What is Intuitive Surgical, Inc. (ISRG) DCF Fair Value and Intrinsic Value in 2026?

Intuitive Surgical, Inc. (ISRG) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Intuitive Surgical, Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Intuitive Surgical, Inc. operates in the Healthcare sector (Medical Instruments & Supplies) with an economic moat rating of WIDE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Intuitive Surgical, Inc.'s financial health rating and Piotroski F-Score?

Intuitive Surgical, Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Intuitive Surgical, Inc. (ISRG) for quarterly SEC filing thesis breaks?

LocalAlpha audits Intuitive Surgical, Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksISRG

ISRG

Intuitive Surgical, Inc.Healthcare / Medical Instruments & SuppliesINTACT

Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. It offers the da Vinci Surgical System that enables surgical procedures using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic endoluminal procedures enabling minimally invasive biopsies in the lung. The company also provides a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems; progressive learning pathways to support the use of its technology; infrastructure of customer service and support specialists, a complement of services to its customers, including installation, repair, maintenance, 24/7 technical support, and proactive system health monitoring; and integrated digital capabilities providing connected offerings, streamlining performance for hospitals with program-enhancing insights. It sells its products through direct sales organizations, such as capital and clinical sales teams. Intuitive Surgical, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.

Share Price

$369.15

52W: $328.57 - $603.88

DCF Fair Value

$236.89

-55.8% Premium

Thesis Hub

P/E (TTM)

42.3x

ROIC

25.2%

Operating Margin

33.6%

FCF Yield

Debt / Equity

0.15x

Piotroski Score

7/9

Altman Z-Score

2.96

Market Cap

$132.3B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($236.89)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$236.89

MOS Buy Target (-25%)

$177.67

Valuation Overlays: DCF Fair Value ($236.89) 25% MOS Buy Target ($177.67) Revised Graham ($269.38) Graham Number ($100.36)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$369.15

DCF Fair Value

$237.03

-55.7% Premium

Starting Free Cash Flow ($M)$2,615M

$100M$2,615M (Reported)$50,000M

Stage 1 Growth (Years 1-5)16.8%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)-$5,200M (Net Cash)

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$32.5B

PV of Terminal Value

$47.2B

Implied Enterprise Value

$79.7B

Implied Equity Value

$84.9B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$3,054	$3,567	$4,167	$4,867	$5,684	$5,940	$6,208	$6,487	$6,779	$7,084
Present Value (PV)	$2,802	$3,003	$3,218	$3,448	$3,694	$3,542	$3,396	$3,256	$3,121	$2,992

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-267.8% Premium

$100.36

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $8.72BVPS: $51.34

Revised Graham Formula-37% Premium

$269.38

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings1.9% Yield

$6.94 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $2.5BYield: 1.9%

Reverse DCF: Market Growth Expectation

HIGH BARRIER

17.9% CAGR (Next 10 Yrs)

At the current price of $369.15, the market is assuming the business will compound Free Cash Flow at 17.9% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

ℹ Fair expectations: Requires steady execution.

Autonomous Thesis Underwriting

Surveil ISRG with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Intuitive Surgical, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 33.6% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Intuitive Surgical, Inc. (ISRG) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Intuitive Surgical, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Intuitive Surgical, Inc. has an estimated DCF intrinsic fair value of $236.89 per share compared to its current market price of $369.15. This represents an estimated 55.8% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $100.36.