TGM's two-stage DCF values Zimmer Biomet Holdings, Inc. (ZBH) between $63.63 and $157.81 depending on assumptions, with a base case of $99.87. 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 (7.5%) reflects its beta.
What would today's price require?
$95.36 is justified only if free cash flow grows about +3.9% a year (fading to 2.5% long-run) at a 7.5% required return — slower than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 1.7%/yr | 8.5% | $63.63 |
| Base case | 4.7%/yr | 7.5% | $99.87 |
| Optimistic | 7.7%/yr | 6.5% | $157.81 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 10, 2026 · assumptions not provided | $390.80 | |
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
$95.36
Market-Implied Growth
+3.9%/yr
vs +6.5% 5Y actual
Model Scenario Range
$63.63 – $157.81
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 ZBH (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 $1.2B · 0.19B shares · net debt $6.9B
Estimated Fair Value
$99.87
+4.7% vs $95.36
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 4.7%/yr FCF growth and 10-year horizon fixed. Green = above today's $95.36; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $140 | $162 | $191 | $232 | $293 |
| 6.5% | $105 | $118 | $134 | $155 | $183 |
| 7.5% | $80.82 | $89.49 | $99.87 | $113 | $128 |
| 8.5% | $63.88 | $69.95 | $77.02 | $85.38 | $95.38 |
| 9.5% | $51.18 | $55.63 | $60.72 | $66.57 | $73.40 |
