Explain this page
Arphra AIPlain-English read on Zimmer Biomet Holdings, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Headline | |||||||||
| Market cap | — | — | — | — | $17.8B | — | — | — | — |
| Enterprise value | — | — | — | — | $24.73B | — | — | — | — |
| Multiples | |||||||||
| P / E | — | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | 3.00 | — | — | — | — |
| EV / FCF | — | — | — | — | 16.80 | — | — | — | — |
| Yields | |||||||||
| Earnings yield | — | — | — | — | +3.96% | — | — | — | — |
| Free cash flow yield | — | — | — | — | +8.27% | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Margins | |||||||||
| Gross margin | +71.29% | +70.90% | +71.82% | +71.46% | +61.62% | +69.80% | +67.99% | +69.79% | +66.82% |
| Operating margin | +12.60% | +10.03% | +17.28% | +16.74% | +16.55% | +16.89% | +16.73% | +17.16% | +17.16% |
| EBITDA margin | +24.10% | +21.54% | +30.03% | +29.31% | +26.94% | +28.10% | +28.70% | +27.98% | +28.99% |
| EBIT margin | +10.36% | +8.19% | +17.16% | +16.34% | +13.65% | +15.42% | +15.30% | +15.84% | +15.73% |
| Pre-tax margin | +7.31% | +5.81% | +14.43% | +13.50% | +10.09% | +12.99% | +12.90% | +12.56% | +12.46% |
| Net margin | +5.88% | +3.33% | +13.85% | +11.77% | +8.57% | +11.28% | +11.40% | +11.66% | +11.51% |
| Cost structure | |||||||||
| Cost of revenue / sales | +28.71% | +29.10% | +28.18% | +28.54% | +38.38% | +31.99% | +32.61% | +32.02% | +32.28% |
| R&D intensity | +6.38% | +5.85% | +6.20% | +5.70% | +5.57% | +5.97% | +5.78% | +5.81% | +5.80% |
| SG&A intensity | +41.65% | +39.79% | +38.39% | +38.16% | +39.50% | +38.95% | +39.73% | +37.53% | +38.91% |
| Effective tax rate | +10.72% | +27.83% | +3.95% | +12.68% | +15.13% | +10.12% | +10.53% | +10.77% | +10.51% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| Return on equity (ROE) | +3.17% | +1.92% | +8.20% | +7.24% | +5.55% | +6.91% | +6.89% | +7.00% | +7.08% |
| Return on assets (ROA) | +1.71% | +1.10% | +4.76% | +4.23% | +3.05% | +3.97% | +3.95% | +4.03% | +4.06% |
| Return on capital (ROC) | +4.36% | +3.93% | +7.00% | +6.88% | +6.74% | +6.86% | +6.74% | +6.91% | +7.01% |
| Return on invested capital (ROIC) | +2.03% | +1.31% | +5.61% | +4.84% | +3.49% | +4.58% | +4.60% | +4.70% | +4.70% |
| Asset turnover | +29.11% | +32.94% | +34.40% | +35.94% | +35.65% | +35.16% | +34.67% | +34.53% | +35.29% |
| DuPont · ROE decomposition | |||||||||
| Net margin | +5.88% | +3.33% | +13.85% | +11.77% | +8.57% | +11.28% | +11.40% | +11.66% | +11.51% |
| Asset turnover (× revenue / assets) | +29.11% | +32.94% | +34.40% | +35.94% | +35.65% | +35.16% | +34.67% | +34.53% | +35.29% |
| Equity multiplier (× assets / equity) | +185.19% | +175.16% | +172.24% | +171.25% | +181.74% | +174.14% | +174.34% | +173.91% | +174.25% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Turnover | |||||||||
