TGM's two-stage DCF values Stryker Corporation (SYK) between $135.54 and $281.81 depending on assumptions, with a base case of $193.04. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (8%) reflects its beta.
What would today's price require?
$325.70 is justified only if free cash flow grows about +21.9% a year (fading to 2.5% long-run) at a 8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 7.4%/yr | 9.0% | $135.54 |
| Base case | 10.4%/yr | 8.0% | $193.04 |
| Optimistic | 13.4%/yr | 7.0% | $281.81 |
| Third-party model estimate (FMP) | independent reference · retrieved Jul 31, 2026 · assumptions not provided | $316.79 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$325.70
Market-Implied Growth
+21.9%/yr
vs +11.0% 5Y actual
Model Scenario Range
$135.54 – $281.81
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for SYK (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $3.3B · 0.38B shares · net debt $12.0B
Estimated Fair Value
$193.04
-40.7% vs $325.70
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 10.4%/yr FCF growth and 10-year horizon fixed. Green = above today's $325.70; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.0% | $255 | $286 | $326 | $380 | $455 |
| 7.0% | $201 | $221 | $245 | $275 | $314 |
| 8.0% | $164 | $177 | $193 | $212 | $235 |
| 9.0% | $136 | $146 | $157 | $170 | $186 |
| 10.0% | $116 | $123 | $131 | $140 | $151 |
