Zimmer Biomet Holdings Inc
ZBHWithin bandExpectations · demandingHeld by 8 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +7.2%
- Net margin
- 8.6%
- ROE
- 5.6%
- FCF margin
- 17.9%
Valuation · value band
In fair-value range
Zero-growth floor
$32
Central IV
$43
Optimistic top
$101
Zimmer Biomet Holdings Inc (ZBH): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $32–$101 / sh. Today’s price sits inside both (price $101 as of 2026-08-26).
The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.
Revenue growth 0% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 12.5% · Zero-growth downside $32
Price as of 2026-08-26 · yahoo · DGS10 4.7% @ 2026-08-26.
Method & numbers
Model cautions
- The two methods’ midpoints differ materially — growth assumptions warrant review (over 20%).
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
Owner-earnings DCF $38.22 – $47.99 · Greenwald $64.19 – $101.42 (neutral $83.79) · zero-growth base $48.69 · reproduction $28.18
Moat Franchise (moat) · terminal value 31% of present value · owner-earnings yield 5% vs 10Y 4.7%.
Graham earnings-power value (normalized NOPAT)$32.12 – $47.41 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 133% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back).
Buffett owner-earnings value$41.17 – $48.69 / sh
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 10.9–12.9% band (9–11% base + 1.9pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 133% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 1.9pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 6.9 years of owner earnings, adding 1.9pp of cost-of-equity risk premium.
Asset floor: Reproduction value = tangible net assets + acquired-intangible reset proxy, ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise (no R&D history to capitalize).
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Assumes a narrow moat · competitive-advantage period ≈ 10 years.
Growth value: if the moat holds for 10 yr at ROIIC ≈ 89%, $15.50–$52.72 / sh (neutral $35.10). Conservative, not a forecast.
Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 12% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Baseline 9%–11%, net debt ≈ 6.9 years of owner earnings → +1.9pp cost-of-equity premium → effective 10.9%–12.9%.
Owner-earnings DCF: growth g₁ 0% · OE FY TTM 2026-06-30, 2024, 2023, 2022, 2021 · Discount band: 11.10%–13.94% (DGS10 +4.5% to a 12% strict end, each +1.94pp for leverage premium, as of 2026-08-26). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 65%.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
What the price is betting
Today's price pencils in about 17.4% a year in owner-earnings for the next few years. Revenue actually grew 2.3% a year.
The market wants it well ahead of its own track record.
SEC 13F · holders
Superinvestors Holding This Security
8 holders · $3.33B combined · this quarter +0 opened / -0 exited
- Value$2.08BWeight (prev→now)1.2% → 1.1% ▼
- Value$1.10BWeight (prev→now)1.6% → 1.5% ▼
- Value$68.4MWeight (prev→now)3.2% → 2.1% ▼
- Value$67.9MWeight (prev→now)0.9% → 0.7% ▼
- Value$7.9MWeight (prev→now)1.5% → 1.7% ▲
- Value$4.6MWeight (prev→now)3.5% → 3.4% ▼
- Value$3.1MWeight (prev→now)0.0% → 0.0% ▼
- Value$258,184Weight (prev→now)0.0% → 0.0% ▼
SEC 13F · notes
Written summary
Written summary
Zimmer Biomet Holdings Inc (ZBH) is held by 8 of the superinvestors tracked on Compounder, with a combined $3.33B in reported 13F value. The largest position belongs to Dodge & Cox, where it makes up 1.1% of the portfolio.
Other notable holders by value include Bill Nygren (1.5% of its book), Harry Burn (2.1% of its book) and Sarah Ketterer (0.7% of its book).
Over the latest quarter, 0 of the tracked filers opened a new position in ZBH, 2 added to existing ones, 5 trimmed, and 0 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Zimmer Biomet Holdings Inc (ZBH) also commonly hold →
- Walt Disney Co/TheDIS7 holders
- Cvs Health CorpCVS6 holders
- Microsoft CorpMSFT6 holders
- Alphabet Inc-Cl CGOOG6 holders
- Alphabet Inc-Cl AGOOGL5 holders
- Amazon.Com IncAMZN5 holders
ZBH's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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