Medtronic PLC, FCFF calculation

US$ in millions

12 months ended:	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Net income attributable to Medtronic	3,758)	5,039)	3,606)	4,789)	4,631)	3,104)
Net (income) loss attributable to noncontrolling interests	26)	23)	24)	17)	19)	(9)
Net noncash charges	3,222)	3,173)	3,311)	2,367)	3,437)	1,762)
Change in operating assets and liabilities, net of acquisitions and divestitures	(967)	(889)	(701)	61)	(1,080)	(173)
Net cash provided by operating activities	6,039)	7,346)	6,240)	7,234)	7,007)	4,684)
Cash paid for interest, net of tax¹	427)	495)	542)	508)	873)	1,118)
Additions to property, plant, and equipment	(1,459)	(1,368)	(1,355)	(1,213)	(1,134)	(1,068)
Free cash flow to the firm (FCFF)	5,007)	6,473)	5,427)	6,529)	6,746)	4,734)

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Medtronic PLC suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Medtronic PLC FCFF increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Medtronic PLC, interest paid, net of tax calculation

US$ in millions

12 months ended:	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Effective Income Tax Rate (EITR)
EITR¹	29.50%	8.30%	6.80%	21.00%	10.30%	2.50%
Interest Paid, Net of Tax
Cash paid for interest, before tax	606)	540)	582)	643)	973)	1,147)
Less: Cash paid for interest, tax²	179)	45)	40)	135)	100)	29)
Cash paid for interest, net of tax	427)	495)	542)	508)	873)	1,118)

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

¹ See details »

² 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 606 × 29.50% = 179

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	121,737)
Free cash flow to the firm (FCFF)	5,007)
Valuation Ratio
EV/FCFF	24.31
Benchmarks
EV/FCFF, Competitors¹
Abbott Laboratories	33.81
Cigna Group	10.76
CVS Health Corp.	11.28
Danaher Corp.	34.40
Elevance Health Inc.	14.66
Humana Inc.	8.60
Intuitive Surgical Inc.	168.29
UnitedHealth Group Inc.	17.42
EV/FCFF, Sector
Health Care Equipment & Services	19.04
EV/FCFF, Industry
Health Care	22.87

Based on: 10-K (reporting date: 2023-04-28).

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.

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

	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021	Apr 24, 2020	Apr 26, 2019	Apr 27, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	132,878)	131,529)	183,640)	139,945)	148,881)	131,974)
Free cash flow to the firm (FCFF)²	5,007)	6,473)	5,427)	6,529)	6,746)	4,734)
Valuation Ratio
EV/FCFF³	26.54	20.32	33.84	21.43	22.07	27.88
Benchmarks
EV/FCFF, Competitors⁴
Abbott Laboratories	36.51	23.24	23.47	36.94	33.05	—
Cigna Group	10.44	13.38	14.17	9.16	10.24	—
CVS Health Corp.	11.96	10.00	10.30	9.42	12.30	—
Danaher Corp.	36.34	25.74	28.25	30.66	37.11	—
Elevance Health Inc.	14.19	13.32	12.74	6.04	12.73	—
Humana Inc.	9.95	14.88	42.03	7.92	8.46	—
Intuitive Surgical Inc.	170.92	85.45	56.01	76.70	54.58	—
UnitedHealth Group Inc.	17.59	19.30	22.21	15.82	17.51	—
EV/FCFF, Sector
Health Care Equipment & Services	19.66	18.05	20.42	15.95	17.63	—
EV/FCFF, Industry
Health Care	23.69	17.73	17.16	17.81	18.15	—

Based on: 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30), 10-K (reporting date: 2020-04-24), 10-K (reporting date: 2019-04-26), 10-K (reporting date: 2018-04-27).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 132,878 ÷ 5,007 = 26.54

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Medtronic PLC EV/FCFF ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Medtronic PLC (NYSE:MDT)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical