ISRG Intrinsic Value

ISRG

Intuitive Surgical Inc – Surgical Appliance and Supplies 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	$211.37
Latest Price	$246.29
Relative Value	17% overvalued

Share results:

Thoughts on this result? Let us know.

Cash Flow (Billions)

Analysis Parameters

New Ticker

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 12.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.7%, 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)
2023	1.63	1.58
2024	1.84	1.72
2025	2.07	1.88
2026	2.34	2.04
2027	2.63	2.23

Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 78.9 billion. This corresponds to a present value of 64.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.45 billion. Adding in the terminal value gives a total present value of 74.1 billion.

There are presently 350.0 million outstanding shares, so the intrinsic value per share is 211.37.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	6,253,000,000
Current Cash	4,122,200,000
Current Liabilities	1,422,100,000
Current Debt	0
Non-Cash Working Capital (NCWC)	708,700,000
Change in NCWC	244,500,000
EBIT	1,577,100,000
Tax Provision	262,400,000
Depreciation and Amortization	365,800,000
Capital Expenditure	-532,400,000
Unlevered Free Cash Flow	1,397,450,186

Current Assets	5,844,900,000
Current Cash	4,230,900,000
Current Liabilities	1,149,800,000
Current Debt	0
Non-Cash Working Capital (NCWC)	464,200,000
Change in NCWC	-25,000,000
EBIT	1,821,000,000
Tax Provision	162,200,000
Depreciation and Amortization	310,200,000
Capital Expenditure	-353,500,000
Unlevered Free Cash Flow	1,596,446,389

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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.