Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Medtronic PLC, current price multiples
| Medtronic PLC | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $87.54 | |||||||||
| No. shares of common stock outstanding | 1,280,045,190 | |||||||||
| Growth rate (g) | 1.37% | |||||||||
| Earnings per share (EPS) | $3.75 | |||||||||
| Next year expected EPS | $3.80 | |||||||||
| Operating profit per share | $5.05 | |||||||||
| Sales per share | $28.41 | |||||||||
| Book value per share (BVPS) | $38.64 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 23.34 | 28.65 | 14.40 | 43.68 | 31.68 | 27.93 | 30.68 | |||
| Price to next year expected earnings | 23.02 | 26.56 | 12.88 | 38.30 | 28.22 | 25.48 | 27.95 | |||
| Price-earnings-growth (PEG) | 17.03 | 3.65 | 1.22 | 3.11 | 2.59 | 2.90 | 3.14 | |||
| Price to operating profit (P/OP) | 17.33 | 23.21 | 12.41 | 42.35 | 20.14 | 20.88 | 23.97 | |||
| Price to sales (P/S) | 3.08 | 4.22 | 0.41 | 12.39 | 0.86 | 1.22 | 3.62 | |||
| Price to book value (P/BV) | 2.27 | 3.58 | 1.86 | 7.00 | 4.06 | 3.47 | 6.59 | |||
Based on: 10-K (reporting date: 2026-04-24).
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
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).
A comprehensive contraction in valuation multiples is observed across all primary price metrics from April 2021 through April 2026. This downward trend suggests a market shift toward more conservative valuation levels or a realignment of investor expectations regarding growth and profitability.
- Price to Earnings (P/E)
- The P/E ratio experienced a significant decline from a peak of 46.56 in April 2021 to 21.15 by April 2026. While a temporary increase to 30.94 occurred in April 2023, the overall trajectory indicates a substantial reduction in the multiple investors are willing to pay per dollar of earnings.
- Price to Operating Profit (P/OP)
- A consistent downward trend is evident in the P/OP ratio, which fell from 37.44 in April 2021 to 15.70 in April 2026. The most pronounced drop occurred between 2021 and 2022, after which the ratio maintained a steady decline, signaling a lower valuation relative to core operational profitability.
- Price to Sales (P/S)
- The P/S ratio decreased from 5.57 in April 2021 to 2.79 in April 2026. Following a period of stability between April 2022 and April 2023 at 3.72, the ratio continued to contract, indicating that the market is assigning a lower value to each unit of revenue generated.
- Price to Book Value (P/BV)
- The P/BV ratio declined from 3.26 in April 2021 to 2.05 in April 2022 and remained relatively range-bound between 2.05 and 2.30 for the remainder of the period. This suggests a stabilization in the valuation of the company's net assets relative to its market price.
In summary, the valuation profile transitioned from a high-premium state in 2021 to a more compressed valuation environment by 2026. The synchronized decline across earnings, operating profit, sales, and book value multiples reflects a broad reduction in the equity risk premium or a fundamental repricing of the company's growth prospects.
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Price to Earnings (P/E)
Medtronic PLC, historical P/E 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$) | |||||||
| Net income attributable to Medtronic (in millions) | 4,801) | 4,662) | 3,676) | 3,758) | 5,039) | 3,606) | |
| Earnings per share (EPS)2 | 3.75 | 3.64 | 2.87 | 2.82 | 3.79 | 2.68 | |
| Share price1, 3 | 79.34 | 86.34 | 80.17 | 87.41 | 88.67 | 124.93 | |
| Valuation Ratio | |||||||
| P/E ratio4 | 21.15 | 23.73 | 27.97 | 30.94 | 23.38 | 46.56 | |
| Benchmarks | |||||||
| P/E Ratio, Competitors5 | |||||||
| Abbott Laboratories | — | 29.89 | 17.46 | 34.57 | 26.76 | 29.13 | |
| Elevance Health Inc. | — | 13.21 | 14.85 | 19.80 | 19.20 | 18.13 | |
| Intuitive Surgical Inc. | — | 59.55 | 87.82 | 74.11 | 64.99 | 59.94 | |
| UnitedHealth Group Inc. | — | 22.20 | 29.75 | 20.53 | 22.46 | 26.03 | |
| P/E Ratio, Sector | |||||||
| Health Care Equipment & Services | — | 25.76 | 26.60 | 25.86 | 24.26 | 28.98 | |
| P/E Ratio, Industry | |||||||
| Health Care | — | 28.31 | 38.03 | 30.62 | 21.22 | 21.55 | |
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 2026 Calculation
EPS = Net income attributable to Medtronic ÷ No. shares of common stock outstanding
