Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Enterprise Value to FCFF (EV/FCFF) 

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Medtronic PLC, FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019
Net income attributable to Medtronic 3,676 3,758 5,039 3,606 4,789 4,631
Net income attributable to noncontrolling interests 29 26 23 24 17 19
Net noncash charges 3,566 3,222 3,173 3,311 2,367 3,437
Change in operating assets and liabilities, net of acquisitions and divestitures (484) (967) (889) (701) 61 (1,080)
Net cash provided by operating activities 6,787 6,039 7,346 6,240 7,234 7,007
Cash paid for interest, net of tax1 633 427 495 542 508 873
Additions to property, plant, and equipment (1,587) (1,459) (1,368) (1,355) (1,213) (1,134)
Free cash flow to the firm (FCFF) 5,833 5,007 6,473 5,427 6,529 6,746

Based on: 10-K (reporting date: 2024-04-26), 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).

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 decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Interest Paid, Net of Tax

Medtronic PLC, interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019
Effective Income Tax Rate (EITR)
EITR1 23.40% 29.50% 8.30% 6.80% 21.00% 10.30%
Interest Paid, Net of Tax
Cash paid for interest, before tax 826 606 540 582 643 973
Less: Cash paid for interest, tax2 193 179 45 40 135 100
Cash paid for interest, net of tax 633 427 495 542 508 873

Based on: 10-K (reporting date: 2024-04-26), 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).

1 See details »

2 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 826 × 23.40% = 193


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 124,398
Free cash flow to the firm (FCFF) 5,833
Valuation Ratio
EV/FCFF 21.33
Benchmarks
EV/FCFF, Competitors1
Abbott Laboratories 36.95
Cigna Group 9.43
CVS Health Corp. 9.81
Elevance Health Inc. 10.48
Humana Inc. 7.23
Intuitive Surgical Inc. 248.83
UnitedHealth Group Inc. 19.75
EV/FCFF, Sector
Health Care Equipment & Services 18.94
EV/FCFF, Industry
Health Care 24.16

Based on: 10-K (reporting date: 2024-04-26).

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
Apr 26, 2024 Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 120,025 132,878 131,529 183,640 139,945 148,881
Free cash flow to the firm (FCFF)2 5,833 5,007 6,473 5,427 6,529 6,746
Valuation Ratio
EV/FCFF3 20.58 26.54 20.32 33.84 21.43 22.07
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
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 18.44 17.28 19.60 14.85 16.66
EV/FCFF, Industry
Health Care 24.38 17.63 16.41 17.93 18.26

Based on: 10-K (reporting date: 2024-04-26), 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).

1 See details »

2 See details »

3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 120,025 ÷ 5,833 = 20.58

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 EV/FCFF ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.