Intrinsic value of Intuitive Surgical - ISRG

Previous Close

$948.94

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$948.94

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of ISRG stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 37.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  13.42
  11.80
  11.12
  10.51
  9.96
  9.46
  9.02
  8.61
  8.25
  7.93
  7.63
  7.37
  7.13
  6.92
  6.73
  6.56
  6.40
  6.26
  6.13
  6.02
  5.92
  5.83
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.40
  5.36
  5.32
Revenue, $m
  2,704
  3,023
  3,359
  3,712
  4,082
  4,468
  4,871
  5,290
  5,727
  6,181
  6,653
  7,143
  7,653
  8,183
  8,733
  9,306
  9,901
  10,521
  11,166
  11,839
  12,539
  13,270
  14,032
  14,828
  15,658
  16,526
  17,433
  18,382
  19,373
  20,411
  21,497
Variable operating expenses, $m
 
  1,083
  1,201
  1,325
  1,455
  1,591
  1,733
  1,880
  2,034
  2,193
  2,359
  2,511
  2,691
  2,877
  3,070
  3,272
  3,481
  3,699
  3,926
  4,162
  4,408
  4,665
  4,933
  5,213
  5,505
  5,810
  6,129
  6,462
  6,811
  7,176
  7,558
Fixed operating expenses, $m
 
  827
  848
  869
  891
  913
  936
  959
  983
  1,008
  1,033
  1,059
  1,085
  1,112
  1,140
  1,169
  1,198
  1,228
  1,259
  1,290
  1,322
  1,355
  1,389
  1,424
  1,460
  1,496
  1,534
  1,572
  1,611
  1,651
  1,693
Total operating expenses, $m
  1,759
  1,910
  2,049
  2,194
  2,346
  2,504
  2,669
  2,839
  3,017
  3,201
  3,392
  3,570
  3,776
  3,989
  4,210
  4,441
  4,679
  4,927
  5,185
  5,452
  5,730
  6,020
  6,322
  6,637
  6,965
  7,306
  7,663
  8,034
  8,422
  8,827
  9,251
Operating income, $m
  945
  1,113
  1,310
  1,518
  1,736
  1,964
  2,202
  2,451
  2,710
  2,980
  3,261
  3,573
  3,877
  4,193
  4,523
  4,865
  5,222
  5,594
  5,982
  6,386
  6,809
  7,249
  7,710
  8,191
  8,694
  9,220
  9,771
  10,347
  10,951
  11,584
  12,247
EBITDA, $m
  1,037
  1,206
  1,411
  1,627
  1,854
  2,091
  2,339
  2,598
  2,868
  3,148
  3,441
  3,745
  4,061
  4,390
  4,732
  5,089
  5,460
  5,847
  6,250
  6,671
  7,109
  7,568
  8,046
  8,547
  9,070
  9,617
  10,189
  10,789
  11,416
  12,074
  12,762
Interest expense (income), $m
  0
  0
  3
  6
  9
  13
  16
  20
  24
  28
  32
  36
  41
  45
  50
  55
  60
  66
  72
  77
  84
  90
  97
  104
  111
  119
  127
  135
  144
  153
  162
Earnings before tax, $m
  981
  1,113
  1,307
  1,512
  1,727
  1,952
  2,186
  2,431
  2,687
  2,952
  3,229
  3,537
  3,836
  4,148
  4,472
  4,810
  5,162
  5,528
  5,910
  6,309
  6,725
  7,159
  7,613
  8,087
  8,583
  9,102
  9,644
  10,213
  10,808
  11,431
  12,084
Tax expense, $m
  245
  301
  353
  408
  466
  527
  590
  656
  725
  797
  872
  955
  1,036
  1,120
  1,208
  1,299
  1,394
  1,493
  1,596
  1,703
  1,816
  1,933
  2,055
  2,184
  2,317
  2,457
  2,604
  2,757
  2,918
  3,086
  3,263
Net income, $m
  736
  812
  954
  1,104
  1,261
  1,425
  1,596
  1,775
  1,961
  2,155
  2,357
  2,582
  2,801
  3,028
  3,265
  3,511
  3,768
  4,036
  4,315
  4,606
  4,909
  5,226
  5,557
  5,904
  6,265
  6,644
  7,040
  7,455
  7,890
  8,345
  8,822