= 4,801,000,000 ÷ 1,280,045,190 = 3.75
3 Closing price as at the filing date of Medtronic PLC Annual Report.
4 2026 Calculation
P/E ratio = Share price ÷ EPS
= 79.34 ÷ 3.75 = 21.15
5 Click competitor name to see calculations.
The financial data reveals a significant contraction in valuation multiples over the six-year period from 2021 to 2026, characterized by a declining price-to-earnings (P/E) ratio despite an overall increase in earnings per share (EPS).
- Share Price Performance
- A pronounced downward trajectory is observed in the share price, which decreased from a peak of 124.93 US$ in 2021 to 79.34 US$ by 2026. The most substantial decline occurred between 2021 and 2022, after which the price remained volatile with a general tendency toward lower valuations.
- Earnings Per Share (EPS) Trends
- EPS exhibited volatility but showed an overall growth trend. After increasing to 3.79 US$ in 2022, earnings experienced a contraction in 2023 and 2024 before recovering to 3.75 US$ in 2026. The final EPS value represents a meaningful improvement over the 2.68 US$ reported in 2021.
- Price-to-Earnings (P/E) Ratio Analysis
- The P/E ratio underwent a substantial compression, falling from 46.56 in 2021 to 21.15 in 2026. This reduction indicates a shift in investor sentiment or a fundamental re-rating of the stock's value. The sharp drop between 2021 and 2022 suggests a correction of previous valuation premiums. Because the P/E ratio continued to decline while EPS generally improved, it is evident that the share price has depreciated at a rate that exceeds the growth in earnings, leading to a more conservative valuation multiple over time.
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Price to Operating Profit (P/OP)
Medtronic PLC, historical P/OP 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$) | |||||||
| Operating profit (in millions) | 6,467) | 5,955) | 5,144) | 5,485) | 5,752) | 4,484) | |
| Operating profit per share2 | 5.05 | 4.65 | 4.01 | 4.12 | 4.33 | 3.34 | |
| Share price1, 3 | 79.34 | 86.34 | 80.17 | 87.41 | 88.67 | 124.93 | |
| Valuation Ratio | |||||||
| P/OP ratio4 | 15.70 | 18.58 | 19.98 | 21.20 | 20.48 | 37.44 | |
| Benchmarks | |||||||
| P/OP Ratio, Competitors5 | |||||||
| Abbott Laboratories | — | 24.21 | 34.28 | 30.54 | 22.18 | 24.45 | |
| Elevance Health Inc. | — | 11.39 | 12.19 | 15.57 | 15.05 | 15.70 | |
| Intuitive Surgical Inc. | — | 57.74 | 86.83 | 75.42 | 54.49 | 56.11 | |
| UnitedHealth Group Inc. | — | 14.12 | 13.27 | 14.20 | 15.89 | 18.77 | |
| P/OP Ratio, Sector | |||||||
| Health Care Equipment & Services | — | 19.26 | 19.64 | 19.09 | 18.47 | 22.66 | |
| P/OP Ratio, Industry | |||||||
| Health Care | — | 22.12 | 26.90 | 27.48 | 16.58 | 18.20 | |
Based on: 10-K (reporting date: 2026-04-24), 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30).
1 Data adjusted for splits and stock dividends.
2 2026 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 6,467,000,000 ÷ 1,280,045,190 = 5.05
3 Closing price as at the filing date of Medtronic PLC Annual Report.
4 2026 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 79.34 ÷ 5.05 = 15.70
5 Click competitor name to see calculations.
The analysis of price multiples reveals a consistent compression of the Price to Operating Profit (P/OP) ratio over the six-year period from April 2021 to April 2026. This trend is characterized by a significant initial correction followed by a steady decline, suggesting a shift in market valuation relative to the underlying operational performance.