| Asset turnover | 0.29 | 0.33 | 0.34 | 0.36 | 0.36 | 0.35 | 0.35 | 0.35 | 0.35 |
| Fixed-asset turnover | 3.72 | 3.71 | 3.59 | 3.75 | 3.73 | — | — | — | — |
| Inventory turnover | 0.91 | 0.94 | 0.87 | 0.98 | 1.38 | — | — | — | — |
| Receivables turnover | 5.42 | 5.02 | 5.13 | 5.19 | 4.83 | — | — | — | — |
| Payables turnover | 6.40 | 5.70 | 5.08 | 11.26 | — | — | — | — | — |
| Days outstanding | |||||||||
| Days sales outstanding (DSO) | 67.34 | 72.66 | 71.20 | 70.38 | 75.58 | — | — | — | — |
| Days inventory outstanding (DIO) | 399.93 | 388.08 | 417.79 | 372.35 | 264.13 | — | — | — | — |
| Days payables outstanding (DPO) | 57.07 | 64.00 | 71.92 | 32.42 | — | — | — | — | — |
| Cash conversion cycle | 410.20 | 396.74 | 417.07 | 410.32 | 339.70 | — | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 3.73 | 5.55 | 1.54 | 1.66 | 2.41 | 1.78 | 1.80 | 1.80 | 1.77 |
| FCF / Net income | 3.35 | 4.61 | 1.16 | 1.26 | 2.09 | 1.48 | 1.44 | 1.43 | 1.45 |
| FCF margin | +19.73% | +15.38% | +16.05% | +14.88% | +17.89% | +16.68% | +16.39% | +16.71% | +16.75% |
| OCF margin | +21.96% | +18.51% | +21.39% | +19.53% | +20.62% | +20.10% | +20.48% | +20.96% | +20.41% |
| CapEx / Revenue | +2.23% | +3.14% | +5.34% | +4.65% | +2.73% | +4.32% | +4.14% | +4.19% | +4.34% |
| CapEx / D&A | 0.16 | 0.23 | 0.41 | 0.36 | 0.21 | — | — | — | — |
| Stock-based comp / Revenue | +1.11% | +1.51% | +1.35% | +1.32% | 0.00% | — | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 1.91 | 1.10 | 4.88 | 4.43 | 3.55 | 8.49 | 9.02 | 9.65 | 10.43 |
| EPS · basic | 1.93 | 1.10 | 4.91 | 4.45 | 3.56 | 8.42 | 9.13 | 9.77 | 10.55 |
| Book value / share | 60.20 | 57.19 | 59.52 | 61.19 | 63.94 | 70.41 | 73.43 | 77.38 | 77.98 |
| Tangible BV / share | -8.49 | -7.69 | -5.70 | -5.26 | -9.86 | 70.41 | 73.43 | 77.38 | 77.98 |
| Sales / share | 32.45 | 33.00 | 35.26 | 37.66 | 41.43 | 43.11 | 44.38 | 46.47 | 47.95 |
| Operating CF / share | 7.13 | 6.11 | 7.54 | 7.35 | 8.54 | 8.66 | 9.09 | 9.74 | 9.78 |
| Free cash flow / share | 6.40 | 5.07 | 5.66 | 5.60 | 7.41 | 7.19 | 7.27 | 7.77 | 8.03 |
| Dividends / share | 0.95 | 0.96 | 0.96 | 0.96 | 0.96 | 1.12 | 1.14 | 1.15 | 1.18 |
| Payout ratio | +49.83% | +86.95% | +19.62% | +21.69% | +26.99% | +23.03% | +22.59% | +21.16% | +21.46% |
| Retention ratio | +50.17% | +13.05% | +80.38% | +78.31% | +73.01% | +76.97% | +77.41% | +78.84% | +78.54% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E | 8y CAGR |
|---|---|---|---|---|---|---|---|---|---|---|
| Top-line | ||||||||||
| Revenue · YoY | — | +1.65% | +6.55% | +3.85% | +7.20% | +3.87% | +3.56% | +3.75% | +4.48% | +4.35% |
| Gross profit · YoY | — | +1.10% | +7.93% | +3.33% | -7.57% | +17.66% | +0.88% | +6.49% | +0.04% | +3.51% |
