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Is this Large Market Cap Stock target price reasonable for Zimmer Biomet Holdings, Inc. (NYSE:ZBH)?

The company in question is, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) currently with a stock price of 127.15 (0.19% today). The market cap for Zimmer Biomet Holdings, Inc. is 25384.23, and is in the sector Healthcare, and Medical Appliances & Equipment industry. The target price for Zimmer Biomet Holdings, Inc. is 140.85. Currently Zimmer Biomet Holdings, Inc. is trading with a P/E of 114.34, and a forward P/E of 14.41. Average volume for Zimmer Biomet Holdings, Inc. is 1214.93 and so far today it is 1305500.

Performance in the last year for Zimmer Biomet Holdings, Inc. has been 30.95%. For EPS growth, Zimmer Biomet Holdings, Inc. has seen a growth of -81.50%, and is looking to grow in the next year to 10.70%. More long term stats show that EPS growth has been -23.60% over the last five years and could be 11.17% for the next five years. Zimmer Biomet Holdings, Inc. has seen sales growth quarter over quarter at -16.00%, with EPS growth quarter over quarter at *TBA. The 20-day simple moving average is -0.94%, with the 200-day simple moving average coming to 10.70%.

Since the IPO date for Zimmer Biomet Holdings, Inc. on the 7/25/2001, Zimmer Biomet Holdings, Inc. has seen performance year to date to be 24.72%. With Zimmer Biomet Holdings, Inc. trading at 127.15, the dividend yield is 0.76%, and the EPS is 1.11.

So could Zimmer Biomet Holdings, Inc., be undervalued? Well as said before P/E is 114.34. The PEG is 10.24, P/S is 3.37 and the P/B is at 2.66. The P/cash is 26, with P/free cash flow at 48.84.

Zimmer Biomet Holdings, Inc. ability to deal with debt shows that the current ratio is 2.4, and the quick ratio is 1.5. This is with long term debt/equity at 1.1, and total debt/equity at 1.16.

In terms of margins, Zimmer Biomet Holdings, Inc. has a gross margin of 66.80%, an operating margin of 10.30% and a profit margin of 3.00%.Payout ratio for Zimmer Biomet Holdings, Inc. is 82.00%. Return on assets come to 0.90% with return on investment coming to 2.10%.

Insider ownership for Zimmer Biomet Holdings, Inc., is at 15.00% and institutional ownership comes to 90.40%. Outstanding shares are at 199.64. While shares float is 199.25. The float short is currently 2.37%, and short ratio is 3.89.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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