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  2,555
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  6,487
  4,394
  4,883
  5,396
  5,933
  6,494
  7,080
  7,690
  8,324
  8,984
  9,670
  10,383
  11,123
  11,893
  12,693
  13,526
  14,391
  15,292
  16,230
  17,207
  18,226
  19,288
  20,396
  21,552
  22,759
  24,021
  25,339
  26,717
  28,159
  29,667
  31,245
Adjusted assets (=assets-cash), $m
  3,932
  4,394
  4,883
  5,396
  5,933
  6,494
  7,080
  7,690
  8,324
  8,984
  9,670
  10,383
  11,123
  11,893
  12,693
  13,526
  14,391
  15,292
  16,230
  17,207
  18,226
  19,288
  20,396
  21,552
  22,759
  24,021
  25,339
  26,717
  28,159
  29,667
  31,245
Revenue / Adjusted assets
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
  0.688
Average production assets, $m
  486
  544
  605
  668
  735
  804
  877
  952
  1,031
  1,113
  1,198
  1,286
  1,378
  1,473
  1,572
  1,675
  1,782
  1,894
  2,010
  2,131
  2,257
  2,389
  2,526
  2,669
  2,819
  2,975
  3,138
  3,309
  3,487
  3,674
  3,869
Working capital, $m
  2,653
  109
  121
  134
  147
  161
  175
  190
  206
  223
  240
  257
  276
  295
  314
  335
  356
  379
  402
  426
  451
  478
  505
  534
  564
  595
  628
  662
  697
  735
  774
Total debt, $m
  0
  82
  170
  262
  359
  460
  565
  675
  789
  908
  1,032
  1,160
  1,293
  1,432
  1,576
  1,726
  1,881
  2,044
  2,212
  2,388
  2,572
  2,763
  2,962
  3,170
  3,388
  3,615
  3,852
  4,100
  4,360
  4,631
  4,915
Total liabilities, $m
  709
  791
  879
  971
  1,068
  1,169
  1,274
  1,384
  1,498
  1,617
  1,741
  1,869
  2,002
  2,141
  2,285
  2,435
  2,590
  2,753
  2,921
  3,097
  3,281
  3,472
  3,671
  3,879
  4,097
  4,324
  4,561
  4,809
  5,069
  5,340
  5,624
Total equity, $m
  5,778
  3,603
  4,004
  4,424
  4,865
  5,325
  5,805
  6,305
  6,826
  7,367
  7,929
  8,514
  9,121
  9,752
  10,409
  11,091
  11,801
  12,540
  13,309
  14,110
  14,945
  15,816
  16,724
  17,673
  18,663
  19,697
  20,778
  21,908
  23,090
  24,327
  25,621
Total liabilities and equity, $m
  6,487
  4,394
  4,883
  5,395
  5,933
  6,494
  7,079
  7,689
  8,324
  8,984
  9,670
  10,383
  11,123
  11,893
  12,694
  13,526
  14,391
  15,293
  16,230
  17,207
  18,226
  19,288
  20,395
  21,552
  22,760
  24,021
  25,339
  26,717
  28,159
  29,667
  31,245
Debt-to-equity ratio
  0.000
  0.020
  0.040
  0.060
  0.070
  0.090
  0.100
  0.110
  0.120
  0.120
  0.130
  0.140
  0.140
  0.150
  0.150
  0.160
  0.160
  0.160
  0.170
  0.170
  0.170
  0.170
  0.180
  0.180
  0.180
  0.180
  0.190
  0.190
  0.190
  0.190
  0.190
Adjusted equity ratio
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820
  0.820

