ISRG is now overvalued and could go down -46%

Based on our analysis, Intuitive Surgical has received an overvalued rating of 1 out of 5 stars from Cashu. Several financial metrics suggest that the company's current valuation may not be justified when compared to its sector peers. Intuitive Surgical's Price-to-Earnings (PE) Ratio stands at 74.42, significantly higher than the sector average of 14.18. A high PE ratio indicates that investors are paying much more for each dollar of earnings compared to other companies in the sector, which raises concerns about whether the stock price is too high relative to its earnings capacity. The Price-to-Book (PB) Ratio for Intuitive Surgical is 11.25, while the sector average is just 2.71. This ratio compares a company's market value to its book value, and a high PB ratio may signal that the stock is overvalued, as investors are paying a premium over the company's net assets. Additionally, the company’s Return on Equity (ROE) stands at 14.05, whereas the sector average is markedly negative at -76.41. While a positive ROE suggests that the company is generating profit from its equity, the stark contrast with the sector indicates that this performance may not be sustained in the long term. In summary, while Intuitive Surgical shows strong profitability with a net profit margin of 27.81, the elevated valuation ratios compared to its sector raise red flags regarding its investment appeal. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.