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ISRG

Intuitive Surgical Inc – Surgical and Medical Instrument Manufacturing
Intuitive, headquartered in Sunnyvale, California, is a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery. Intuitive believes that minimally invasive care is life-enhancing care. Through ingenuity and intelligent technology, it expands the potential of physicians to heal without constraints.
Analysis Results
Intrinsic Value $79.70
Latest Price $223.30
Relative Value 180% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 18.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.88 1.68
2023 2.22 1.77
2024 2.62 1.87
2025 3.09 1.97
2026 3.65 2.08
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.7 billion. This corresponds to a present value of 19.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.38 billion. Adding in the terminal value gives a total present value of 28.6 billion.

There are presently 359.0 million outstanding shares, so the intrinsic value per share is 79.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 11,689,800,000
Current Cash 8,461,800,000
Current Liabilities 2,299,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 928,400,000
Change in NCWC 439,200,000
EBIT 3,642,000,000
Tax Provision 324,400,000
Depreciation and Amortization 620,400,000
Capital Expenditure -707,000,000
Unlevered Free Cash Flow 3,682,092,778
Current Assets 6,625,900,000
Current Cash 5,171,500,000
Current Liabilities 965,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 489,200,000
Change in NCWC 78,500,000
EBIT 1,049,800,000
Tax Provision 140,200,000
Depreciation and Amortization 276,200,000
Capital Expenditure -341,500,000
Unlevered Free Cash Flow 941,059,685
Current Assets 4,662,600,000
Current Cash 3,221,700,000
Current Liabilities 1,030,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 410,700,000
Change in NCWC -38,800,000
EBIT 1,374,500,000
Tax Provision 120,400,000
Depreciation and Amortization 203,000,000
Capital Expenditure -425,600,000
Unlevered Free Cash Flow 1,002,935,041
Current Assets 4,333,200,000
Current Cash 3,063,100,000
Current Liabilities 820,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 449,500,000
Change in NCWC 303,300,000
EBIT 1,199,400,000
Tax Provision 154,500,000
Depreciation and Amortization 122,800,000
Capital Expenditure -187,400,000
Unlevered Free Cash Flow 1,293,272,098
Current Assets 2,810,900,000
Current Cash 1,960,600,000
Current Liabilities 704,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 146,200,000
Change in NCWC 46,900,000
EBIT 1,054,600,000
Tax Provision 436,500,000
Depreciation and Amortization 99,100,000
Capital Expenditure -190,700,000
Unlevered Free Cash Flow 590,079,753
Current Assets 3,250,400,000
Current Cash 2,554,600,000
Current Liabilities 596,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 99,300,000
Change in NCWC -44,500,000
EBIT 945,200,000
Tax Provision 244,900,000
Depreciation and Amortization 92,100,000
Capital Expenditure -53,900,000
Unlevered Free Cash Flow 702,889,110
Current Assets 2,195,500,000
Current Cash 1,559,800,000
Current Liabilities 491,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 143,800,000
Change in NCWC 30,500,000
EBIT 740,000,000
Tax Provision 169,700,000
Depreciation and Amortization 89,500,000
Capital Expenditure -81,000,000
Unlevered Free Cash Flow 613,439,024
Current Assets 1,847,000,000
Current Cash 1,232,500,000
Current Liabilities 501,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 113,300,000
Change in NCWC -34,700,000
EBIT 544,800,000
Tax Provision 130,200,000
Depreciation and Amortization 74,400,000
Capital Expenditure -105,600,000
Unlevered Free Cash Flow 349,696,065
Current Assets 1,932,400,000
Current Cash 1,403,500,000
Current Liabilities 380,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 148,000,000
Change in NCWC -18,800,000
EBIT 852,500,000
Tax Provision 199,900,000
Depreciation and Amortization 67,300,000
Capital Expenditure -104,600,000
Unlevered Free Cash Flow 600,723,401
Current Assets 1,892,800,000
Current Cash 1,324,400,000
Current Liabilities 401,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 166,800,000
Change in NCWC 50,300,000
EBIT 878,100,000
Tax Provision 237,300,000
Depreciation and Amortization 57,800,000
Capital Expenditure -141,800,000
Unlevered Free Cash Flow 611,294,361

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