Stock Analysis on Net

Medtronic PLC (NYSE:MDT)

Common Stock Valuation Ratios (Price Multiples)

Microsoft Excel

Current Valuation Ratios

Medtronic PLC, current price multiples

Microsoft Excel
Medtronic PLC Abbott Laboratories Cigna Group CVS Health Corp. Danaher Corp. Elevance Health Inc. Humana Inc. Intuitive Surgical Inc. UnitedHealth Group Inc. Health Care Equipment & Services Health Care
Selected Financial Data
Current share price (P) $86.92
No. shares of common stock outstanding 1,327,822,539
Growth rate (g) 2.05%
 
Earnings per share (EPS) $2.83
Next year expected EPS $2.89
Operating profit per share $4.13
Sales per share $23.52
Book value per share (BVPS) $38.77
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 30.71 34.41 20.57 11.98 38.80 20.21 16.94 78.40 20.31 24.20 29.39
Price to next year expected earnings 30.10 32.19 18.47 11.29 35.40 17.96 14.42 69.08 17.32 21.98 26.64
Price-earnings-growth (PEG) 15.00 5.01 1.81 1.96 4.05 1.62 0.97 5.81 1.18 2.40 2.84
Price to operating profit (P/OP) 21.04 30.40 12.44 7.27 35.37 15.89 10.51 79.79 14.05 17.15 25.21
Price to sales (P/S) 3.70 4.91 0.55 0.28 7.70 0.71 0.40 19.79 1.24 1.13 2.38
Price to book value (P/BV) 2.24 5.10 2.30 1.31 3.44 3.08 2.59 10.59 5.12 3.45 5.29

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

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
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
Price to earnings (P/E) 30.94 23.38 46.56 26.30 28.78 37.80
Price to operating profit (P/OP) 21.20 20.48 37.44 26.29 21.26 17.64
Price to sales (P/S) 3.72 3.72 5.57 4.36 4.36 3.92
Price to book value (P/BV) 2.26 2.24 3.26 2.48 2.66 2.31

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).

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 2021 to 2022 but then slightly increased from 2022 to 2023.
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 decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
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 2021 to 2022 but then slightly increased from 2022 to 2023.
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 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Earnings (P/E)

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

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
No. shares of common stock outstanding1 1,330,405,428 1,328,709,310 1,343,904,180 1,341,298,882 1,341,156,703 1,351,709,097
Selected Financial Data (US$)
Net income attributable to Medtronic (in millions) 3,758 5,039 3,606 4,789 4,631 3,104
Earnings per share (EPS)2 2.82 3.79 2.68 3.57 3.45 2.30
Share price1, 3 87.41 88.67 124.93 93.91 99.38 86.81
Valuation Ratio
P/E ratio4 30.94 23.38 46.56 26.30 28.78 37.80
Benchmarks
P/E Ratio, Competitors5
Abbott Laboratories 34.57 26.76 29.13 48.49 41.83
Cigna Group 19.03 13.13 13.43 8.71 13.26
CVS Health Corp. 11.47 27.53 17.39 12.88 14.15
Danaher Corp. 39.09 25.65 29.94 44.49 38.34
Elevance Health Inc. 19.80 19.20 18.13 15.87 15.96
Humana Inc. 17.64 22.52 18.34 14.48 18.10
Intuitive Surgical Inc. 74.11 64.99 59.94 87.47 48.72
UnitedHealth Group Inc. 20.53 22.46 26.03 20.54 20.48
P/E Ratio, Sector
Health Care Equipment & Services 23.99 23.33 25.54 22.65 22.70
P/E Ratio, Industry
Health Care 28.84 21.08 21.04 28.47 21.23

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
EPS = Net income attributable to Medtronic ÷ No. shares of common stock outstanding
= 3,758,000,000 ÷ 1,330,405,428 = 2.82

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

4 2023 Calculation
P/E ratio = Share price ÷ EPS
= 87.41 ÷ 2.82 = 30.94

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 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Operating Profit (P/OP)

