SYK
Stryker Corporation
Hybrid Industrial
★ Quality 76/100Price today
$312.05
what the market pays
Worth
$171.73
calculated cycle value
Price is 82% above its value
charlieapp.co
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Manufacturing + technology
$199.80
per share
How it's calculated
Stryker Corporation — assistant high road (2026-06-07). Review note.
Net cash in the bank
cash minus financial debt, per share
Total calculated value
business + cash
How many times the cash flow
Hybrid Industrial · vs 28 peers
You pay 30.7x times this business's cash flow; its sector median is 35.5x.
41% above what Charlie thinks it's worth (18x) — you're overpaying, sector or no sector.
Why Overvalued?
Its free cash flow is $11.08/share × 18.0x multiplier minus $28.07 in negative net cash = $171.73 in intrinsic value. Today's price of $312.05 is 45% above the calculated value — the market is paying a premium over what the model sees as fair.
The price is 82% above the calculated value. You're paying more than it's worth.
Buying here lowers your expected return and wipes out the safety margin.
The next reasonable entry zone starts at $163.14.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$137.38
-20% off Value
🟡 Discounted
≤$163.14
-5% off Value
🔴 Today
$312.05
-45% Valor
Overvalued
The market prices it too high versus what the business makes. Patience pays off here.
“Time is the friend of the wonderful company, the enemy of the mediocre.”
— Warren Buffett
Model updated · July 2026
The business
Mako is the Gillette of the operating room: give away the razor, sell the blades.
Stryker makes medical devices: orthopedic implants (hip, knee), surgical equipment, neurotechnology and hospital beds. It earns by selling hardware to hospitals and, increasingly, recurring instruments and consumables around its Mako surgical robot. Revenue 2025: $25.1B with a 64% gross margin.
The Mako robot creates real switching costs: once the hospital and surgeon adopt it, Stryker's implants and consumables sell themselves. The relationship with the surgeon, trained on their system, is hard to break. Not a monopoly, but the installed base and the brand carry weight.
Revenue history
From $17.1B to $25.1B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $25.1B · FY2025
Of every $100 in sales, $87 goes to costs and operations; $13 is left as net profit (13% margin).
Catalysts and risks
Expansion of Mako's installed base: every robot placed drags along years of recurring high-margin implants.
Demographic growth: an aging population structurally lifts the volume of hip and knee surgeries through 2030+.
FCF of $4.3B in 2025 funds bolt-on acquisitions, the company's historical growth engine.
Debt of $14.9B against cash of $4.0B; the appetite for acquisitions has a limit if rates rise.
Pricing pressure from hospitals and insurers on devices, squeezing the 64% margin.
Direct competition from Medtronic, J&J and Zimmer in every category; no product is irreplaceable.
Charlie's note
“An honest business selling picks and shovels to a population that keeps aging. At 18 times FCF they aren't giving anything away; you pay for quality at a fair price, which is fine if you have patience.”
Analysis · June 2026
So when would be a good price for Stryker Corporation?
By our calculation, not yet. We will email you the day it drops to $163.14 — so you do not have to keep checking.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.