.4% decline over the past month, a 10.9% decline year to date, and a 17.7% decline over the past year, while still showing a 114.4% return over 3 years and 98.0% over 5 years.</li> <li>Recent coverage has focused on Intuitive Surgical's position as a key player in robotic assisted surgery and how that role fits into long term healthcare trends. This context has helped frame the recent share price moves as investors weigh the long history of returns against current expectations for the business.</li> <li>Our model currently gives Intuitive Surgical a valuation score of 1 out of 6, which suggests that only one of six valuation checks points to the shares looking undervalued. We will walk through what that means using different valuation methods, then finish with a way of thinking about value that can put all these pieces together.</li> </ul> Intuitive Surgical scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. <h2>Approach 1: Intuitive Surgical Discounted Cash Flow (DCF) Analysis</h2> A Discounted Cash Flow, or DCF, model takes estimates of a company’s future cash flows and discounts them back to today using a required rate of return. This is used to arrive at an estimate of what the business might be worth per share right now. For Intuitive Surgical, the model used is a 2 Stage Free Cash Flow to Equity approach. The company’s latest twelve month free cash flow is about $1.96b. Analyst estimates and subsequent extrapolations point to free cash flow of $6.08b in 2030, with a path that runs through projected figures such as $4.04b in 2026 and $5.47b in 2029. Simply Wall St uses analyst inputs for the earlier years, then extends those trends for later years where broker forecasts are not available. Discounting this stream of cash flows back to today gives an estimated intrinsic value of about $377.65 per share. Against a current share price of around $500.76, the model implies the stock is roughly 32.6% overvalued based on these cash flow assumptions. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests Intuitive Surgical may be overvalued by 32.6%. Discover 53 high quality undervalued stocks or create your own screener to find better value opportunities. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bf2a74b8-deca-49f7-aa02-2777caa86b09/chart/dcf/query-ZGF0ZT0yMDI2LTAyLTE5?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bf2a74b8-deca-49f7-aa02-2777caa86b09/chart/dcf/query-ZGF0ZT0yMDI2LTAyLTE5"/><figcaption>ISRG Discounted Cash Flow as at Feb 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Intuitive Surgical. <h2>Approach 2: Intuitive Surgical Price vs Earnings</h2> For profitable companies like Intuitive Surgical, the P/E ratio is a common way to think about what you are paying for each dollar of earnings. It ties directly to how the market views the company’s earnings power today, rather than long range cash flow projections. What counts as a “normal” P/E depends on how quickly earnings are expected to grow and how risky those earnings are. Higher expected growth or lower perceived risk can justify a higher multiple, while slower growth or higher risk usually points to a lower one. Intuitive Surgical is currently trading on a P/E of 62.27x. That is well above the Medical Equipment industry average of 30.87x and also above the peer average of 35.28x. Simply Wall St’s Fair Ratio for Intuitive Surgical is 37.79x. This Fair Ratio is a proprietary estimate of the P/E that might be reasonable given factors such as the company’s earnings growth profile, its industry, profit margins, market cap and key risks. Because it is tailored to the company, it can be more informative than a simple comparison with peers or the broad industry. With the current P/E of 62.27x versus a Fair Ratio of 37.79x, the shares appear expensive on this measure. Result: OVERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bf2a74b8-deca-49f7-aa02-2777caa86b09/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAyLTE5?