Zimmer Biomet HoldingsXSWX:ZBH 65 ROE % is 7.46% as of Mar. 2026, which is 69% above its 10-year median of 4.42. GuruFocus rates XSWX:ZBH with a GF Score™ of 65/100 and a GF Value™ of CHF97.46 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 799 Medical Devices & Instruments companies, Zimmer Biomet Holdings ranks better than 61.2% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Devices subindustry, Zimmer Biomet Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zimmer Biomet Holdings ROE % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Zimmer Biomet Holdings's ROE % distribution charts can be found below:
* The bar in red indicates where Zimmer Biomet Holdings's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Zimmer Biomet Holdings (XSWX:ZBH) has a ROE % of 7.46% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zimmer Biomet Holdings and its competitors. This is 69% above median its historical median of 4.42. According to the industry distribution chart, Zimmer Biomet Holdings ranks #310 out of 799 companies in the Medical Devices & Instruments industry, placing it in the top 38.8%.
Is Zimmer Biomet Holdings' ROE % too high?
Zimmer Biomet Holdings' current ROE % of 7.46% is 69% above median its 10-year median of 4.42. The Medical Devices & Instruments industry median ROE % is 2.42. Zimmer Biomet Holdings' value of 7.46% is 208.3% above this industry median. Based on the distribution chart, Zimmer Biomet Holdings ranks #310 out of 799 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Zimmer Biomet Holdings has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zimmer Biomet Holdings' ROE % compare to PEN and GMED?
According to the Medical Devices & Instruments industry distribution chart, Zimmer Biomet Holdings ranks #310 out of 799 companies for ROE %. This puts Zimmer Biomet Holdings in the upper half of its industry. The industry median ROE % is 2.42. Zimmer Biomet Holdings' value of 7.46% is 208.3% above this benchmark. While the company's 10-year median is 4.42 vs. the industry median of 2.42, Zimmer Biomet Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Medical Devices & Instruments company?
The median ROE % among Medical Devices & Instruments companies is 2.42, based on 799 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zimmer Biomet Holdings's current ROE % of 7.46% is 208.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Zimmer Biomet Holdings and its competitors. For the Medical Devices & Instruments industry, the median ROE % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zimmer Biomet Holdings's current ROE % is 7.46%, which is 69% above median its own 10-year median of 4.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zimmer Biomet Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zimmer Biomet Holdings (XSWX:ZBH) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF97.46, compared to a current price of CHF70.00 — trading 28.2% below its estimated fair value. The current ROE % is 7.46%, which is 69% above median its 10-year median of 4.42 and 208.3% above the Medical Devices & Instruments industry median of 2.42. Zimmer Biomet Holdings' overall GF Score™ is 65/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Zimmer Biomet Holdings (XSWX:ZBH), the current ROE % is 7.46% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zimmer Biomet Holdings (XSWX:ZBH) Overvalued in 2026?
Based on GuruFocus' analysis, Zimmer Biomet Holdings stock appears to be undervalued.
The current stock price of CHF70.00 is trading 28.2% below its estimated GF Value™ of CHF97.46.
GuruFocus considers Zimmer Biomet Holdings to be Modestly Undervalued.
Key valuation signals for XSWX:ZBH:
ROE %: 7.46% (69% above median its 10-year median of 4.42)
GF Value™: CHF97.46 vs. price of CHF70.00 (28.2% below fair value)
Industry Position: 208.3% above the Medical Devices & Instruments median (#310 of 799)
No single metric tells the full story. See the XSWX:ZBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants as well as supplies and surgical equipment for orthopedic surgery. With the acquisitions of Centerpulse in 2003 and Biomet in 2015, Zimmer holds the leading share of the reconstructive market in the United States, Europe, and Japan. Roughly two-thirds of total revenue is derived from sales of large joints; another fourth comes from extremities, trauma, sports medicine, and related surgical products. The firm spun out its dental and spine businesses in 2022.
65GF Score
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