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Stryker Corporation (SYK) Stock Analysis

Score B

Compounder · Grade B · Bearish

Healthcare · Medical Devices

$317.26

Fair Value

$467.83

+47.5%

Conviction

10/10

Quality

B

Classification

Compounder

Investment Thesis

Price is above modeled value range. Quality supports holding but not attractive for new positions.

No strong signal in either direction.

For New Investors

Price above modeled value range

For Current Holders

Quantitative score: neutral

Buy if

  • Price drops 15-20% (improves asymmetry)
  • Bull scenario catalysts materialize
  • Market-wide correction creates opportunity

Sell if

  • Bear scenario triggers occur
  • Quality metrics deteriorate (ROIC declining)
  • Better alternatives emerge

Valuation

Fair Value estimate: $467.83 (+47.5%). Significantly undervalued.

PEG-Based EPS

$571.07

FCF DCF Model

$542.32

EV/EBITDA

$335.86

Blended Fair Value

$467.83

Confidence

High

Methods

PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA

Quality Analysis

B

82/120 points

Investable

ROE (3Y Avg)

15.3%

ROIC-WACC Spread

2.9%

D/E Ratio

0.7x

Current Ratio

1.9x

Interest Coverage

8x

FCF Positive Years

3/3

Quality Flags

  • ROIC spread: 2.9pp (got 7/25 pts)
  • Leverage: D/E 0.7x (10/15 pts)

Market Sentiment

Wall Street Consensus

$389.50

+22.8% Upside

26 analysts

Range: $315.00$465.00

Rating: Buy

Our model is slightly more cautious than Wall Street.

Trend & Technical

Bearish

Price ($317.42) is 11.2% below SMA 200 ($357.35). Bearish trend. Caution on entry.

Technical Score63/100

Tech Score 63/100 — Neutral technical picture. Mixed signals across indicators.

Risk & Reward

Asymmetry Ratio

5.79:1

Expected Return

+31.4%

Bull Upside

+58.0%

Bear Downside

-10.0%

Excellent asymmetry: 5.79:1 ratio. Upside significantly outweighs downside.

Verdict: Very Favorable

Scenario Analysis

Bear

Base

Bull

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Frequently Asked Questions

What is the fair value of SYK?

Based on our multi-method conviction analysis, the estimated fair value of Stryker Corporation (SYK) is $467.83. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is high.

Is SYK a buy, sell, or hold?

SYK currently has a HOLD rating with a conviction score of 10/10. Price is above modeled value range. Quality supports holding but not attractive for new positions. Price above modeled value range.

Is SYK a high-quality stock?

Stryker Corporation has a quality grade of B (82/120 points), rated as Investable. Key metrics include ROE of 15.3%, ROIC-WACC spread of 2.9%, and D/E ratio of 0.7x.

What type of stock is SYK?

SYK is classified as a "compounder" in our framework. High P/E: 36.7x, Low dividend (reinvesting): 1.1%, Large cap: $121.6B, Moderate growth: 10.4%, Dividend paying: 1.1%

What do Wall Street analysts say about SYK?

26 Wall Street analysts have a consensus price target of $389.50 for SYK, representing +22.8% upside. Targets range from $315.00 to $465.00. The consensus recommendation is "Buy". Our model is slightly more cautious than Wall Street.

What are the risks of investing in SYK?

The risk/reward asymmetry ratio for SYK is 5.79:1, rated as Very Favorable. Excellent asymmetry: 5.79:1 ratio. Upside significantly outweighs downside. The expected return is +31.4%, with bull case upside of +58.0% and bear case downside of -10.0%.

What is the current trend for SYK?

SYK is in a bearish trend. Price ($317.42) is 11.2% below SMA 200 ($357.35). Bearish trend. Caution on entry. The technical score is 63/100.

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Last updated: May 19, 2026 · Framework version 3.7

This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.