捷迈邦美

Zimmer Biomet Holdings Inc earns a 5-star quantitative star rating, indicating our belief that this share class offers a compelling opportunity for investors. The stock currently trades at a 22% discount to our quantitative fair value estimate of $114.74 per share, which is reinforced by this estimate's low uncertainty rating.

The firm's valuation metrics increase our estimated fair value. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. Reflecting the firm's valuation is its book value yield of 75.0%, which falls in the top 40% compared with global peers. The market price is low relative to the book (accounting) value of the company's equity, which contributes to our view that shares are undervalued.

The firm's profitability is an additional encouraging factor. Highly profitable companies are often more resilient in recessions and are likely to generate stronger future cash flows for shareholders. The firm's earnings yield of 9.6%, a core component of profitability, ranks in the top 30% globally. This suggests that it is generating substantial earnings relative to its share price, which further promotes our favorable price/fair value ratio.

The company earns a quantitative moat rating of wide, suggesting a strong ability to maintain superior profitability thanks to competitive advantages that could persist up to two decades. In addition, the company's moderate financial health score is decent and doesn't seriously concern us with regard to financial distress.