Stock Analysis on Net
Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel LibreOffice Calc

Free Cash Flow to The Firm (FCFF)

Medtronic PLC, FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016
Net income attributable to Medtronic 3,606  4,789  4,631  3,104  4,028  3,538 
Net (income) loss attributable to noncontrolling interests 24  17  19  (9) (4) — 
Net noncash charges 3,311  2,367  3,437  1,762  2,717  3,083 
Change in operating assets and liabilities, net of acquisitions and divestitures (701) 61  (1,080) (173) 139  (1,403)
Net cash provided by operating activities 6,240  7,234  7,007  4,684  6,880  5,218 
Cash paid for interest, net of tax1 542  508  873  1,118  991  1,033 
Additions to property, plant, and equipment (1,355) (1,213) (1,134) (1,068) (1,254) (1,046)
Free cash flow to the firm (FCFF) 5,427  6,529  6,746  4,734  6,617  5,205 

Based on: 10-K (filing date: 2021-06-25), 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Medtronic PLC’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Medtronic PLC’s FCFF decreased from 2019 to 2020 and from 2020 to 2021.

Interest Paid, Net of Tax

Medtronic PLC, interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016
Effective Income Tax Rate (EITR)
EITR1 6.80% 21.00% 10.30% 2.50% 12.60% 18.40%
Interest Paid, Net of Tax
Cash paid for interest, before tax 582  643  973  1,147  1,134  1,266 
Less: Cash paid for interest, tax2 40  135  100  29  143  233 
Cash paid for interest, net of tax 542  508  873  1,118  991  1,033 

Based on: 10-K (filing date: 2021-06-25), 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28).

1 See details »

2 2021 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 582 × 6.80% = 40

Enterprise Value to FCFF Ratio, Current

Medtronic PLC, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 165,198 
Free cash flow to the firm (FCFF) 5,427 
Valuation Ratio
EV/FCFF 30.44
Benchmarks
EV/FCFF, Competitors1
Abbott Laboratories 37.68
Anthem Inc. 8.80
Becton, Dickinson & Co. 21.76
Bristol-Myers Squibb Co. 11.01
CVS Health Corp. 11.24
Danaher Corp. 43.89
Edwards Lifesciences Corp. 101.63
HCA Healthcare Inc. 13.43
Intuitive Surgical Inc. 98.42
Stryker Corp. 33.84
UnitedHealth Group Inc. 20.39
EV/FCFF, Sector
Health Care Equipment & Services 20.72
EV/FCFF, Industry
Health Care 23.02

Based on: 10-K (filing date: 2021-06-25).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

Medtronic PLC, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 183,640  139,945  148,881  131,974  140,523  135,959 
Free cash flow to the firm (FCFF)2 5,427  6,529  6,746  4,734  6,617  5,205 
Valuation Ratio
EV/FCFF3 33.84 21.43 22.07 27.88 21.24 26.12
Benchmarks
EV/FCFF, Competitors4
Abbott Laboratories — 36.94 33.05 26.46 23.86 36.35
Anthem Inc. — 6.04 12.73 24.58 13.91 12.29
Becton, Dickinson & Co. 21.71 25.12 30.47 33.39 26.24 20.34
Bristol-Myers Squibb Co. — 11.63 23.39 15.74 24.15 51.76
CVS Health Corp. — 9.42 12.30 17.89 14.20 12.09
Danaher Corp. — 30.66 37.11 25.21 25.94 26.16
Edwards Lifesciences Corp. — 81.12 51.46 51.20 33.02 37.28
HCA Healthcare Inc. — 11.93 17.25 18.06 19.24 15.73
Intuitive Surgical Inc. — 76.70 54.58 57.79 47.07 25.06
Stryker Corp. — 33.98 49.82 32.91 50.00 33.54
UnitedHealth Group Inc. — 15.82 17.51 18.63 18.98 19.38
EV/FCFF, Sector
Health Care Equipment & Services — 17.56 21.64 22.68 21.53 21.58
EV/FCFF, Industry
Health Care — 19.60 20.25 19.63 19.58 17.85

Based on: 10-K (filing date: 2021-06-25), 10-K (filing date: 2020-06-19), 10-K (filing date: 2019-06-21), 10-K (filing date: 2018-06-22), 10-K (filing date: 2017-06-27), 10-K (filing date: 2016-06-28).

1 See details »

2 See details »

3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 183,640 ÷ 5,427 = 33.84

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Medtronic PLC’s EV/FCFF ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.