Medtronic plc

WBAG:MDT Stock Report

Market Cap: €104.8b

Medtronic Valuation

Is MDT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MDT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MDT (€81.92) is trading below our estimate of fair value (€134.21)

Significantly Below Fair Value: MDT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MDT?

Key metric: As MDT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MDT. This is calculated by dividing MDT's market cap by their current earnings.
What is MDT's PE Ratio?
PE Ratio25.8x
EarningsUS$4.29b
Market CapUS$110.62b

Price to Earnings Ratio vs Peers

How does MDT's PE Ratio compare to its peers?

The above table shows the PE ratio for MDT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average45.8x
BSX Boston Scientific
74.6x23.2%US$133.7b
SYK Stryker
41.2x11.6%US$148.0b
BDX Becton Dickinson
37.6x14.2%US$64.2b
SHL Siemens Healthineers
29.6x14.2%€57.0b
MDT Medtronic
25.8x10.1%€110.6b

Price-To-Earnings vs Peers: MDT is good value based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (45.8x).

Price to Earnings Ratio vs Industry

How does MDT's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MDT 25.8xIndustry Avg. 29.6xNo. of Companies9PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MDT is good value based on its Price-To-Earnings Ratio (25.9x) compared to the European Medical Equipment industry average (29.6x).

Price to Earnings Ratio vs Fair Ratio

What is MDT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MDT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MDT's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MDT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€81.92
€91.88
+12.2%
7.2%€106.71€78.13n/a28
Nov ’25€83.69
€89.20
+6.6%
7.5%€103.76€75.96n/a28
Oct ’25€81.38
€85.83
+5.5%
7.7%€101.18€74.08n/a28
Sep ’25€79.11
€84.54
+6.9%
7.8%€100.07€73.27n/a28
Aug ’25€74.02
€85.53
+15.5%
9.3%€102.74€69.71n/a28
Jul ’25€72.51
€86.82
+19.7%
8.5%€103.42€70.18n/a28
Jun ’25€74.71
€86.82
+16.2%
8.5%€103.42€70.18n/a28
May ’25€75.28
€88.80
+18.0%
8.1%€104.97€70.29n/a28
Apr ’25€80.64
€86.43
+7.2%
8.1%€102.41€68.58n/a28
Mar ’25€76.90
€87.42
+13.7%
8.0%€103.62€69.39n/a28
Feb ’25€80.78
€85.31
+5.6%
9.6%€103.33€66.43n/a28
Jan ’25€74.82
€83.17
+11.2%
10.0%€101.80€61.81n/a28
Dec ’24€72.92
€83.64
+14.7%
10.2%€102.87€62.46n/a28
Nov ’24€66.80
€86.25
+29.1%
10.8%€105.75€64.21€83.6928
Oct ’24€74.74
€87.58
+17.2%
8.8%€103.63€74.02€81.3827
Sep ’24€75.78
€87.58
+15.6%
8.8%€103.63€74.02€79.1127
Aug ’24€79.74
€84.38
+5.8%
9.5%€100.63€69.18€74.0227
Jul ’24€80.92
€85.54
+5.7%
9.2%€102.64€70.56€72.5125
Jun ’24€77.34
€86.47
+11.8%
9.0%€104.80€72.05€74.7123
May ’24€81.92
€82.85
+1.1%
8.9%€101.42€71.53€75.2822
Apr ’24€73.74
€82.94
+12.5%
8.8%€103.32€71.03€80.6422
Mar ’24€76.91
€87.34
+13.6%
11.7%€120.38€72.99€76.9022
Feb ’24€77.57
€82.63
+6.5%
12.8%€116.71€70.76€80.7822
Jan ’24€72.84
€86.01
+18.1%
12.9%€120.55€73.09€74.8223
Dec ’23€75.60
€87.91
+16.3%
13.2%€123.00€74.57€72.9222
Nov ’23€88.24
€104.37
+18.3%
12.6%€129.46€85.31€66.8022

Analyst Forecast: Target price is less than 20% higher than the current share price.

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