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bf2a74b8-deca-49f7-aa02-2777caa86b09/chart/pe-multiple-vs-industry/query-ZGF0ZT0yMDI2LTAyLTE5"/><figcaption>NasdaqGS:ISRG P/E Ratio as at Feb 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Start investing in legacies, not executives. Discover our 22 top founder-led companies. <h3>Upgrade Your Decision Making: Choose your Intuitive Surgical Narrative</h3> Earlier we mentioned that there is an even better way to think about value, so let us introduce Narratives. With Narratives, you set a story for Intuitive Surgical, link that story to specific assumptions for future revenue, earnings and margins, and see the Fair Value that falls out of those numbers. On Simply Wall St, Narratives sit inside the Community page and give you a simple toolkit used by millions of investors to connect a company’s story with a forecast and then a Fair Value that you can easily compare with the current share price to help you decide whether you think the stock belongs on your buy, hold, or sell list. Because Narratives update automatically when new news, guidance, or earnings are added to the platform, your Fair Value view can evolve in real time instead of being a one off spreadsheet that quickly goes stale. For Intuitive Surgical, for example, one bearish Narrative on the platform assumes a Fair Value around US$468 per share, while a bullish Narrative sits closer to US$750 per share. This shows how different views on future growth, margins, and P/E can lead to very different conclusions about what the same company is worth. For Intuitive Surgical however we will make it really easy for you with previews of two leading Intuitive Surgical Narratives: 🐂 Intuitive Surgical Bull Case Fair value: US$750.00 Implied upside from fair value vs last close: 33.3% undervalued Assumed annual revenue growth: 16.0% <ul> <li>Bullish analysts see faster da Vinci 5 adoption, richer digital tools, and new procedure categories supporting higher revenue and resilient margins.</li> <li>They anchor on revenue of US$14.6b and earnings of US$4.1b by 2028, with the shares trading on a P/E of 67.7x and a discount rate just above 7%.</li> <li>This camp typically expects the sector to support premium multiples if procedure trends, international expansion, and digital ecosystem uptake stay on track.</li> </ul> 🐻 Intuitive Surgical Bear Case Fair value: US$468.32 Implied downside from fair value vs last close: 6.9% overvalued Assumed annual revenue growth: 10.1% <ul> <li>Bearish analysts focus on pressures from tariffs, healthcare cost controls, and stronger competition, which they see weighing on pricing and margins over time.</li> <li>Their framework is built around revenues of US$12.5b and earnings of US$3.2b by 2028, with a future P/E multiple of about 53.4x and a similar discount rate near 7%.</li> <li>This view suggests the current price already factors in strong execution, so any shortfall in procedure growth, system placements, or platform rollout could leave limited valuation support.</li> </ul> These two Narratives bracket the current debate and give you a structured way to test which set of assumptions, if either, feels closer to how you see Intuitive Surgical’s future playing out. Curious how numbers become stories that shape markets? Explore Community Narratives Do you think there's more to the story for Intuitive Surgical? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bf2a74b8-deca-49f7-aa02-2777caa86b09/chart/quote-price/query-ZGF0ZT0yMDI2LTAyLTE5?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/bf2a74b8-deca-49f7-aa02-2777caa86b09/chart/quote-price/query-ZGF0ZT0yMDI2LTAyLTE5"/><figcaption>NasdaqGS:ISRG 1-Year Stock Price Chart</figcaption></figure> This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<div><h3>New: AI Stock Screener &amp; Alerts</h3>Our new AI Stock Screener scans the market every day to uncover opportunities.<div>• Dividend Powerhouses (3%+ Yield) • Undervalued Small Caps with Insider Buying • High growth Tech and AI CompaniesOr build your own from over 50 metrics.</div>Explore Now for Free</div></div></div>

ISUL

ISRG

Intuitive Surgical (ISRG) shares are currently priced at approximately $500.76, showing a mixed performance with a 0.9% gain over the past week but a 17.7% decline over the last year. Valuation analysis indicates the stock is overvalued by 32.6% based on a Discounted Cash Flow model, estimating an intrinsic value of $377.65 per share. Additionally, the company's P/E ratio of 62.27x significantly exceeds industry averages, suggesting the shares are expensive. Overall, the analysis raises concerns about the stock's current valuation amidst its role in robotic-assisted surgery and healthcare trends.

Simplywall

Is It Too Late To Consider Intuitive Surgical (ISRG) After Recent Share Price Weakness?