Steris

Methodology

Steris' sterilization and surgical equipment generates relatively predictable recurring revenue from procedure volumes, equipment placements, and consumables. Healthcare facility relationships create visibility. The calculation works well for this medical products and services provider with clear recurring revenue from installed equipment base and outsourced sterilization services.

Methodology

Steris typically trades at premium PEG ratios reflecting recurring revenue quality, healthcare infrastructure positioning, and consistent execution through acquisitions. While growth appears modest, the business model stability justifies valuations. Compare to other healthcare service providers and Steris' historical range.

Methodology

Steris offers a modest dividend with steady growth as management balances capital returns with acquisition opportunities. The dividend adds some value though capital appreciation from market position matters more. For healthcare infrastructure companies, recurring revenue growth and margin expansion matter more than current yield.