Medtronic (MDT): Is the Medical Device Giant Trading Below Its Fair Value?

Medtronic (MDT) stock has shown modest movement lately, trading around $94 per share. With recent performance roughly flat over the past month, investors may be weighing the company’s returns alongside its steady revenue and earnings growth.

See our latest analysis for Medtronic.

Over the past year, Medtronic’s share price has climbed 17.3% year-to-date, and the one-year total shareholder return, which accounts for dividends, is a solid 7.3%. That steady upward momentum hints at a shift in investor sentiment as growth prospects become clearer after a muted stretch, or as recent business updates help shape expectations for the months ahead.

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With the stock trading just below analyst targets and healthy year-over-year growth, investors now face a key question: Is Medtronic an undervalued opportunity, or has the market already priced in its future potential?

Most Popular Narrative: 6.9% Undervalued

With Medtronic closing at $94.13 and the most widely followed narrative assigning a fair value of $101.13, there is a meaningful gap suggesting that the current price may not fully reflect future earnings and revenue expectations. This valuation hinges on several catalysts detailed within the latest analysis, offering a window into how innovation and operational changes could reshape Medtronic’s future.

Medtronic's investments and breakthroughs in digital health technologies, robotics (Hugo), next-generation sensors, and AI-enabled ecosystems (e.g., spine AiBLE, advanced neuromodulation) align with industry-wide digital transformation and minimally invasive trends. These platforms are set to expand procedure volumes and capture market share, supporting future top-line growth and higher-margin revenue streams.

Read the complete narrative.

Want to see what's driving the gap between the current stock and the narrative’s fair value? The secret formula combines robust innovation bets, next-gen technologies and daring long-term growth targets. Get the full story behind the forecast, including the surprising assumptions that analysts are using to value Medtronic’s future leadership in medtech.

Result: Fair Value of $101.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued margin pressure or slower adoption of new products could present challenges to Medtronic’s growth story if not addressed decisively.

Find out about the key risks to this Medtronic narrative.

Build Your Own Medtronic Narrative

If you’d like to explore the numbers from your own perspective or dig deeper than the consensus view, crafting your own analysis takes just a few minutes. Do it your way

A great starting point for your Medtronic research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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