ZBH Zimmer Biomet
too hard · 56
Owner-earnings value$115.32
Price$89.14
Margin of safety
+29.4%
Quality gate · 56/100
⚠ sub-hurdle returns (median roic 5% < 9%)
Median ROIC5.2%
Gross margin69.9%
Net debt / EBITDA3.0x
FCF conversion168%
Share count / yr-2.2%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 1.40B |
| Owner-earnings yield | 8.2% |
| Free-cash-flow yield | 8.2% |
| Growth used (normalized) | 0.9% |
| Market-implied growth (reverse DCF) | -5.1% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.0% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 1.41B | 0.9% | 1.30B |
| 2 | 1.43B | 1.1% | 1.20B |
| 3 | 1.45B | 1.3% | 1.12B |
| 4 | 1.47B | 1.6% | 1.04B |
| 5 | 1.50B | 1.8% | 973.95M |
| 6 | 1.53B | 2.1% | 911.89M |
| 7 | 1.56B | 2.3% | 855.76M |
| 8 | 1.60B | 2.5% | 804.94M |
| 9 | 1.65B | 2.8% | 758.88M |
| 10 | 1.70B | 3.0% | 717.11M |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~-5%/yr owner-earnings growth over 10y (reverse DCF); model credits 1%. Capped at market + 6pts.