Stryker Corporation (SYK) DCF Valuation
TGM's two-stage DCF values Stryker Corporation (SYK) between $138.50 and $285.21 depending on assumptions, with a base case of $196.40. 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 (8.1%) reflects its beta.
What would today's price require?
$310.58 is justified only if free cash flow grows about +21.3% a year (fading to 2.5% long-run) at a 8.1% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 8.2%/yr | 9.1% | $138.50 |
| Base case | 11.2%/yr | 8.1% | $196.40 |
| Optimistic | 14.2%/yr | 7.1% | $285.21 |
| Analyst DCF (FMP) | independent reference — different model | $340.18 | |
Current Price
$310.58
Market-Implied Growth
+21.3%/yr
vs +11.0% 5Y actual
Model Scenario Range
$138.50 – $285.21
model output — not a price target
SYK DCF Fair Value Calculator
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
$279.71
-9.9% vs $310.58
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 11.2%/yr FCF growth and 10-year horizon fixed. Green = above today's $310.58; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 6.1% | $386 | $425 | $475 | $541 | $631 |
| 7.1% | $303 | $327 | $356 | $391 | $437 |
| 8.1% | $246 | $262 | $280 | $301 | $328 |
| 9.1% | $204 | $215 | $227 | $241 | $258 |
| 10.1% | $173 | $180 | $189 | $198 | $210 |
About Stryker Corporation
Stryker Corporation functions as a prominent medical technology enterprise, with its operations structured across two main divisions. The Orthopaedics and Spine segment specializes in providing implants for joint replacement procedures (including hips and knees), as well as solutions for trauma and extremities surgeries. This division also furnishes a comprehensive suite of spinal implant products, such as cervical, thoracolumbar, and interbody systems, utilized in addressing spinal injuries, deformities, and degenerative conditions. The MedSurg and Neurotechnology division offers an extensive array of products, encompassing advanced surgical equipment, surgical navigation systems, endoscopic and communication tools, patient handling devices, emergency medical apparatus, and critical care disposable items. This segment also deals in reprocessed and remanufactured medical devices, catering to various medical specialties. Furthermore, its neurotechnology offerings include devices for minimally invasive endovascular techniques, instruments for brain and open skull-based surgical interventions, and orthobiologic and biosurgery products like synthetic bone grafts and vertebral augmentation solutions. It also provides specialized minimally invasive products for treating acute ischemic and hemorrhagic strokes, alongside craniomaxillofacial implants, which include cranial, maxillofacial, and chest wall devices, in addition to dural substitutes and sealants. Stryker distributes its diverse portfolio to medical professionals, hospitals, and other healthcare institutions in approximately 75 countries, leveraging its network of company-owned subsidiaries, regional branches, and independent dealers and distributors. Established in 1941, Stryker Corporation is headquartered in Kalamazoo, Michigan.
- Sector
- Healthcare
- Industry
- Medical - Devices
- CEO
- Kevin A. Lobo