Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Common Stock Valuation Ratios (Price Multiples) 

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Current Valuation Ratios

Medtronic PLC, current price multiples

Microsoft Excel LibreOffice Calc
Medtronic PLC Abbott Laboratories Anthem Inc. Bristol-Myers Squibb Co. CVS Health Corp. Danaher Corp. HCA Healthcare Inc. Intuitive Surgical Inc. Stryker Corp. UnitedHealth Group Inc. Health Care Equipment & Services Health Care
Selected Financial Data
Current share price (P) $105.59
No. shares of common stock outstanding 1,341,539,178
Growth rate (g) 2.53%
 
Earnings per share (EPS) $2.69
Next year expected EPS $2.76
Operating profit per share $3.34
Sales per share $22.45
Book value per share (BVPS) $38.34
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 39.28 28.17 19.96 23.48 15.99 29.23 8.70 45.99 44.24 27.01 24.74 21.18
Price to next year expected earnings 38.31 27.17 17.84 23.79 15.08 26.84 1.11 40.12 41.35 23.13 22.87 19.42
Price-earnings-growth (PEG) 15.52 7.66 1.68 2.67 3.29 0.01 3.14 6.33 1.61 3.02 2.33
Price to operating profit (P/OP) 31.59 23.64 17.28 22.26 9.59 24.54 5.36 43.05 34.14 19.47 18.60 17.44
Price to sales (P/S) 4.70 4.62 0.89 3.54 0.43 6.22 1.03 13.73 5.16 1.64 1.73 2.77
Price to book value (P/BV) 2.75 5.56 3.38 4.57 1.68 4.06 6.59 5.93 6.50 4.32 5.50

Based on: 10-K (reporting date: 2021-04-30).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Medtronic PLC, historical price multiples

Microsoft Excel LibreOffice Calc
Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018 Apr 28, 2017 Apr 29, 2016
Price to earnings (P/E) 46.56 26.30 28.78 37.80 29.96 33.17
Price to operating profit (P/OP) 37.44 26.29 21.26 17.64 22.64 22.18
Price to sales (P/S) 5.57 4.36 4.36 3.92 4.06 4.07
Price to book value (P/BV) 3.26 2.48 2.66 2.31 2.40 2.25

Based on: 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), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Medtronic PLC P/E ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Medtronic PLC P/OP ratio increased from 2019 to 2020 and from 2020 to 2021.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Medtronic PLC P/S ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Medtronic PLC P/BV ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Earnings (P/E)

Medtronic PLC, historical P/E 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
No. shares of common stock outstanding1 1,343,904,180 1,341,298,882 1,341,156,703 1,351,709,097 1,359,026,669 1,394,731,892
Selected Financial Data (US$)
Net income attributable to Medtronic (in millions) 3,606  4,789  4,631  3,104  4,028  3,538 
Earnings per share (EPS)2 2.68 3.57 3.45 2.30 2.96 2.54
Share price1, 3 124.93 93.91 99.38 86.81 88.79 84.14
Valuation Ratio
P/E ratio4 46.56 26.30 28.78 37.80 29.96 33.17
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 29.13 48.49 41.83 56.47 220.29
Anthem Inc. 18.13 15.87 15.96 21.45 15.44
Bristol-Myers Squibb Co. 20.92 41.99 16.81 103.55
CVS Health Corp. 17.39 12.88 14.15 10.69
Danaher Corp. 29.94 44.49 38.34 29.77 27.25
HCA Healthcare Inc. 10.65 16.06 14.30 12.84 15.92
Intuitive Surgical Inc. 59.94 87.47 48.72 53.03 70.95
Stryker Corp. 47.65 57.72 39.24 18.96 54.36
UnitedHealth Group Inc. 26.03 20.54 20.48 21.09 20.77
P/E Ratio, Sector
Health Care Equipment & Services 25.46 36.45 25.51 27.19 26.88
P/E Ratio, Industry
Health Care 20.33 32.08 21.90 24.86 30.51

Based on: 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), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net income attributable to Medtronic ÷ No. shares of common stock outstanding
= 3,606,000,000 ÷ 1,343,904,180 = 2.68

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 124.93 ÷ 2.68 = 46.56

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Medtronic PLC P/E ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Operating Profit (P/OP)

