ISRG Analysis — TradeApes

INTUITIVE SURGICAL INC (ISRG)

Healthcare

$455.49 close · Apr 09, 2026

↑ Overvalued (15/100)

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 80

Operating Trend 55

Valuation 30

Capital Allocation 50

Risk 80

Positives

↑ Net cash position — more cash on hand than total debt +3.8

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ Strong liquidity — current assets more than 2× current liabilities +1.3

Concerns

↓ Extreme P/E — above 45×, very high expectations embedded in price -5.0

Signal contribution: +8.9 from strengths -5.0 from concerns

Health Score Trend 8 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	10.06B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	6.64B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	2.95B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	2.86B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	2.96B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	3.55B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	—
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	3.37B

Valuation

Market Cap	165.21B
Enterprise Value	161.84B
EV / Revenue	16.1x
EV / EBITDA	45.6x
P/E (TTM)	57.8x
Forward P/E (extrapolated)	27.2x
PEG	1.2x
P/FCF	55.8x
FCF Yield	1.8%

DCF Fair Value Range (base CAGR: 16.0%)

Bear

$212.84

Base

$327.74

Bull

$499.59

Bear $213 Current $455.49 (in range) Bull $500

Market is pricing in 22.2% FCF growth annually — base model assumes 16.0%

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	66.0%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	35.2%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	28.4%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	29.4%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	20.5%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	23.0%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	6.89

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Quarterly Financials

Metric	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24	Q2 '24	Q1 '24
Revenue ?Total quarterly sales from primary business operations.	2.87B	2.51B	2.44B	2.25B	2.41B	2.04B	2.01B	1.89B	1.93B	1.74B	1.76B	1.70B
Gross Profit ?Quarterly revenue minus cost of goods sold.	1.90B	1.66B	1.62B	1.46B	1.64B	1.37B	1.37B	1.25B	1.28B	1.17B	1.17B	1.11B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	864.3M	759.7M	743.4M	578.1M	734.9M	577.3M	567.3M	469.4M	450.2M	465.8M	463.2M	387.6M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	794.8M	704.4M	658.4M	698.4M	685.7M	565.1M	526.9M	544.9M	606.2M	415.7M	420.8M	355.3M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	2.48B	—	—	483.8M	2.25B	—	—	87.5M	1.37B	—	—	291.2M

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.