What is Zimmer Biomet Holdings, Inc. (ZBH)'s PEG ratio?

Zimmer Biomet Holdings, Inc. (ZBH) has a PEG ratio of 0.65 (Potentially Undervalued), based on a PE ratio of 23.9 and expected EPS growth of 36.8% (3-Year EPS CAGR).

Is ZBH undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.65, Zimmer Biomet Holdings, Inc. (ZBH) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/ZBH.

Zimmer Biomet Holdings, Inc. (ZBH) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.65

PEG Ratio

0.65

Growth Rate Source

Limited Data Quality3-Year EPS CAGR

Current Price

$98.20

TTM EPS

$4.11

P/E Ratio

23.89

Growth Rate

36.8%

3-Year EPS CAGR

Sector

Healthcare

Medical - Devices

Calculated

8/18/2026

9:45:36 AM

Peer Comparison

Sample Size

5 peers

Industry Median PEG

0.74

25th Percentile

0.40

75th Percentile

2.32

ZBH PEG (0.65) vs Industry Median (0.74): 13% discount

Symbol	Company	PEG	P/E	Growth	vs ZBH
BSX	Boston Scientific Corporation	0.33	20.9	63.3%	-49%
UHS	Universal Health Services, Inc.	0.40	6.5	16.2%	-38%
IQV	IQVIA Holdings Inc.	0.74	29.9	40.2%	+15%
SYK	Stryker Corporation	2.32	34.4	14.8%	+258%
STE	STERIS plc	2.50	28.1	11.2%	+286%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.

Zimmer Biomet Holdings, Inc. (ZBH) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on ZBH

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Zimmer Biomet Holdings, Inc. (ZBH) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on ZBH

Compare with peers

Explore