Intuitive Surgical DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.89%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 1%

Historical Data

Revenue growth in the last 10 years (CAGR): 15.04%

Earnings growth in the last 10 years (CAGR): 16.47%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 8.43%

Future Assumptions

End of Year FCF growth: 6%

Growth until end of 2026: 12%

Growth until end of 2034: 8%

Perpetual growth: 3.1%

Net Debt: -5.327B

Outstanding Stock Options Present Value Assumption: $1.74B

Restricted Stock Units Present Value Assumption: $2.409B

Stock Valuation based on these assumptions: $209

Last update 09/26/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Intuitive Surgical (ISRG) and I don’t plan to add a position in the coming days.