Stryker (SYK) is drawing fresh attention after launching its Mako RPS handheld robotic system in the U.S. for total knee replacements, extending the Mako portfolio beyond traditional robotic arm platforms.

The Mako RPS launch comes as Stryker’s share price has recently picked up, with a 1 day share price return of 3.54% and a 30 day share price return of 5.28%, even though the year to date share price return is down 5.15% and the 1 year total shareholder return is down 17.33%. The 3 year and 5 year total shareholder returns of 20.16% and 28.39% point to stronger longer term compounding.

If this kind of robotics story has your attention, it could be a good moment to see what else is shaping the sector through our 34 robotics and automation stocks

Stryker’s shares now sit at a meaningful discount to both the stated fair value estimate and analyst targets after the Mako RPS driven bump. Is the market sensibly cautious, or too slow to reprice the story?

Most Popular Narrative: 15% Undervalued

The most followed narrative currently values Stryker at $386.80 per share, versus the last close of $330.25, framing the recent Mako RPS excitement within a broader long term thesis.

Robust innovation pipeline, particularly in robotic-assisted surgery (Mako platform) and next-generation devices, is driving greater market share, higher average selling prices, and service revenues, which is expected to accelerate both revenue and margin expansion over time.

Want to see what underpins that higher fair value for Stryker? The narrative leans on steady revenue gains, rising margins, and a richer earnings multiple. The exact mix of those drivers might surprise you.

Result: Fair Value of $386.80 (UNDERVALUED)

However, Stryker’s story could change quickly if prolonged regulatory delays in Europe or ongoing supply chain disruptions start to bite harder than analysts currently model.

Another View: What Stryker’s P/E Is Saying

The DCF work suggests Stryker is undervalued, yet the current P/E of 37.9x sits well above the US Medical Equipment industry at 26.7x, the peer average at 28x, and even the 34.6x fair ratio estimate. That premium could signal quality, or it could mean less room for error.

Before leaning on any single approach, it is worth stress testing the DCF assumptions and comparing them to other scenarios in the SWS DCF model, especially if growth or margins end up tracking differently to consensus Look into how the SWS DCF model arrives at its fair value.

Next Steps

If the mix of optimism and concern around Stryker feels finely balanced, take a closer look at the data now and shape your own view with the 3 key rewards and 2 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.