Zimmer Biomet Holdings, Inc. (ZBH) Financial Ratios
27 years of historical data (1999–2025) · Healthcare · Medical - Devices
EV/EBITDA
↓
9.44
↓-36% vs avg
5yr avg: 14.76
30Y Low6.7·High39.0
P/FCF
↓
11.04
↓-43% vs avg
5yr avg: 19.37
30Y Low9.2·High49.2
P/B Ratio
↓
1.30
↓-31% vs avg
5yr avg: 1.89
30Y Low1.4·High73.2
ROE
↑
5.6%
↓+6% vs avg
5yr avg: 5.3%
30Y Low-3%·High116%
Debt/EBITDA
↓
3.06
↓-3% vs avg
5yr avg: 3.16
30Y Low0.1·High9.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ZBH Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Zimmer Biomet Holdings, Inc. trades at 23.4x earnings, 54% below its 5-year average of 50.9x, sitting at the 45th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.2x, the stock trades at a premium of 5%. On a free-cash-flow basis, the stock trades at 11.0x P/FCF, 43% below the 5-year average of 19.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $16.3B | $17.9B | $21.5B | $25.5B | $26.8B | $25.9B | $30.9B | $30.0B | $20.5B | $23.8B | $20.3B |
| Enterprise Value | $23.2B | $24.8B | $27.2B | $30.9B | $32.1B | $32.6B | $38.3B | $37.6B | $28.9B | $33.5B | $30.9B |
| P/E Ratio → | 23.38 | 25.33 | 23.84 | 24.94 | 115.91 | 64.52 | — | 26.55 | — | 12.96 | 66.75 |
| P/S Ratio | 1.97 | 2.17 | 2.80 | 3.45 | 3.86 | 3.80 | 5.05 | 3.76 | 2.58 | 3.06 | 2.64 |
| P/B Ratio | 1.30 | 1.41 | 1.73 | 2.04 | 2.23 | 2.05 | 2.54 | 2.42 | 1.82 | 2.03 | 2.10 |
| P/FCF | 11.04 | 12.13 | 18.85 | 21.50 | 25.13 | 19.25 | 28.32 | 25.41 | 12.92 | 16.72 | 14.00 |
| P/OCF | 9.58 | 10.53 | 14.36 | 16.14 | 20.87 | 17.30 | 25.69 | 18.93 | 11.72 | 15.07 | 12.42 |
P/E links to full P/E history page with 30-year chart
ZBH EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Zimmer Biomet Holdings, Inc.'s enterprise value stands at 9.4x EBITDA, 36% below its 5-year average of 14.8x. The Healthcare sector median is 14.0x, placing the stock at a 33% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.01 | 3.54 | 4.18 | 4.63 | 4.78 | 6.25 | 4.71 | 3.64 | 4.29 | 4.03 |
| EV / EBITDA | 9.44 | 10.10 | 11.93 | 13.85 | 19.80 | 18.14 | 38.99 | 17.55 | 26.88 | 17.97 | 16.59 |
| EV / EBIT | 17.02 | 22.07 | 21.69 | 24.34 | 56.54 | 46.11 | 357.99 | 33.21 | 1586.38 | 42.36 | 40.91 |
| EV / FCF | — | 16.84 | 23.82 | 26.01 | 30.11 | 24.21 | 35.03 | 31.85 | 18.22 | 23.46 | 21.33 |
ZBH Profitability
Margins and return-on-capital ratios measuring operating efficiency
Zimmer Biomet Holdings, Inc. earns an operating margin of 16.5%. ROE of 5.6% is modest. ROIC of 5.4% represents adequate returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.6% | 61.6% | 71.5% | 71.8% | 70.9% | 71.3% | 70.2% | 71.8% | 71.4% | 72.7% | 68.9% |
| Operating Margin | 16.5% | 16.5% | 16.7% | 17.3% | 10.0% | 12.6% | 1.4% | 14.3% | 0.4% | 10.2% | 10.7% |
