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ISRG: Intuitive Surgical - what valuation is it worth adding?

u/iloveaccounting64 · Reddit — r/ValueInvesting · April 24, 2026 at 11:36 · ⬆ 16 pts · 💬 17 comments  | View on Reddit ↗
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Summary

  • The post analyzes Intuitive Surgical (ISRG) after a strong earnings beat, noting it trades at historically low multiples despite 20% revenue growth and 74% Q1 FCF growth.
  • The author compares the 2022 trough to now, arguing that stock price (+250%) has underperformed FCF growth (+295%), providing a margin of safety, but acknowledges it could fall further.
  • Quality assessment: Well-reasoned DD with fundamental metrics (FCF yield, EBITDA growth) and historical comparison; acknowledges risks, making it a thoughtful value analysis.
Score 16
Comments 17
Upvote % 100%
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u/iloveaccounting64 Reddit r/ValueInvesting
ISRG’s FCF grew 74% in Q1 2026, and TTM FCF yield is 1.7% on a $170B market cap; stock price has risen 250% vs. FCF growth of 295% from the 2022 trough. This relative underperformance of price vs. fundamentals creates a potential re-rating opportunity if growth continues, offering a margin of safety even if sector headwinds persist. The author sees a reasonable risk/reward at current levels, with valuation at multi-year lows, suggesting a medium-term long entry for patient investors. Further sector-wide diagnostic/med-tech drawdowns; macro slowdown impacting procedure volumes; chart support failure below $440 could trigger more selling.
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This Reddit post, published April 24, 2026, features u/iloveaccounting64 discussing ISRG. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/iloveaccounting64  · Tickers: ISRG