Healthcare • NYSE
According to Zyberno, ZIMMER BIOMET HOLDINGS, INC. (ZBH) shows a Value Trap signal — AVERAGE BUSINESS (52/100) with an apparent Margin of Safety of +10.6%, but a Brina Gap of -16.3% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, ZIMMER BIOMET HOLDINGS, INC. (ZBH) trades at $99.99 against an estimated intrinsic value per share of $111.80 — a +10.6% Margin of Safety based on Owner Earnings of $1.46B TTM, projected at 4.1% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -16.3% weakens the case: based on the company's ROIC (4.8%) and reinvestment rate (-92.2%), the business can fundamentally grow at -4.4% — but the current enterprise value implies the market expects 11.9%. This places ZBH in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 6.4% annually.
Over the trailing twelve months, ZBH generated $1.46B in Owner Earnings. Capital was deployed as follows: $250.10M returned via share buybacks, $187.70M paid as dividends, $216.20M invested in capital expenditures. Reinvestment rate: -92.2%. Owner Earnings have grown at 4.1% annually over the trailing five years using log-linear regression.