TGM's two-stage DCF values Zimmer Biomet Holdings, Inc. (ZBH) between $61.54 and $153.67 depending on assumptions, with a base case of $96.99. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use)), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$95.09 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 | 1.2%/yr | 8.5% | $61.54 |
| Base case | 4.2%/yr | 7.5% | $96.99 |
| Optimistic | 7.2%/yr | 6.5% | $153.67 |
| Third-party model estimate (FMP) | independent reference · retrieved Aug 4, 2026 · assumptions not provided | $434.73 | |
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
$95.09
Market-Implied Growth
+3.9%/yr
vs +15.4% 5Y actual
Model Scenario Range
$61.54 – $153.67
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
$96.99
+2.0% vs $95.09
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 4.2%/yr FCF growth and 10-year horizon fixed. Green = above today's $95.09; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $136 | $158 | $186 | $226 | $286 |
| 6.5% | $102 | $114 | $130 | $151 | $179 |
| 7.5% | $78.40 | $86.86 | $96.99 | $109 | $125 |
| 8.5% | $61.84 | $67.77 | $74.68 | $82.84 | $92.62 |
| 9.5% | $49.44 | $53.79 | $58.76 | $64.48 | $71.14 |
