Verdict
Fairly valued
What is Intuitive Surgical, Inc. (ISRG) worth?
Currently $350.06 — 5% premium to Dolphy’s fair value · ● live
Steady operator
medium confidence in the point estimate
● live · as of 2026-07-21 21:28 · Market cap $124.2B
As of 2026-07-17, Intuitive Surgical, Inc. (ISRG) looks fairly valued. Dolphy estimates a fair value of $332.00 versus a current price of $350.06 — a 5% premium to fair value.
Executive summary
Intuitive Surgical (ISRG, $350.68 as of 2026-07-17) is the dominant franchise in robotic-assisted surgery — the da Vinci systems plus a razor-and-blade stream of instruments, accessories and services, extended by Ion in lung biopsy. The business is exceptional: ~66% gross margin, ~29% net margin, ~17% revenue CAGR, ~29% net-income CAGR, zero debt and ~$8.6B of cash and investments. The question is never business quality; it's price. My probability-weighted fair value is ~$332/share, so the stock trades at a modest premium (~6%) to intrinsic value — I read it as roughly fairly valued, leaning slightly rich. A reverse-DCF shows the market is paying for ~13% FCF growth for a decade; that is very much achievable, but it is not a bargain, and the recent selloff (Q2 beat but guidance to the slowest procedure growth in years) is a legitimate warning that the long, uninterrupted compounding is maturing and that Medtronic and J&J are finally arriving with credible platforms.
How we value it
Two-stage FCF DCF (probability-weighted scenarios), cross-checked with reverse-DCF and earnings multiples
Every figure is computed from SEC filings by the analyst’s calculator tools and fact-checked by a second, independent model.
Investment thesis
About Intuitive Surgical, Inc.
Intuitive Surgical, Inc. develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. It offers the da Vinci Surgical System that enables surgical procedures using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic endoluminal procedures enabling minimally invasive biopsies in the lung. The company also provides a suite of stapling, energy, and core instrumentation for its multi-port da Vinci surgical systems; progressive learning pathways to support the use of its technology; infrastructure of customer service and support specialists, a complement of services to its customers, including installation, repair, maintenance, 24/7 technical support, and proactive system health monitoring; and integrated digital capabilities providing connected offerings, streamlining performance for hospitals with program-enhancing insights. It sells its products through direct sales organizations, such as capital and clinical sales teams. Intuitive Surgical, Inc. was incorporated in 1995 and is headquartered in Sunnyvale, California.
Frequently asked questions
Is ISRG a buy?
As of 2026-07-17, Intuitive Surgical, Inc. (ISRG) looks fairly valued. Dolphy estimates a fair value of $332.00 versus a current price of $350.06 — a 5% premium to fair value.
What is ISRG's fair value?
Dolphy's estimated fair value for Intuitive Surgical, Inc. (ISRG) is $332.00, versus a current market price of $350.06.
Is ISRG overvalued or undervalued?
Intuitive Surgical, Inc. (ISRG) currently looks fairly valued — trading at a 5% premium to Dolphy's estimated fair value of $332.00.
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AI-generated research by Dolphy for educational and informational purposes only — not investment advice. Figures are computed from public sources and may contain errors.