| Net Profit Margin | 8.6% | 8.6% | 11.8% | 13.8% | 3.3% | 5.9% | -2.3% | 14.2% | -4.8% | 23.2% | 4.0% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.6% | 5.6% | 7.2% | 8.4% | 1.9% | 3.2% | -1.1% | 9.6% | -3.3% | 16.9% | 3.1% |
| ROA | 3.2% | 3.2% | 4.2% | 4.8% | 1.0% | 1.7% | -0.6% | 4.6% | -1.5% | 6.9% | 1.1% |
| ROIC | 5.4% | 5.4% | 5.4% | 5.4% | 2.8% | 3.3% | 0.3% | 4.3% | 0.1% | 2.9% | 3.1% |
| ROCE | 6.9% | 6.9% | 6.8% | 6.8% | 3.6% | 4.1% | 0.4% | 5.3% | 0.2% | 3.4% | 3.3% |
ZBH Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Zimmer Biomet Holdings, Inc. carries a Debt/EBITDA ratio of 3.1x, which is moderately leveraged (roughly in line with the sector average of 3.1x). Net debt stands at $6.9B ($7.5B total debt minus $592M cash). Interest coverage of 3.8x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.59 | 0.59 | 0.50 | 0.46 | 0.47 | 0.56 | 0.67 | 0.66 | 0.79 | 0.86 | 1.16 |
| Debt / EBITDA | 3.06 | 3.06 | 2.72 | 2.59 | 3.51 | 3.93 | 8.28 | 3.84 | 8.32 | 5.45 | 6.04 |
| Net Debt / Equity | — | 0.55 | 0.46 | 0.43 | 0.44 | 0.53 | 0.60 | 0.61 | 0.74 | 0.82 | 1.10 |
| Net Debt / EBITDA | 2.82 | 2.82 | 2.49 | 2.40 | 3.28 | 3.72 | 7.46 | 3.55 | 7.82 | 5.17 | 5.70 |
| Debt / FCF | — | 4.70 | 4.97 | 4.51 | 4.99 | 4.97 | 6.70 | 6.44 | 5.30 | 6.74 | 7.33 |
| Interest Coverage | 3.84 | 3.84 | 5.76 | 6.30 | 3.45 | 3.39 | 0.50 | 4.99 | 0.06 | 2.43 | 2.13 |
ZBH Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.98x means Zimmer Biomet Holdings, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 1.10x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.61x to 1.98x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.98 | 1.98 | 1.91 | 1.61 | 1.88 | 1.41 | 1.99 | 1.37 | 1.83 | 1.49 | 1.96 |
| Quick Ratio | 1.10 | 1.10 | 0.99 | 0.78 | 0.97 | 0.79 | 1.03 | 0.68 | 0.90 | 0.81 | 1.14 |
| Cash Ratio | 0.23 | 0.23 | 0.21 | 0.15 | 0.16 | 0.11 | 0.31 | 0.18 | 0.22 | 0.17 | 0.27 |
| Asset Turnover | — | 0.36 | 0.36 | 0.34 | 0.33 | 0.29 | 0.25 | 0.32 | 0.33 | 0.30 | 0.29 |
| Inventory Turnover | 1.38 | 1.38 | 0.98 | 0.87 | 0.94 | 0.91 | 0.74 | 0.94 | 1.01 | 1.02 | 1.21 |
| Days Sales Outstanding | — | 75.58 | 70.38 | 71.20 | 72.66 | 67.34 | 86.53 | 62.37 | 58.70 | 72.23 | 76.37 |
ZBH Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Zimmer Biomet Holdings, Inc. returns 4.2% to shareholders annually — split between a 1.2% dividend yield and 3.0% buyback yield. The payout ratio of 27.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 4.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.2% | 1.1% | 0.9% | 0.8% | 0.8% | 0.8% | 0.6% | 0.7% | 1.0% | 0.8% | 0.9% |
| Payout Ratio | 27.0% | 27.0% | 21.7% | 19.6% | 86.9% | 49.8% | — | 17.4% | — | 10.7% | 61.6% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 3.9% | 4.2% | 4.0% | 0.9% | 1.5% | — | 3.8% | — | 7.7% | 1.5% |
