Intuitive Surgical, Inc. (ISRG) DCF Valuation
Transparent DCF models put Intuitive Surgical, Inc. (ISRG)'s fair value in a range of $72.71 – $115.56 — the low end is TGM's conservative base case (5% FCF growth, 10% discount), the high end the analyst consensus (FMP). Today's price of $426.61 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $426.61, the market is pricing in roughly +30.9%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +16.6%. The price is betting on acceleration above its track record.
Current Price
$426.61
Fair-Value Range
$72.71 – $115.56
Market-Implied Growth
+30.9%/yr
vs +16.6% 5Y actual
ISRG DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $1.4B · 0.35B shares · net cash $3.2B
Estimated Fair Value
$72.71
-83.0% vs $426.61
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $426.61; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $88.16 | $92.22 | $97.02 | $103 | $110 |
| 9.0% | $77.00 | $79.77 | $82.98 | $86.71 | $91.12 |
| 10.0% | $68.50 | $70.47 | $72.71 | $75.26 | $78.21 |
| 11.0% | $61.81 | $63.26 | $64.88 | $66.69 | $68.76 |
| 12.0% | $56.43 | $57.51 | $58.71 | $60.05 | $61.54 |
About Intuitive Surgical, Inc.
Intuitive Surgical, Inc. is a leading medical technology firm dedicated to advancing patient care by developing, producing, and commercializing sophisticated tools. These innovations empower medical professionals to deliver superior, accessible, and less-invasive treatment options to patients both within the United States and across international markets. Its flagship offering, the da Vinci Surgical System, facilitates intricate operations through a minimally disruptive approach. Expanding beyond surgical applications, the company also provides the Ion endoluminal system, designed for diagnostic interventions like minimally invasive lung biopsies. Complementing its primary systems, Intuitive Surgical supplies a comprehensive array of instruments, including stapling tools, energy devices, and essential core components. Furthermore, it offers structured training programs to ensure proficient use of its technology, alongside extensive customer support services encompassing installation, repairs, and ongoing maintenance. The firm also integrates digital capabilities to deliver unified, connected solutions that optimize hospital performance through actionable insights. Established in 1995, Intuitive Surgical maintains its corporate headquarters in Sunnyvale, California.
- Sector
- Healthcare
- Industry
- Medical - Devices
- CEO
- David J. Rosa