- Share Price Performance
- The share price experienced a notable decline from a peak of 124.93 US$ in April 2021 to 79.34 US$ by April 2026. Although a temporary recovery occurred in April 2025, where the price rose to 86.34 US$, the overall trajectory remained downward, representing a substantial reduction in market capitalization per share.
- Operating Profit per Share Trends
- In contrast to the share price, operating profit per share exhibited a general upward trend. Starting at 3.34 US$ in April 2021, the figure grew to 5.05 US$ by April 2026. Despite minor fluctuations between 2022 and 2024, the long-term trend indicates an improvement in operational efficiency and profitability on a per-share basis.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio underwent a sharp contraction, falling from 37.44 in April 2021 to 15.70 in April 2026. The most dramatic decrease occurred between 2021 and 2022, when the ratio dropped by approximately 45%. The subsequent years showed a continued, albeit more gradual, decline. This divergence—where operating profits increased while the share price decreased—indicates a significant devaluation of the company's operating earnings in the eyes of the market.
The overall financial pattern indicates that the market has significantly lowered the multiple it is willing to pay for each dollar of operating profit. The transition from a P/OP of 37.44 to 15.70 reflects a transition from a premium valuation to a more conservative pricing model, even as the company successfully increased its operational earnings per share.
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Price to Sales (P/S)
Medtronic PLC, historical P/S 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$) | |||||||
| Net sales (in millions) | 36,364) | 33,537) | 32,364) | 31,227) | 31,686) | 30,117) | |
| Sales per share2 | 28.41 | 26.17 | 25.24 | 23.47 | 23.85 | 22.41 | |
| Share price1, 3 | 79.34 | 86.34 | 80.17 | 87.41 | 88.67 | 124.93 | |
| Valuation Ratio | |||||||
| P/S ratio4 | 2.79 | 3.30 | 3.18 | 3.72 | 3.72 | 5.57 | |
| Benchmarks | |||||||
| P/S Ratio, Competitors5 | |||||||
| Abbott Laboratories | — | 4.40 | 5.58 | 4.93 | 4.25 | 4.78 | |
| Elevance Health Inc. | — | 0.38 | 0.51 | 0.70 | 0.74 | 0.81 | |
| Intuitive Surgical Inc. | — | 16.90 | 24.42 | 18.71 | 13.81 | 17.89 | |
| UnitedHealth Group Inc. | — | 0.60 | 1.08 | 1.25 | 1.40 | 1.58 | |
| P/S Ratio, Sector | |||||||
| Health Care Equipment & Services | — | 1.12 | 1.62 | 1.66 | 1.71 | 2.07 | |
| P/S Ratio, Industry | |||||||
| Health Care | — | 3.34 | 3.36 | 3.52 | 3.11 | 3.28 | |
Based on: 10-K (reporting date: 2026-04-24), 10-K (reporting date: 2025-04-25), 10-K (reporting date: 2024-04-26), 10-K (reporting date: 2023-04-28), 10-K (reporting date: 2022-04-29), 10-K (reporting date: 2021-04-30).
1 Data adjusted for splits and stock dividends.
2 2026 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 36,364,000,000 ÷ 1,280,045,190 = 28.41
3 Closing price as at the filing date of Medtronic PLC Annual Report.
4 2026 Calculation
P/S ratio = Share price ÷ Sales per share
= 79.34 ÷ 28.41 = 2.79
5 Click competitor name to see calculations.
An analysis of the valuation metrics reveals a consistent compression in the price-to-sales (P/S) multiple over the observed period. While the company has demonstrated steady growth in revenue efficiency per share, the equity market has applied a lower valuation multiple to those earnings, resulting in a downward trajectory for the P/S ratio.
