Medtronic Plc (MDT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+65.5%

$163.30

vs $98.67 price

Levered DCF

$148.35

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

3.07

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	22.22×	23.18×	28.79×	32.14×	27.83×	48.85×	27.35×	25.39×
P/B	2.16×	2.25×	2.11×	2.35×	2.67×	3.42×	2.58×	2.35×
P/S	2.94×	3.23×	3.27×	3.87×	4.42×	5.85×	4.53×	3.85×
EV / EBITDA	13.54×	14.59×	15.8×	16.53×	18.29×	26.44×	19.4×	14.9×
Gross margin	65.0%	65.3%	65.3%	65.7%	68.0%	65.2%	67.4%	70.0%
Operating margin	17.8%	17.8%	15.9%	17.6%	18.2%	14.9%	16.6%	20.5%
Net margin	13.2%	13.9%	11.4%	12.0%	15.9%	12.0%	16.6%	15.2%
Current ratio	2.13×	1.85×	2.03×	2.39×	1.86×	2.65×	2.13×	2.59×
Debt / equity	0.57×	0.59×	0.5×	0.47×	0.46×	0.51×	0.49×	0.51×
Interest coverage	9.04×	8.17×	7.15×	8.62×	10.4×	4.85×	4.39×	4.34×
Dividend yield	3.4%	3.3%	3.5%	3.0%	2.4%	1.8%	2.2%	2.3%
Payout ratio	75.8%	77.0%	99.7%	96.2%	67.1%	86.5%	60.4%	58.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	9.7%	9.7%	7.3%	7.3%	9.6%	7.0%	9.4%	9.2%
Return on invested capital	6.1%	6.1%	4.9%	4.7%	6.4%	4.9%	5.8%	6.8%
Return on assets	5.2%	5.1%	4.1%	4.1%	5.5%	3.9%	5.3%	5.2%
Free cash flow yield	5.1%	4.8%	4.9%	3.8%	4.3%	2.8%	4.6%	5.0%
Earnings yield	4.5%	4.3%	3.5%	3.1%	3.6%	2.0%	3.7%	3.9%
Enterprise value	$132.8B	$134.5B	$129.6B	$143.8B	$160.5B	$198.9B	$151.5B	$138.5B
Net debt / EBITDA	2.65×	2.85×	2.89×	2.62×	2.32×	3.03×	2.64×	2.25×
Cash conversion cycle (days)	162	166	160	160	148	143	145	146