| FCF Yield | 9.1% | 8.2% | 5.3% | 4.7% | 4.0% | 5.2% | 3.5% | 3.9% | 7.7% | 6.0% | 7.1% |
| Buyback Yield | 3.0% | 2.7% | 4.0% | 2.7% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 2.1% |
| Total Shareholder Yield | 4.2% | 3.8% | 4.9% | 3.5% | 1.2% | 0.8% | 0.6% | 0.7% | 1.0% | 0.8% | 3.0% |
| Shares Outstanding | — | $199M | $204M | $210M | $210M | $210M | $207M | $207M | $204M | $204M | $202M |
Peer Comparison
Compare ZBH with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ZBHYou | $16B | 23.4 | 9.4 | 11.0 | 61.6% | 16.5% | 5.6% | 5.4% | 3.1 |
 SYK | $113B | 35.1 | 20.4 | 26.4 | 64.0% | 19.5% | 15.1% | 11.4% | 2.4 |
 BSX | $83B | 28.9 | 25.1 | 22.7 | 69.0% | 19.8% | 12.4% | 8.8% | 3.3 |
 MDT | $100B | 21.5 | 14.3 | 19.2 | 65.3% | 17.8% | 9.4% | 6.0% | 3.2 |
 SNN | $13B | 21.7 | 10.2 | 15.6 | 68.0% | 16.3% | 11.9% | 9.4% | 2.1 |
 GMED | $12B | 23.0 | 19.6 | 20.7 | 67.4% | 16.3% | 12.3% | 8.9% | 0.2 |
 JNJ | $544B | 39.0 | 18.9 | 27.4 | 69.1% | 24.9% | 20.1% | 20.7% | 1.2 |
 ATEC | $2B | -10.7 | 4615.0 | 557.8 | 69.6% | -10.7% | -630.7% | -12.6% | 1425.2 |
 XTNT | $81M | -4.8 | — | — | 58.2% | -10.3% | -34.9% | -12.8% | — |
 OFIX | $499M | -5.5 | — | — | 67.1% | -8.3% | -19.3% | -8.6% | — |
 AHCO | $2B | -22.6 | 5.7 | 7.3 | 17.5% | 5.7% | -4.6% | 4.0% | 3.2 |
| Healthcare Median | — | 22.2 | 14.0 | 18.6 | 64.1% | -5.3% | -34.0% | -11.2% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 27 years · Updated daily
Full ZBH Stock Analysis
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Start ComparisonZBH — Frequently Asked Questions
Quick answers to the most common questions about buying ZBH stock.
What is Zimmer Biomet Holdings, Inc.'s P/E ratio?
Zimmer Biomet Holdings, Inc.'s current P/E ratio is 23.4x. The historical average is 31.4x. This places it at the 45th percentile of its historical range.
What is Zimmer Biomet Holdings, Inc.'s EV/EBITDA?
Zimmer Biomet Holdings, Inc.'s current EV/EBITDA is 9.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.4x.
What is Zimmer Biomet Holdings, Inc.'s ROE?
Zimmer Biomet Holdings, Inc.'s return on equity (ROE) is 5.6%. The historical average is 19.4%.
Is ZBH stock overvalued?
Based on historical data, Zimmer Biomet Holdings, Inc. is trading at a P/E of 23.4x. This is at the 45th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Zimmer Biomet Holdings, Inc.'s dividend yield?
Zimmer Biomet Holdings, Inc.'s current dividend yield is 1.15% with a payout ratio of 27.0%.
What are Zimmer Biomet Holdings, Inc.'s profit margins?
Zimmer Biomet Holdings, Inc. has 61.6% gross margin and 16.5% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Zimmer Biomet Holdings, Inc. have?
Zimmer Biomet Holdings, Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.