Medtronic PLC, FCFE calculation

US$ in millions

12 months ended:	Apr 24, 2026	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021
Net income attributable to Medtronic	4,801)	4,662)	3,676)	3,758)	5,039)	3,606)
Net income attributable to noncontrolling interests	36)	29)	29)	26)	23)	24)
Net noncash charges	3,916)	3,407)	3,566)	3,222)	3,173)	3,311)
Change in operating assets and liabilities, net of acquisitions and divestitures	(1,423)	(1,054)	(484)	(967)	(889)	(701)
Net cash provided by operating activities	7,330)	7,044)	6,787)	6,039)	7,346)	6,240)
Additions to property, plant, and equipment	(1,904)	(1,859)	(1,587)	(1,459)	(1,368)	(1,355)
Change in current debt obligations, net	9)	(1,070)	1,073)	—)	—)	(311)
Proceeds from short-term borrowings, maturities greater than 90 days	—)	—)	—)	2,284)	—)	2,789)
Repayments from short-term borrowings, maturities greater than 90 days	—)	—)	—)	(2,279)	—)	(2,853)
Issuance of long-term debt	1,747)	3,209)	—)	5,409)	—)	7,172)
Payments on long-term debt	(2,930)	—)	—)	(6,012)	(1)	(7,367)
Free cash flow to equity (FCFE)	4,252)	7,324)	6,273)	3,982)	5,977)	4,315)

Based on: 10-K (reporting date: 2026-04-24), 10-K (reporting date: 2025-04-25), 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).

An analysis of the cash flow trends between April 2021 and April 2026 reveals a divergence between operational cash generation and the cash available to equity holders. While operating cash flows demonstrate a steady long-term upward trajectory, free cash flow to equity (FCFE) exhibits significant volatility, suggesting fluctuations in capital expenditures and net borrowing activities.

Operating Cash Flow Trends: Net cash provided by operating activities displays a general growth pattern, increasing from 6,240 million US$ in 2021 to 7,330 million US$ by 2026. A temporary contraction occurred in 2023, where cash flow dropped to 6,039 million US$, but this was followed by three consecutive years of recovery and expansion, indicating a resilient core operational capacity to generate liquidity.
Free Cash Flow to Equity (FCFE) Volatility: FCFE shows less stability than operating cash flows, characterized by sharp fluctuations. After an initial rise to 5,977 million US$ in 2022, a notable decline to 3,982 million US$ was recorded in 2023. A strong recovery followed, peaking at 7,324 million US$ in 2025 before experiencing a sharp decrease to 4,252 million US$ in 2026.
Cash Flow Conversion and Capital Allocation: The relationship between operating cash and FCFE indicates shifting financial strategies. In 2025, FCFE exceeded net cash provided by operating activities, which typically suggests the infusion of cash through new debt issuance or the sale of assets to supplement operational cash. Conversely, the substantial drop in FCFE in 2026, despite an increase in operating cash, points toward a significant increase in capital expenditures or an aggressive repayment of debt during that period.

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Medtronic PLC, current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,280,045,190
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	4,252)
FCFE per share	3.32
Current share price (P)	85.39
Valuation Ratio
P/FCFE	25.71
Benchmarks
P/FCFE, Competitors¹
Abbott Laboratories	31.64
Elevance Health Inc.	21.43
Intuitive Surgical Inc.	50.12
UnitedHealth Group Inc.	22.40
P/FCFE, Sector
Health Care Equipment & Services	24.17
P/FCFE, Industry
Health Care	25.84

Based on: 10-K (reporting date: 2026-04-24).

¹ Click competitor name to see calculations.

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

Medtronic PLC, historical P/FCFE calculation, comparison to benchmarks

	Apr 24, 2026	Apr 25, 2025	Apr 26, 2024	Apr 28, 2023	Apr 29, 2022	Apr 30, 2021
No. shares of common stock outstanding¹	1,280,045,190	1,281,264,703	1,282,269,783	1,330,405,428	1,328,709,310	1,343,904,180
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	4,252)	7,324)	6,273)	3,982)	5,977)	4,315)
FCFE per share³	3.32	5.72	4.89	2.99	4.50	3.21
Share price^1, 4	79.34	86.34	80.17	87.41	88.67	124.93
Valuation Ratio
P/FCFE⁵	23.88	15.10	16.39	29.20	19.71	38.91
Benchmarks
P/FCFE, Competitors⁶
Abbott Laboratories	—	33.73	40.25	76.56	26.11	24.52
Elevance Health Inc.	—	19.67	8.26	16.04	14.26	11.07
Intuitive Surgical Inc.	—	68.28	156.44	177.77	89.67	58.39
UnitedHealth Group Inc.	—	15.93	12.12	15.33	12.57	20.11
P/FCFE, Sector
Health Care Equipment & Services	—	22.60	17.78	22.95	16.47	22.14
P/FCFE, Industry
Health Care	—	24.43	19.36	18.20	18.50	17.94

Based on: 10-K (reporting date: 2026-04-24), 10-K (reporting date: 2025-04-25), 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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 4,252,000,000 ÷ 1,280,045,190 = 3.32

⁴ Closing price as at the filing date of Medtronic PLC Annual Report.

⁵ 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 79.34 ÷ 3.32 = 23.88

⁶ Click competitor name to see calculations.

The analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio reveals a period of significant valuation adjustment and volatility between 2021 and 2026.

Share Price Trajectory: A pronounced downward trend is observed from 2021, where the share price stood at 124.93 US$, falling to a range between 79.34 US$ and 88.67 US$ from 2022 through 2026. This suggests a substantial market correction followed by a period of consolidation at lower price levels.
FCFE per Share Performance: Free Cash Flow to Equity per share demonstrates high variability throughout the period. Notable peaks occurred in 2022 (4.50 US$) and 2025 (5.72 US$), while significant troughs were recorded in 2023 (2.99 US$) and 2026 (3.32 US$). These fluctuations indicate inconsistency in the conversion of earnings to distributable cash flow per share.
P/FCFE Ratio Dynamics: The P/FCFE ratio underwent a sharp contraction from a peak of 38.91 in 2021 to a minimum of 15.10 in 2025. This trend indicates a significant compression in the valuation multiple assigned to the company's cash flow. The increase to 23.88 in 2026 is primarily driven by the projected decline in FCFE per share rather than an increase in share price, reflecting increased sensitivity to cash flow volatility.

Overall, the data indicates a transition from a high-premium valuation environment in 2021 to a more compressed and volatile regime. The valuation is currently more dependent on the stability of free cash flow generation than on share price appreciation.

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Medtronic PLC (NYSE:MDT)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical