Intuitive Surgical (ISRG): Assessing Valuation After a 21% Share Price Climb

Intuitive Surgical (ISRG) stock has quietly climbed over the past month, with the share price up more than 21% over that period. Investors are weighing the company’s stable financial trends as they consider its future outlook.

See our latest analysis for Intuitive Surgical.

Looking at the bigger picture, Intuitive Surgical’s share price momentum has accelerated over the past month, outpacing much of its recent history and adding to a solid 6.4% total shareholder return over the last year. The strong move hints at renewed optimism around the company’s prospects and valuations as both short-term and long-term performance trends remain resilient.

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With shares rising and key growth metrics in focus, the question remains: is Intuitive Surgical currently trading below its true value, or is the market already factoring in the company’s future expansion potential?

Most Popular Narrative: 7.7% Undervalued

Intuitive Surgical’s latest fair value projection stands higher than the current share price, suggesting optimism around future performance according to the most widely tracked narrative. With the gap between fair value and last close creating fresh debate, what’s driving these bullish signals?

Strong global procedure growth (18% total, 17% da Vinci specifically), increasing installed base, and rising system utilization indicate that Intuitive is effectively capturing surging demand for minimally invasive, robotic-assisted surgeries as chronic disease rates rise and populations age globally. This directly supports long-term recurring revenue and margin stability.

Read the complete narrative.

Want to know which bold financial assumptions are fueling this upbeat valuation? Discover what’s behind these projections: aggressive growth, powerful margin stability, and a future profit multiple that could surprise even seasoned tech investors. Click to see the exact forecast figures pushing this price target higher.

Result: Fair Value of $594.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, challenges remain. Rising competition from low-cost suppliers and ongoing international budget pressures could hinder Intuitive Surgical's expansion and dampen earnings growth.

Find out about the key risks to this Intuitive Surgical narrative.

Another View: Market-Based Multiples Raise Red Flags

While fair value forecasts look promising, comparing Intuitive Surgical’s price-to-earnings ratio paints a riskier picture. The company currently trades at 70.8x earnings, much higher than the industry average of 29x, its peer average of 34.9x, and even well above its fair ratio of 39.7x. This steep premium means investors may be taking on significant valuation risk if earnings growth falls short or if the market simply normalizes. If the share price is already baking in a best-case scenario, what happens if the narrative shifts?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NasdaqGS:ISRG PE Ratio as at Nov 2025

Build Your Own Intuitive Surgical Narrative

If you see the numbers differently or want to dig into the details on your terms, building your own data-driven narrative takes just a few minutes. Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Intuitive Surgical.

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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.

Companies discussed in this article include ISRG.

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