Is Stryker Corporation (SYK) Fairly Valued?
Stryker Corporation valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of July 9, 2026.
By TGMCharts Research · Data as of · Updated
Stryker Corporation trades at 37.86x trailing earnings, aligning closely with the analyst DCF (FMP) reference of $327. This pricing places the burden of proof on whether the underlying growth metrics and operating efficiency support such a premium.
The valuation profile is defined by the interaction of price, earnings, and operating efficiency. A five-year revenue CAGR of 11.42% and five-year EPS CAGR of 14.79% provide historical backing, while the net margin of 13.21% serves as the baseline for assessing whether current pricing is sustainable or stretched.
- Stryker Corporation closed at $330 on July 9, 2026.
- Trailing P/E is 37.86x and price-to-sales is 5.00x.
- Analyst DCF (FMP) is $327 with margin of safety at -0.17%.
- Five-year revenue CAGR is 11.42% and five-year EPS CAGR is 14.79%.
- Earnings yield is 2.64% and net margin is 13.21%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Evaluating the Price Multiple Against Fundamentals
Stryker Corporation presents an analytical framework where the core question centers on whether the current market valuation matches the underlying operational performance. With the stock closing at $330 on July 9, 2026, the equity commands a trailing price-to-earnings multiple of 37.86x. This pricing places the market quote in close proximity to the third-party analyst-DCF (FMP) fair value reference, resulting in a margin of safety of -0.17%.
Assessing this valuation requires looking beyond any single ratio. This analysis examines the relationship between the trailing earnings multiple, the price-to-sales ratio, historical growth rates, and profit margins. When these fundamental lines move in tandem, the valuation framework remains cohesive; any divergence between price expansion and operational growth suggests a more cautious outlook.
Current Market Multiples and Owner Yields
The market currently prices the equity at a price-to-sales ratio of 5.00x, which corresponds to a trailing earnings yield of 2.64%. This yield represents the cash flow generation relative to the market capitalization, serving as a direct counterweight to the headline price-to-earnings multiple. The accompanying chart exhibits place these pricing multiples into historical context, allowing for a comparison of what investors are paying relative to historical ranges.
SYK P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 37.86x as of July 9, 2026.
A P/E ratio of 37.86x has to be judged against the company's five-year EPS CAGR of 14.79%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
SYK price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 5.00x.
Price-to-sales at 5.00x is most useful beside net margin of 13.21%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Analyst DCF Reference and Margin of Safety
The independent analyst-DCF (FMP) model establishes a reference price of $327, indicating that the market price of $330 is roughly in line with this valuation estimate. The resulting margin of safety stands at -0.17%. This calculation is a third-party reference point rather than a proprietary model output, and it should be evaluated alongside the broader range of valuation scenarios available on the platform.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
SYK earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 2.64%.
The earnings yield of 2.64% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Historical Revenue and EPS Growth Trends
To determine if the current multiple is supported by business expansion, we examine the long-term growth trajectory of the enterprise. Over the past five years, the company achieved a revenue compound annual growth rate (CAGR) of 11.42%, while the five-year EPS CAGR reached 14.79%. These positive growth rates demonstrate that the business has expanded its top and bottom lines, providing a fundamental foundation for the trailing earnings multiple.
SYK revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 11.42%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 11.42% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
SYK EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: 14.79%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of 14.79% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Operating Efficiency and Sales Multiple Alignment
Profitability metrics act as the critical link translating top-line sales into shareholder value. The company reports a trailing net margin of 13.21% alongside its price-to-sales ratio of 5.00x. A higher sales multiple is typically more sustainable when profit margins are robust and stable. If margins face downward pressure, the valuation multiple would require a corresponding adjustment to remain aligned with historical averages.
SYK net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 13.21%. The bars below are annual fiscal years.
Net margin of 13.21% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
The Core Arguments for and Against the Valuation
The constructive case for the current valuation rests on the consistent expansion of the business, highlighted by positive revenue and EPS growth alongside a stable net margin of 13.21%. Conversely, the skeptical view points out that a trailing multiple of 37.86x leaves little room for operational disruption. If top-line growth moderates or if margins contract from current levels, the tight margin of safety relative to the analyst-DCF reference could expose the stock to multiple compression.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 11.42% and five-year EPS CAGR of 14.79% support the business case.
- Net margin of 13.21% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 37.86x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at -0.17% should change the valuation read if it deteriorates after refresh.
Key Metrics to Monitor for a Shift in Outlook
The analytical view of the company would change if there is a meaningful departure from the analyst-DCF (FMP) reference price of $327, which would alter the margin of safety. Additionally, any deceleration in the five-year EPS growth trend or a downward drift in the net margin from its current level of 13.21% would weaken the fundamental support for the current earnings multiple.
Synthesizing the Fundamental Evidence
In conclusion, the valuation of Stryker Corporation relies on the continued alignment of its market multiple, the analyst-DCF reference, and its operational execution. For the current valuation framework to remain intact, the company must maintain its historical growth trajectory and operating efficiency. This analysis is based on verified financial data from public filings and is intended for general research purposes rather than personalized financial advice.
FAQ
Is SYK fairly valued?
Stryker Corporation trades at 37.86x trailing earnings with an analyst-DCF (FMP) margin of safety of -0.17%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 11.42% and five-year EPS CAGR of 14.79%.
What valuation metric matters most for SYK?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this SYK valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of July 9, 2026.
What would change our mind
- A material move away from the analyst-DCF (FMP) reference of $327.
- A break in five-year EPS support, currently 14.79%.
- Margin quality drifting away from the latest net margin of 13.21%.
The bottom line
Stryker Corporation valuation research note from TGMCharts Research, grounded in precomputed fundamentals, chart exhibits, and a frozen claim ledger.
Read next: SYK fundamentalsContinue with Stryker Corporation's full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-05-11 · period 2026-03-31 · SEC EDGAR source
- “Research, Development and Engineering Expenses Research, development and engineering expenses increased $8 or 2.0% in the three months 2026.”
- “Selling, General and Administrative Expenses Selling, general and administrative expenses decreased $19 or 0.8% in the three months 2026.”
- “Excluding the impact of acquisitions and divestitures, sales grew 1.0% in constant currency.”
- “Excluding the 1.4% impact of acquisitions and divestitures, net sales in constant currency increased by 2.1% from increased unit volume and 0.3% due to higher prices.”
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Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.