| Profit | ||||||||||
| Operating income · YoY | — | -19.06% | +83.50% | +0.63% | +5.95% | +6.03% | +2.54% | +6.42% | +4.51% | +8.46% |
| EBITDA · YoY | — | -9.14% | +48.54% | +1.38% | -1.49% | +8.36% | +5.76% | +1.15% | +8.27% | +6.79% |
| Net income · YoY | — | -42.38% | +342.52% | -11.74% | -21.97% | +36.75% | +4.66% | +6.12% | +3.18% | +13.49% |
| Operating | ||||||||||
| EBIT · YoY | — | -19.66% | +123.21% | -1.10% | -10.44% | +17.32% | +2.81% | +7.37% | +3.75% | +9.94% |
| R&D · YoY | — | -6.84% | +12.98% | -4.64% | +4.82% | +11.29% | +0.22% | +4.43% | +4.23% | +3.11% |
| Per-share | ||||||||||
| EPS · diluted · YoY | — | -42.41% | +343.64% | -9.22% | -19.86% | +139.10% | +6.28% | +6.93% | +8.09% | +23.64% |
| EPS · basic · YoY | — | -43.01% | +346.36% | -9.37% | -20.00% | +136.49% | +8.46% | +7.00% | +7.94% | +23.65% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|---|
| Leverage | |||||||||
| Total debt | $7.07B | $5.7B | $5.77B | $6.2B | $7.52B | $7.1B | $7.31B | $7.5B | $7.9B |
| Net debt | $6.69B | $5.32B | $5.35B | $5.68B | $6.93B | $6.55B | $6.73B | $6.88B | $7.28B |
| Net debt / EBITDA | 4.07 | 3.56 | 2.41 | 2.52 | 3.12 | 2.73 | 2.65 | 2.68 | 2.61 |
| Debt / equity | 0.56 | 0.47 | 0.46 | 0.50 | 0.59 | 0.51 | 0.50 | 0.49 | 0.51 |
| Debt / assets | +30.14% | +27.04% | +26.83% | +29.04% | +32.56% | +29.20% | +28.60% | +28.18% | +29.04% |
| Equity / assets | +54.00% | +57.09% | +58.06% | +58.39% | +55.02% | +57.43% | +57.36% | +57.50% | +57.39% |
| Coverage | |||||||||
| EBITDA / interest expense | 7.89 | 9.07 | 11.03 | 10.33 | 7.57 | 9.06 | 9.65 | 9.47 | 9.27 |
| Operating income / interest | 4.13 | 4.23 | 6.35 | 5.90 | 4.65 | 5.45 | 5.62 | 5.80 | 5.49 |
| Interest expense | $208.4M | $164.8M | $201.2M | $218M | $292.8M | $265.19M | $263.33M | $271.52M | $300.23M |
| Liquidity | |||||||||
| Current ratio | 1.41 | 1.88 | 1.61 | 1.91 | 1.98 | — | — | — | — |
| Quick ratio | 0.47 | 0.75 | 0.65 | 0.82 | 0.89 | — | — | — | — |
| Cash ratio | 0.11 | 0.16 | 0.15 | 0.21 | 0.23 | — | — | — | — |
| Working capital | $1.42B | $2.07B | $1.75B | $2.22B | $2.54B | — | — | — | — |
| Working capital / revenue | +20.76% | +29.81% | +23.70% | +28.92% | +30.81% | — | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 |
|---|---|
| P / E | — |
| P / B | — |
| EV / EBITDA | — |
| EV / Sales | 3.00x |
| Earnings yield | 4.0% |
| FCF yield | 8.3% |
Returns
| Metric | FY 2025 |
|---|---|
| Gross margin | — |
| Operating margin | — |
| Net margin | — |
| ROE | 5.6% |
| ROA | 3.1% |
| ROIC | 5.5% |
Leverage & liquidity
| Metric | FY 2025 |
|---|---|
| Debt / equity | — |
| Net debt / EBITDA | 3.12 |
| Interest coverage | — |
| Current ratio | 1.98x |
| Quick ratio | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).