- Share Price Movement
- The share price experienced a significant decline from a peak of 124.93 US$ in April 2021 to 79.34 US$ by April 2026. Despite a brief recovery in 2025 where the price rose to 86.34 US$, the overall trend is characterized by a substantial reduction in market value.
- Sales per Share Performance
- In contrast to the share price, sales per share exhibited a general upward trend. Starting at 22.41 US$ in 2021, the figure grew to 28.41 US$ by 2026. This indicates an increase in the company's ability to generate revenue on a per-share basis, reflecting positive organic growth or operational scaling over the six-year period.
- Price-to-Sales (P/S) Ratio Dynamics
- The P/S ratio shifted from a high of 5.57 in 2021 to 2.79 in 2026. The most sharp contraction occurred between 2021 and 2022, where the ratio dropped from 5.57 to 3.72. The continued decline to 2.79, despite increasing sales per share, suggests that the market's willingness to pay a premium for each dollar of revenue has diminished significantly.
The divergence between rising sales per share and a falling share price indicates that the valuation compression is not driven by a failure in revenue generation, but rather by a shift in market sentiment, increased risk perception, or a broader sector-wide re-rating of multiples.
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Price to Book Value (P/BV)
Medtronic PLC, historical P/BV 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$) | |||||||
| Shareholders’ equity (in millions) | 49,463) | 48,024) | 50,214) | 51,483) | 52,551) | 51,428) | |
| Book value per share (BVPS)2 | 38.64 | 37.48 | 39.16 | 38.70 | 39.55 | 38.27 | |
| Share price1, 3 | 79.34 | 86.34 | 80.17 | 87.41 | 88.67 | 124.93 | |
| Valuation Ratio | |||||||
| P/BV ratio4 | 2.05 | 2.30 | 2.05 | 2.26 | 2.24 | 3.26 | |
| Benchmarks | |||||||
| P/BV Ratio, Competitors5 | |||||||
| Abbott Laboratories | — | 3.74 | 4.91 | 5.12 | 5.06 | 5.75 | |
| Elevance Health Inc. | — | 1.70 | 2.15 | 3.02 | 3.19 | 3.07 | |
| Intuitive Surgical Inc. | — | 9.54 | 12.41 | 10.01 | 7.78 | 8.59 | |
| UnitedHealth Group Inc. | — | 2.84 | 4.63 | 5.18 | 5.81 | 6.27 | |
| P/BV Ratio, Sector | |||||||
| Health Care Equipment & Services | — | 3.20 | 4.26 | 4.43 | 4.46 | 5.01 | |
| P/BV Ratio, Industry | |||||||
| Health Care | — | 6.08 | 5.99 | 5.94 | 5.26 | 5.48 | |
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 2026 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 49,463,000,000 ÷ 1,280,045,190 = 38.64
3 Closing price as at the filing date of Medtronic PLC Annual Report.
4 2026 Calculation
P/BV ratio = Share price ÷ BVPS
= 79.34 ÷ 38.64 = 2.05
5 Click competitor name to see calculations.
An analysis of the Price to Book Value (P/BV) ratio reveals a significant contraction followed by a period of relative stabilization between April 2021 and April 2026. The most pronounced shift occurred between the 2021 and 2022 fiscal periods, during which the ratio declined from 3.26 to 2.24.
- Share Price Influence
- The downward trajectory of the P/BV ratio is primarily attributed to the decline in share price. Market valuation decreased from a peak of 124.93 in April 2021 to 79.34 by April 2026. This reduction in market price exerted downward pressure on the multiple, independent of the company's intrinsic book value.
- Book Value per Share (BVPS) Stability
- The BVPS remained remarkably consistent over the analyzed timeframe, fluctuating within a narrow corridor between 37.48 and 39.55. Because the book value per share showed minimal variance, the changes observed in the P/BV ratio are almost exclusively the result of market price volatility rather than shifts in the underlying equity base.
- Ratio Equilibrium and Range
- Following the initial correction in 2022, the P/BV ratio entered a phase of equilibrium, oscillating between 2.05 and 2.30. This indicates a sustained market valuation of approximately two times the book value from April 2022 through April 2026, suggesting a stabilization in investor sentiment regarding the company's asset-based valuation.
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