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  736
  812
  954
  1,104
  1,261
  1,425
  1,596
  1,775
  1,961
  2,155
  2,357
  2,582
  2,801
  3,028
  3,265
  3,511
  3,768
  4,036
  4,315
  4,606
  4,909
  5,226
  5,557
  5,904
  6,265
  6,644
  7,040
  7,455
  7,890
  8,345
  8,822
Depreciation, amort., depletion, $m
  92
  93
  101
  109
  118
  127
  137
  147
  158
  168
  180
  171
  184
  196
  210
  223
  238
  253
  268
  284
  301
  318
  337
  356
  376
  397
  418
  441
  465
  490
  516
Funds from operations, $m
  1,040
  905
  1,055
  1,213
  1,379
  1,552
  1,733
  1,922
  2,119
  2,324
  2,537
  2,753
  2,984
  3,224
  3,474
  3,735
  4,006
  4,288
  4,583
  4,890
  5,210
  5,545
  5,894
  6,259
  6,641
  7,041
  7,459
  7,896
  8,355
  8,835
  9,338
Change in working capital, $m
  -3
  11
  12
  13
  13
  14
  15
  15
  16
  16
  17
  18
  18
  19
  20
  21
  21
  22
  23
  24
  25
  26
  27
  29
  30
  31
  33
  34
  36
  37
  39
Cash from operations, $m
  1,043
  898
  1,043
  1,200
  1,365
  1,538
  1,719
  1,907
  2,103
  2,307
  2,520
  2,736
  2,966
  3,205
  3,455
  3,714
  3,984
  4,266
  4,559
  4,865
  5,185
  5,518
  5,867
  6,231
  6,611
  7,009
  7,426
  7,862
  8,319
  8,797
  9,298
Maintenance CAPEX, $m
  0
  -65
  -73
  -81
  -89
  -98
  -107
  -117
  -127
  -137
  -148
  -160
  -171
  -184
  -196
  -210
  -223
  -238
  -253
  -268
  -284
  -301
  -318
  -337
  -356
  -376
  -397
  -418
  -441
  -465
  -490
New CAPEX, $m
  -54
  -58
  -61
  -64
  -67
  -70
  -73
  -76
  -79
  -82
  -85
  -88
  -92
  -95
  -99
  -103
  -107
  -112
  -116
  -121
  -126
  -132
  -137
  -143
  -150
  -156
  -163
  -171
  -179
  -187
  -195
Cash from investing activities, $m
  -1,279
  -123
  -134
  -145
  -156
  -168
  -180
  -193
  -206
  -219
  -233
  -248
  -263
  -279
  -295
  -313
  -330
  -350
  -369
  -389
  -410
  -433
  -455
  -480
  -506
  -532
  -560
  -589
  -620
  -652
  -685
Free cash flow, $m
  -236
  775
  910
  1,056
  1,210
  1,371
  1,539
  1,714
  1,898
  2,088
  2,287
  2,488
  2,703
  2,926
  3,159
  3,401
  3,654
  3,917
  4,191
  4,476
  4,775
  5,086
  5,411
  5,751
  6,106
  6,477
  6,866
  7,273
  7,699
  8,145
  8,613
Issuance/(repayment) of debt, $m
  0
  82
  88
  92
  97
  101
  105
  110
  114
  119
  123
  128
  133
  139
  144
  150
  156
  162
  169
  176
  183
  191
  199
  208
  217
  227
  237
  248
  259
  271
  284
Issuance/(repurchase) of shares, $m
  538
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  559
  82
  88
  92
  97
  101
  105
  110
  114
  119
  123
  128
  133
  139
  144
  150
  156
  162
  169
  176
  183
  191
  199
  208
  217
  227
  237
  248
  259
  271
  284
Total cash flow (excl. dividends), $m
  322
  857
  998
  1,148
  1,306
  1,472
  1,644
  1,824
  2,012
  2,207
  2,410
  2,616
  2,836
  3,065
  3,303
  3,551
  3,810
  4,079
  4,360
  4,652
  4,958
  5,277
  5,610
  5,959
  6,323
  6,705
  7,103
  7,521
  7,959
  8,417
  8,897
Retained Cash Flow (-), $m
  -1,458
  -380
  -401
  -421
  -441
  -460
  -480
  -500
  -520
  -541
  -562
  -584
  -607
  -631
  -656
  -682
  -710
  -739
  -769
  -801
  -835
  -871
  -908
  -948
  -990
  -1,034
  -1,081
  -1,130
  -1,182
  -1,237
  -1,294
Prev. year cash balance distribution, $m
 
