ISRG · Intrinsic value
Is Intuitive Surgical, Inc. (ISRG) overvalued or undervalued?
Intuitive Surgical, Inc. (ISRG) trades at the delayed market price of $426.70 a share. That price already implies revenue growth of more than 25%/yr. TickerWorth's fair value is $146.87 a share (191% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is ISRG overvalued?
- Fair value
- $146.87
- Market price
- $426.70
- Downside to fair value
- 65.6%
- Verdict
- 191% above fair value
Reverse DCF, on our cash-flow model rather than the fair value above: Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast.
What is ISRG's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Healthcare companies in US
Its strongest point: a profitable, high-quality business. Its weakest: trades above our estimate of what it's worth.
- Value · 22 of 100
Cheaper than 22% of Healthcare companies in US
- Price vs worth · 0 of 100
- Quality · 78 of 100
More profitable than 78% of Healthcare companies in US
- Financial health · 84 of 100
Financially stronger than 84% of Healthcare companies in US
- Growth · 58 of 100
Growing faster than 58% of Healthcare companies in US
- Momentum · 37 of 100
Outperformed 37% of Healthcare companies in US over the past year
Confidence: Medium confidence · Scored
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ISRG DCF valuation: what the price assumes
At a recent price of $426.70, Intuitive Surgical, Inc. (ISRG) trades 191% above TickerWorth's blended fair value of $146.87 per share. For this company that blend leans on peer multiples: our discounted-cash-flow model holds margins flat and fades growth toward a long-run rate, which systematically understates a business growing this fast, so its figure (about $109.75) is shown as a reference beside the range rather than blended into it. Our estimate sits below the market — read that as a statement about how the market prices ISRG against comparable companies, not as a finding that it is overvalued on cash flow. This is an educational model, not a price target or a recommendation.
Read the full reasoning
The valuation discounts Intuitive Surgical, Inc.'s projected free cash flows at a weighted-average cost of capital (WACC) of 12.1%, with a long-run terminal growth rate of 2.5%. About 66% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — ISRG would need sustained revenue growth of more than 25%/yr to justify today's price, against about 10.3% a year compounded in our base case. We don't quote a precise figure here, because past about 25% a year the reverse-DCF stops being informative: it solves for revenue growth alone, holding margins, capital intensity and the forecast horizon fixed, so a price well above our fair value has nowhere to go but growth. The honest reading is that the price implies growth this model can't reconcile — not that we forecast it.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, ISRG's modeled DCF value ranges from about $91.79 to $140.19 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Intuitive Surgical, Inc. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of ISRG's intrinsic value. Figures update as new filings and prices come in.
Every input behind ISRG's DCF
| Input | Value |
|---|---|
| Base-year revenueIntuitive Surgical, Inc. FY2025 10-K (accession 0001035267-26-000010): us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, FY2025 full year. | $10,064,700,000 |
| Base EBIT marginIntuitive Surgical, Inc. FY2025 10-K (accession 0001035267-26-000010): us-gaap:OperatingIncomeLoss 2,945,500,000 / revenue 10,064,700,000 = 29.27%, FY2025. | 29.3% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 17% → 14% → 10% → 7% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.47 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesIntuitive Surgical, Inc. FY2025 10-K (accession 0001035267-26-000010): WeightedAverageNumberOfDilutedSharesOutstanding = 362,700,000 shares, FY2025. | 363M |
| Market priceDelayed quote · as of 2026-10-19 14:01 UTC | $426.70 |
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What does Intuitive Surgical, Inc. do?
What does it do?
Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. It operates in the Medical Instruments & Supplies industry (Healthcare sector), headquartered in United States. The company employs roughly 17,021 people.
How does it make money?
The business turns $11.0B in annual revenue into profit. Out of every $100 of sales, about $34 is left as operating profit (operating margin of 33.6%), after a 67% gross margin on the products/services it sells. After all costs, taxes and interest, 28.4% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks solid: comfortably covers its short-term bills (5.0× current ratio), and is currently profitable.
Who at ISRG filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| WADORS PATRICIA L | SVP Chief Human Resources Offi | Option exercise | — | Form 4 for WADORS PATRICIA L (opens sec.gov in a new tab) | |
| WADORS PATRICIA L | SVP Chief Human Resources Offi | Shares withheld (tax) | $450,245.52 | Form 4 for WADORS PATRICIA L (opens sec.gov in a new tab) | |
| LOEB GARY | EVP & Chief Legal and Complian | Option exercise | — | Form 4 for LOEB GARY (opens sec.gov in a new tab) | |
| LOEB GARY | EVP & Chief Legal and Complian | Shares withheld (tax) | $549,452.16 | Form 4 for LOEB GARY (opens sec.gov in a new tab) | |
| Widman Fredrik | VP Corporate Controller | Option exercise | $43,482.24 | Form 4 for Widman Fredrik (opens sec.gov in a new tab) | |
| Widman Fredrik | VP Corporate Controller | Open-market sale | $204,444.24 | Form 4 for Widman Fredrik (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is ISRG's intrinsic value?
TickerWorth's blended fair value for Intuitive Surgical, Inc. (ISRG) is $146.87 per share, versus a market price of $426.70 (191% above fair value).
Is ISRG overvalued or undervalued?
Our cash-flow model understates a business growing this fast, so we don't call ISRG overvalued on it. Against a blend that leans on peer multiples, the price of $426.70 sits 191% above our estimate. This is an educational estimate, not advice.
What discount rate is used for ISRG?
A WACC of 12.1% and a terminal growth rate of 2.5%.
Is Intuitive Surgical stock undervalued?
TickerWorth's fair value for Intuitive Surgical, Inc. (ISRG) is $146.87 against a market price of $426.70. Our read: 191% above fair value. This is a model estimate, not investment advice.
Intuitive Surgical (ISRG) DCF valuation and fair value
Our fair value for Intuitive Surgical, Inc. (ISRG) is $146.87, built on a 12.1% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Intuitive Surgical stock?
Today's price implies revenue growth of more than 25%/yr. Above about 25% a year the reverse-DCF stops being informative. It solves for revenue growth alone — holding margins, capital intensity and the forecast horizon fixed — so a price well above our cash-flow model's value has nowhere to go but growth, and the solver returns a rate the model can't reconcile. Read it as "the price implies growth we can't justify", not as a forecast. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $426.70. A model estimate, not investment advice.
Intuitive Surgical (ISRG) insider trading
The most recent insider filing (SEC Form 4) for Intuitive Surgical, Inc. (ISRG): WADORS PATRICIA L, SVP Chief Human Resources Offi, option exercise on 2026-10-10. The latest filings are listed on this page. A disclosure, not a signal to trade.
How does ISRG compare with its peers?
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Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.