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

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
No. shares of common stock outstanding1 1,330,405,428 1,328,709,310 1,343,904,180 1,341,298,882 1,341,156,703 1,351,709,097
Selected Financial Data (US$)
Operating profit (in millions) 5,485 5,752 4,484 4,791 6,268 6,651
Operating profit per share2 4.12 4.33 3.34 3.57 4.67 4.92
Share price1, 3 87.41 88.67 124.93 93.91 99.38 86.81
Valuation Ratio
P/OP ratio4 21.20 20.48 37.44 26.29 21.26 17.64
Benchmarks
P/OP Ratio, Competitors5
Abbott Laboratories 30.54 22.18 24.45 40.69 34.03
Cigna Group 11.51 10.40 9.08 9.03 8.38
CVS Health Corp. 6.96 14.75 10.43 6.65 7.83
Danaher Corp. 35.64 20.97 25.14 36.91 34.47
Elevance Health Inc. 15.57 15.05 15.70 12.10 13.55
Humana Inc. 10.94 16.63 17.08 9.78 15.35
Intuitive Surgical Inc. 75.42 54.49 56.11 88.37 48.89
UnitedHealth Group Inc. 14.20 15.89 18.77 14.12 14.40
P/OP Ratio, Sector
Health Care Equipment & Services 17.00 17.45 19.20 16.88 16.21
P/OP Ratio, Industry
Health Care 24.73 16.35 17.40 21.24 17.43

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 5,485,000,000 ÷ 1,330,405,428 = 4.12

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

4 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 87.41 ÷ 4.12 = 21.20

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 decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Sales (P/S)

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

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
No. shares of common stock outstanding1 1,330,405,428 1,328,709,310 1,343,904,180 1,341,298,882 1,341,156,703 1,351,709,097
Selected Financial Data (US$)
Net sales (in millions) 31,227 31,686 30,117 28,913 30,557 29,953
Sales per share2 23.47 23.85 22.41 21.56 22.78 22.16
Share price1, 3 87.41 88.67 124.93 93.91 99.38 86.81
Valuation Ratio
P/S ratio4 3.72 3.72 5.57 4.36 4.36 3.92
Benchmarks
P/S Ratio, Competitors5
Abbott Laboratories 4.93 4.25 4.78 6.30 4.83
Cigna Group 0.51 0.49 0.42 0.46 0.44
CVS Health Corp. 0.27 0.36 0.47 0.35 0.37
Danaher Corp. 7.76 5.79 6.37 7.01 6.29
Elevance Health Inc. 0.70 0.74 0.81 0.60 0.74
Humana Inc. 0.42 0.68 0.65 0.64 0.76
Intuitive Surgical Inc. 18.71 13.81 17.89 21.29 15.01
UnitedHealth Group Inc. 1.25 1.40 1.58 1.24 1.18
P/S Ratio, Sector
Health Care Equipment & Services 1.12 1.19 1.38 1.23 1.15
P/S Ratio, Industry
Health Care 2.34 2.17 2.29 2.24 2.16

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 31,227,000,000 ÷ 1,330,405,428 = 23.47

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

4 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= 87.41 ÷ 23.47 = 3.72

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 2021 to 2022 but then slightly increased from 2022 to 2023.

Price to Book Value (P/BV)

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

Microsoft Excel
Apr 28, 2023 Apr 29, 2022 Apr 30, 2021 Apr 24, 2020 Apr 26, 2019 Apr 27, 2018
No. shares of common stock outstanding1 1,330,405,428 1,328,709,310 1,343,904,180 1,341,298,882 1,341,156,703 1,351,709,097
Selected Financial Data (US$)
Shareholders’ equity (in millions) 51,483 52,551 51,428 50,737 50,091 50,720
Book value per share (BVPS)2 38.70 39.55 38.27 37.83 37.35 37.52
Share price1, 3 87.41 88.67 124.93 93.91 99.38 86.81
Valuation Ratio
P/BV ratio4 2.26 2.24 3.26 2.48 2.66 2.31
Benchmarks
P/BV Ratio, Competitors5
Abbott Laboratories 5.12 5.06 5.75 6.65 4.96
Cigna Group 2.13 1.95 1.53 1.46 1.49
CVS Health Corp. 1.25 1.61 1.83 1.33 1.47
Danaher Corp. 3.47 3.64 4.16 3.93 3.72
Elevance Health Inc. 3.02 3.19 3.07 2.19 2.42
Humana Inc. 2.70 4.13 3.34 3.55 4.07
Intuitive Surgical Inc. 10.01 7.78 8.59 9.53 8.13
UnitedHealth Group Inc. 5.18 5.81 6.27 4.83 4.92
P/BV Ratio, Sector
Health Care Equipment & Services 3.42 3.55 3.81 3.28 3.14
P/BV Ratio, Industry
Health Care 5.19 4.72 4.81 4.61 4.46

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 Data adjusted for splits and stock dividends.

2 2023 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 51,483,000,000 ÷ 1,330,405,428 = 38.70

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

4 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= 87.41 ÷ 38.70 = 2.26

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 2021 to 2022 but then slightly increased from 2022 to 2023.