  2,555
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  3,032
  597
  728
  866
  1,011
  1,164
  1,324
  1,491
  1,666
  1,848
  2,032
  2,229
  2,434
  2,647
  2,869
  3,100
  3,340
  3,590
  3,851
  4,123
  4,406
  4,702
  5,011
  5,333
  5,670
  6,022
  6,391
  6,777
  7,180
  7,603
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  2,907
  547
  633
  713
  784
  845
  895
  932
  957
  969
  965
  951
  925
  889
  842
  788
  727
  661
  593
  524
  456
  390
  328
  272
  221
  176
  137
  105
  78
  57
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Intuitive Surgical, Inc. designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. The company’s da Vinci surgical System translates a surgeon’s natural hand movements, which are performed on instrument controls at a console into corresponding micro-movements of instruments positioned inside the patient through small incisions or ports. Its da Vinci surgical system include surgeon’s consoles, patient-side carts, 3-D vision systems, da Vinci skills simulators, da Vinci Xi integrated table motions, and Firefly fluorescence imaging products that enable surgeons to perform various surgical procedures, including gynecologic, urologic, general, cardiothoracic, and head and neck surgical procedures. The company also manufactures EndoWrist instruments that include forceps, scissors, electrocautery, scalpels, and other surgical tools, which incorporate wrist joints for natural dexterity for various surgical procedures. In addition, it offers da Vinci Single-Site instruments and accessories that allow surgical systems to work through a single incision; and EndoWrist One vessel sealers that are wristed single-use instruments intended for bipolar coagulation and mechanical transection of vessels up to 7 mm in diameter and tissue bundles that fit in the jaws of the instrument. Further, the company provides EndoWrist stapler, a wristed stapling instrument intended for resection, transection, and/or creation of anastomoses, as well as sells various accessory products, including replacement 3-D stereo endoscopes, camera heads, light guides, and other items that facilitate use of the da Vinci system, as well as sterile drapes for ensuring a sterile field during surgery. It markets its products directly and through distributors in the United States, Europe, Asia, and internationally. Intuitive Surgical, Inc. was founded in 1995 and is headquartered in Sunnyvale, California.

FINANCIAL RATIOS  of  Intuitive Surgical (ISRG)

Valuation Ratios
P/E Ratio 50
Price to Sales 13.6
Price to Book 6.4
Price to Tangible Book
Price to Cash Flow 35.3
Price to Free Cash Flow 37.2
Growth Rates
Sales Growth Rate 13.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -33.3%
Cap. Spend. - 3 Yr. Gr. Rate -12.5%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 0%
Interest Coverage 0
Management Effectiveness
Return On Assets 12.9%
Ret/ On Assets - 3 Yr. Avg. 12.3%
Return On Total Capital 14.6%
Ret/ On T. Cap. - 3 Yr. Avg. 14%
Return On Equity 14.6%
Return On Equity - 3 Yr. Avg. 14%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 69.9%
Gross Margin - 3 Yr. Avg. 67.5%
EBITDA Margin 39.7%
EBITDA Margin - 3 Yr. Avg. 34.8%
Operating Margin 34.9%
Oper. Margin - 3 Yr. Avg. 30.5%
Pre-Tax Margin 36.3%
Pre-Tax Margin - 3 Yr. Avg. 31.3%
Net Profit Margin 27.2%
Net Profit Margin - 3 Yr. Avg. 23.9%
Effective Tax Rate 25%
Eff/ Tax Rate - 3 Yr. Avg. 23.7%
Payout Ratio 0%

ISRG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the ISRG stock intrinsic value calculation we used $2704 million for the last fiscal year's total revenue generated by Intuitive Surgical. The default revenue input number comes from 2016 income statement of Intuitive Surgical. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our ISRG stock valuation model: a) initial revenue growth rate of 11.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for ISRG is calculated based on our internal credit rating of Intuitive Surgical, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Intuitive Surgical.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of ISRG stock the variable cost ratio is equal to 35.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $807 million in the base year in the intrinsic value calculation for ISRG stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Intuitive Surgical.

Corporate tax rate of 27% is the nominal tax rate for Intuitive Surgical. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the ISRG stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for ISRG are equal to 18%.