Medtronic PLC, historical P/OP 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
No. shares of common stock outstanding1 1,343,904,180 1,341,298,882 1,341,156,703 1,351,709,097 1,359,026,669 1,394,731,892
Selected Financial Data (US$)
Operating profit (in millions) 4,484  4,791  6,268  6,651  5,330  5,291 
Operating profit per share2 3.34 3.57 4.67 4.92 3.92 3.79
Share price1, 3 124.93 93.91 99.38 86.81 88.79 84.14
Valuation Ratio
P/OP ratio4 37.44 26.29 21.26 17.64 22.64 22.18
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 24.45 40.69 34.03 36.64 60.88
Anthem Inc. 15.70 12.10 13.55 15.87 14.81
Bristol-Myers Squibb Co. 19.84 24.42 16.16 28.87
CVS Health Corp. 10.43 6.65 7.83 18.65 7.44
Danaher Corp. 25.14 36.91 34.47 23.18 22.48
HCA Healthcare Inc. 6.56 8.31 6.93 6.88 5.82
Intuitive Surgical Inc. 56.11 88.37 48.89 49.87 44.40
Stryker Corp. 36.77 41.52 30.13 26.55 24.21
UnitedHealth Group Inc. 18.77 14.12 14.40 14.58 14.42
P/OP Ratio, Sector
Health Care Equipment & Services 19.13 23.46 17.45 17.78 17.07
P/OP Ratio, Industry
Health Care 16.74 22.87 17.76 18.21 16.96

Based on: 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), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 4,484,000,000 ÷ 1,343,904,180 = 3.34

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 124.93 ÷ 3.34 = 37.44

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Medtronic PLC P/OP ratio increased from 2019 to 2020 and from 2020 to 2021.

Price to Sales (P/S)

Medtronic PLC, historical P/S 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
No. shares of common stock outstanding1 1,343,904,180 1,341,298,882 1,341,156,703 1,351,709,097 1,359,026,669 1,394,731,892
Selected Financial Data (US$)
Net sales (in millions) 30,117  28,913  30,557  29,953  29,710  28,833 
Sales per share2 22.41 21.56 22.78 22.16 21.86 20.67
Share price1, 3 124.93 93.91 99.38 86.81 88.79 84.14
Valuation Ratio
P/S ratio4 5.57 4.36 4.36 3.92 4.06 4.07
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 4.78 6.30 4.83 4.37 3.84
Anthem Inc. 0.81 0.60 0.74 0.88 0.67
Bristol-Myers Squibb Co. 3.16 3.16 5.52 3.67 5.02
CVS Health Corp. 0.47 0.35 0.37 0.39 0.38
Danaher Corp. 6.37 7.01 6.29 3.97 3.70
HCA Healthcare Inc. 1.26 1.17 0.98 1.04 0.81
Intuitive Surgical Inc. 17.89 21.29 15.01 16.06 14.97
Stryker Corp. 5.55 6.43 5.49 4.95 4.46
UnitedHealth Group Inc. 1.58 1.24 1.18 1.12 1.10
P/S Ratio, Sector
Health Care Equipment & Services 1.78 1.61 1.54 1.47 1.41
P/S Ratio, Industry
Health Care 2.66 2.65 2.48 2.47 2.43

Based on: 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), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 30,117,000,000 ÷ 1,343,904,180 = 22.41

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 124.93 ÷ 22.41 = 5.57

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Medtronic PLC P/S ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Price to Book Value (P/BV)

Medtronic PLC, historical P/BV 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
No. shares of common stock outstanding1 1,343,904,180 1,341,298,882 1,341,156,703 1,351,709,097 1,359,026,669 1,394,731,892
Selected Financial Data (US$)
Shareholders’ equity (in millions) 51,428  50,737  50,091  50,720  50,294  52,063 
Book value per share (BVPS)2 38.27 37.83 37.35 37.52 37.01 37.33
Share price1, 3 124.93 93.91 99.38 86.81 88.79 84.14
Valuation Ratio
P/BV ratio4 3.26 2.48 2.66 2.31 2.40 2.25
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 5.75 6.65 4.96 4.38 3.40
Anthem Inc. 3.07 2.19 2.42 2.82 2.24
Bristol-Myers Squibb Co. 4.07 3.55 2.80 5.89 8.88
CVS Health Corp. 1.83 1.33 1.47 1.29 1.88
Danaher Corp. 4.16 3.93 3.72 2.80 2.58
HCA Healthcare Inc. 105.40
Intuitive Surgical Inc. 8.59 9.53 8.13 8.96 9.91
Stryker Corp. 6.39 7.05 6.38 5.74 5.56
UnitedHealth Group Inc. 6.27 4.83 4.92 4.89 4.59
P/BV Ratio, Sector
Health Care Equipment & Services 4.45 3.86 3.58 3.62 3.70
P/BV Ratio, Industry
Health Care 5.28 5.20 4.91 4.89 4.51

Based on: 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), 10-K (reporting date: 2017-04-28), 10-K (reporting date: 2016-04-29).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 51,428,000,000 ÷ 1,343,904,180 = 38.27

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 124.93 ÷ 38.27 = 3.26

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Medtronic PLC P/BV ratio decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.