- We believe Intuitive’s revenues may start to decelerate growing at an average 5-year forward growth rate of 12.2% which is slower than the historical growth of 15.6%.
- Despite Intuitive obtaining economies of scale from lower R&D and SG&A costs in the future, we believe its EV/EBITDA multiple is still too high compared to the industry.
- Despite operating in a fast-growing market, we forecast its market share to decline to 80.22% by 2026 due to the expected increase in competition from larger healthcare equipment manufacturers.
- We valued the company using a DCF model and find the company fairly valued at current prices.
For further details see:
Intuitive Surgical: Decelerating Revenue Growth Already Priced In