Life of production assets of 7.5 years is the average useful life of capital assets used in Intuitive Surgical operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for ISRG is equal to 3.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5778 million for Intuitive Surgical - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 38.943 million for Intuitive Surgical is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Intuitive Surgical at the current share price and the inputted number of shares is $37.0 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
JNJ Johnson&Johnso 136.43 prem.  prem.
BVX Bovie Medical 2.44 prem.  prem.
SYK Stryker 141.12 prem.  prem.

COMPANY NEWS

▶ Da Vinci Sp Could Boost ISRG Stock   [Jun-23-17 07:51AM  Market Realist]
▶ A Robotics ETF Springs To Life   [Jun-22-17 08:22AM  Benzinga]
▶ 3 Stocks That Are Long Overdue for a Split   [Jun-21-17 02:43PM  Motley Fool]
▶ Which Companies Are Now Outperforming 95% Of All Stocks?   [Jun-20-17 04:27PM  Investor's Business Daily]
▶ Intuitive Surgical Rises As Rivals Fail To Crack DaVinci Code   [04:16PM  Investor's Business Daily]
▶ 3 Stocks with Huge Competitive Advantages   [Jun-19-17 12:48PM  Motley Fool]
▶ Roundtable: 1 Stock I'm Never Selling   [08:33AM  Motley Fool]
▶ How Risky Is Intuitive Surgical Inc.?   [08:04AM  Motley Fool]
▶ Biotech Movers: NewLink, Inovio, Juno   [09:20AM  TheStreet.com]
▶ Top Health Stocks to Buy Now   [Jun-06-17 03:43PM  Motley Fool]
▶ 5 Companies Reach Yearly Highs   [01:47PM  GuruFocus.com]
▶ Is Your Job Safe From the Rise of the Robots?   [Jun-04-17 09:24AM  Motley Fool]
▶ 3 Large-Cap Stocks for the Long Term   [May-30-17 06:40PM  Motley Fool]
▶ Could Medtronic Undercut This Robot Surgeon Maker In 2018?   [04:36PM  Investor's Business Daily]
▶ Biotech And Pharma Industry And Stock News   [03:36PM  Investor's Business Daily]
▶ Cracking the $1K club   [May-26-17 03:01PM  CNBC Videos]
▶ California robot repair facility gets DeSoto County incentives   [12:16PM  American City Business Journals]
▶ 3 Stocks That Look Just Like Amazon in 1997   [May-19-17 09:10AM  Motley Fool]
▶ Intuitive Surgical: A Cut Above   [May-18-17 12:47PM  TheStreet.com]
▶ 3 Stocks With Amazing Business Models   [May-14-17 11:06AM  Motley Fool]
▶ 3 Growth Stocks for Retirement   [May-10-17 09:34AM  Motley Fool]
▶ 1 Stock I Can't Wait to Buy on Sale   [May-09-17 10:27AM  Motley Fool]
▶ 4 Stocks Im Never Selling   [07:30AM  Motley Fool]
▶ I'm Already Up Over 200% on the Next Intuitive Surgical   [May-07-17 11:06AM  Motley Fool]
▶ Dow Industrials Lead; Can These 4 Big Cap Stocks Smash S&P 500?   [Apr-25-17 03:35PM  Investor's Business Daily]
▶ What Drove Intuitive Surgicals 1Q17 Growth?   [11:35AM  Market Realist]
▶ [$$] Bank of America Beats   [Apr-22-17 12:18AM  Barrons.com]
▶ What Happened in the Stock Market Today   [Apr-19-17 04:59PM  Motley Fool]
▶ Robotic Surgeon Maker Launches To Record High On Strong Q1   [04:10PM  Investor's Business Daily]
▶ Story Stocks from Briefing.com   [12:37PM  Briefing.com]
▶ Stocks Open Mainly Higher; Dow, S&P Battle Big Blue's Decline   [09:45AM  Investor's Business Daily]
▶ Intuitive Surgical, Inc. Is on an Impressive Run   [Apr-18-17 11:42PM  Motley Fool]
▶ Intuitive Surgical beats Street 1Q forecasts   [04:24PM  Associated Press]
▶ 3 Top Medical Device Stocks for Growth Investors   [Apr-09-17 06:41AM  Motley Fool]
Stock chart of ISRG Financial statements of ISRG Annual reports of ISRG
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.