Latest Ratios: P/E Ratio 26.3x · EV/EBITDA 11.4x · ROE 5.6%. (1999–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.4B | $17.9B | $21.5B | $25.5B | $26.8B | $26.7B | $31.9B | $30.9B | $21.1B | $24.6B | $20.9B |
| Enterprise Value | $27.4B | $24.8B | $27.2B | $30.9B | $32.1B | $33.4B | $39.2B | $38.5B | $29.5B | $34.2B | $31.5B |
| P/E Ratio → | 26.33 | 25.33 | 23.84 | 24.94 | 115.91 | 66.46 | — | 27.34 | — | 13.35 | 68.75 |
| P/S Ratio | 2.38 | 2.17 | 2.80 | 3.45 | 3.86 | 3.91 | 5.20 | 3.87 | 2.66 | 3.15 | 2.72 |
| P/B Ratio | 1.65 | 1.41 | 1.73 | 2.04 | 2.23 | 2.11 | 2.61 | 2.49 | 1.87 | 2.09 | 2.16 |
| P/FCF | 12.33 | 12.13 | 18.85 | 21.50 | 25.13 | 19.82 | 29.17 | 26.18 | 13.31 | 17.22 | 14.42 |
| P/OCF | 12.04 | 10.53 | 14.36 | 16.14 | 20.87 | 17.81 | 26.46 | 19.50 | 12.07 | 15.52 | 12.79 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 | 4.89 | 6.40 | 4.83 | 3.72 | 4.38 | 4.11 |
| EV / EBITDA | 11.39 | 10.10 | 11.93 | 13.85 | 19.80 | 18.58 | 39.94 | 17.97 | 27.45 | 18.36 | 16.92 |
| EV / EBIT | 20.08 | 22.07 | 21.69 | 24.34 | 56.54 | 47.21 | 366.67 | 34.01 | 1620.13 | 43.27 | 41.72 |
| EV / FCF | — | 16.84 | 23.82 | 26.01 | 30.11 | 24.79 | 35.88 | 32.61 | 18.61 | 23.96 | 21.75 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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 | 0.9% | 1.1% | 0.9% | 0.8% | 0.8% | 0.7% | 0.6% | 0.6% | 0.9% | 0.8% | 0.9% |
| Payout Ratio | 27.0% | 27.0% | 21.7% | 19.6% | 86.9% | 49.8% | — | 17.4% | — | 10.7% | 61.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.8% | 3.9% | 4.2% | 4.0% | 0.9% | 1.5% | — | 3.7% | — | 7.5% | 1.5% |
| FCF Yield | 8.1% | 8.2% | 5.3% | 4.7% | 4.0% | 5.0% | 3.4% | 3.8% | 7.5% | 5.8% | 6.9% |
| Buyback Yield | 2.4% | 2.7% | 4.0% | 2.7% | 0.5% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 2.0% |
| Total Shareholder Yield | 3.3% | 3.8% | 4.9% | 3.5% | 1.2% | 0.7% | 0.6% | 0.6% | 0.9% | 0.8% | 2.9% |
| Shares Outstanding | — | $199M | $204M | $210M | $210M | $217M | $213M | $213M | $210M | $210M | $208M |
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying ZBH stock.
Zimmer Biomet Holdings, Inc.'s current P/E ratio is 26.3x. The historical average is 31.7x. This places it at the 64th percentile of its historical range.
Zimmer Biomet Holdings, Inc.'s current EV/EBITDA is 11.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.6x.
Zimmer Biomet Holdings, Inc.'s return on equity (ROE) is 5.6%. The historical average is 19.4%.
Based on historical data, Zimmer Biomet Holdings, Inc. is trading at a P/E of 26.3x. This is at the 64th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Zimmer Biomet Holdings, Inc.'s current dividend yield is 0.91% with a payout ratio of 27.0%.
Zimmer Biomet Holdings, Inc. has 61.6% gross margin and 16.5% operating margin. Operating margin between 10-20% is typical for established companies.
Zimmer Biomet Holdings, Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Leverage reporting anomaly
Metrics are mathematically derived from official filings.
Forward Discount Versus Trailing Premium
Based on reported figures, ZBH trades at 29.74 times trailing earnings but only 12.37 times forward earnings, a gap that compares with Stryker's 38.79 times trailing multiple and suggests the market is pricing a sharp recovery in per-share earnings.
The spread between trailing and forward P/E implies analysts expect earnings to normalize well above the depressed trailing base, which may reflect the 2025Q4 EPS trough rather than a durable run-rate. EV/EBITDA of 11.14 against a forward 8.38 points the same way, and at 2.48 times sales the stock sits below Stryker and Boston Scientific on revenue, consistent with a value-oriented positioning. Investors should monitor whether forward estimates hold, because the discount depends on earnings conversion that the recent quarterly EPS miss has not yet demonstrated.
Gross Margin Strong, Operating Conversion Weak
As reported in the quarterly income statements, ZBH's gross margin held near 71 percent across most of the ten quarters, yet operating margin of 14.9 percent in 2026Q3 implies that roughly 56 points of gross profit are absorbed by operating costs.
A high and relatively stable gross margin points to pricing durability in the implant franchise, but the wide gap to operating margin indicates that SG&A and R&D carry the bulk of the cost burden. Operating margin peaked near 19.2 percent in 2024Q4 and has not sustained that level, which suggests the expense base has grown faster than gross profit. Net margin of 9.3 percent still trails the 13.7 percent reached in 2024Q3, so below-the-line items appear to be eroding the recovery that gross margin alone would suggest.
Returns Compressed by Large Asset Base
Based on reported figures, ROIC of 1.2 percent in 2026Q3 and ROE of 1.5 percent sit far below the 10 to 11 percent ROIC that Stryker and Boston Scientific report, indicating that a large capital base is generating thin returns for shareholders.
With total assets of roughly $23.5B and goodwill near 44 percent of that base, the denominator is dominated by acquisition accounting rather than productive operating capital. The ROIC series has hovered between 1.1 and 1.6 percent across the ten quarters, showing little compounding and no clear improvement trend. Investors should monitor whether goodwill impairment risk or a shift toward higher-return reinvestment is more likely to change this profile, since the current figures do not yet show an improving return trajectory.
Cash Buffer Thinning Against Obligations
As reported in the balance sheets, ZBH's current ratio fell from 2.44 in 2025Q1 to 1.46 in 2026Q3 while cash declined to roughly $400M, a combination that narrows the short-term cushion against current obligations.
The quick ratio of 0.79 in the latest quarter means that cash, receivables, and near-cash assets cover less than the full current liability base, leaving the company more dependent on continued inventory conversion and collections. A quick ratio that has ranged from 0.63 to 1.69 over the period suggests liquidity has been volatile rather than steadily strengthening. Under a stress scenario, this position would likely require reliance on operating cash flow or credit facilities, and the reported figures alone do not confirm the availability of such facilities.
Debt-to-Equity Figure Warrants Verification
Based on reported figures, the 0.59 debt-to-equity ratio appears low against a $7.5B debt load and a $10.8B total liability base, so the leverage metric may be a reporting artifact that understates true obligations.
Debt-to-EBITDA of 12.73 times in 2026Q3 and interest coverage of 4.07 times imply a considerably more leveraged profile than a 0.59 debt-to-equity ratio would suggest, which indicates the two metrics are not telling the same story. Using debt against EBITDA or enterprise value is more informative for an acquisitive orthopedic company whose equity base is depressed by goodwill, so the most commonly misapplied ratio here is debt-to-equity. The reported leverage picture therefore warrants verification against the underlying debt schedule before drawing conclusions about balance sheet strength.