Medtronic plc (MDT) Stock Valuation — PE Analysis
Medical - Devices · NYSE
Current Price
$80.20
PE Ratio (TTM)
21.4x
Intrinsic Value
$90.54
+11.4% margin of safety
COMPETITIVE MOAT
↑Diversified Product Portfolio
Medtronic offers a broad range of medical devices across multiple therapeutic areas. This diversification reduces reliance on any single product line and mitigates risks associated with market shifts or competitive pressures in specific segments.
↑Strong Regulatory Expertise
Navigating complex global regulatory pathways for medical devices is a significant barrier to entry. Medtronic's extensive experience and established relationships with regulatory bodies provide a competitive advantage in bringing new products to market.
↑Established Sales & Distribution Network
A vast and entrenched global sales and distribution network is crucial for reaching healthcare providers. Medtronic's long-standing presence and relationships with hospitals and clinicians create a formidable barrier for new entrants.
INVESTMENT RISKS
↓Intense Competition
The medical device industry is highly competitive, with numerous players vying for market share. Medtronic faces constant pressure from both large established companies and agile, innovative startups.
↓Product Development & Innovation Pace
Sustaining growth requires continuous innovation and successful new product launches. Failure to keep pace with technological advancements or market demands could lead to market share erosion.
↓Reimbursement & Pricing Pressures
Healthcare systems globally are under pressure to control costs, leading to potential reimbursement challenges and pricing scrutiny for medical devices. This can impact Medtronic's profitability and revenue growth.
Base case
MDT base case PE valuation
A base case PE valuation for MDT estimates a fair value of about $90.54 per share, against a current price of $80.2. The model assumes 8.3% annual earnings growth, a 21x target PE multiple, and a 10% discount rate.
Intrinsic Value
$90.54
Margin of safety
+11.4%
Expected annual return
+2.5%
Base case assumptions: 8.3% annual earnings growth, 21x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MDT PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Medtronic plc respond.
Open PE Calculator for MDTCompany Overview
Medtronic plc is a leading global medical technology enterprise that invents, develops, manufactures, and distributes an extensive range of device-based medical therapies. These solutions serve healthcare systems, clinicians, physicians, and patients across the world. The company's operations are categorized into several key portfolios: Cardiovascular Portfolio: This segment focuses on cardiac health, providing technologies for heart rhythm management, including implantable pacemakers, defibrillators, and monitoring systems, alongside cardiac ablation tools and remote patient software. It also addresses structural heart issues with products like aortic and pulmonary valves, surgical repair devices, and endovascular stent grafts, in addition to offerings for percutaneous coronary interventions (e.g., angioplasty balloons). Medical Surgical Portfolio: Offering a broad spectrum of surgical instruments and therapies, this division includes staples, vessel sealing devices, wound closure products, and electrosurgical equipment. It also pioneers surgical artificial intelligence and robotic-assisted platforms, alongside solutions for hernia repair, gynecology, lung conditions, minimally invasive gastrointestinal and hepatologic diagnostics, patient monitoring, airway management, ventilation therapies, and renal disease. Neuroscience Portfolio: This division delivers specialized products for a diverse group of medical professionals, such as spinal surgeons, neurosurgeons, neurologists, pain management specialists, and ENT experts. Its offerings span energy surgical instruments, advanced image-guided and intra-operative imaging systems, robotic guidance for spine procedures, and therapies targeting the brain's vasculature. Diabetes Operating Unit: Dedicated to diabetes management, this unit provides innovative solutions like insulin pumps and their associated consumables, continuous glucose monitoring (CGM) systems, and smart insulin pen technologies. Established in 1949, Medtronic plc maintains its corporate headquarters in Dublin, Ireland.
Financial Metrics — MDT PE Stock Valuation Data
PE Ratio (TTM)
21.4x
PEG Ratio
6.48
Earnings Yield
4.67%
ROE (TTM)
9.9%
Revenue/Share (TTM)
$28.37
Dividend Yield
3.54%
Debt/Equity
0.57x
Frequently Asked Questions
What is the PE ratio of MDT?
The trailing twelve-month PE ratio of MDT reflects how much investors pay per dollar of Medtronic plc's earnings. This metric is most useful when compared to Medical - Devices peers and the company's own historical range.
Is MDT overvalued based on PE ratio?
MDT's PE of 21.4x combined with a PEG ratio of 6.48 provides a growth-adjusted perspective. A PEG above 2.0 suggests MDT may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Devices, a DCF analysis may be more appropriate.
How do I value MDT stock using PE ratio?
To value Medtronic plc using PE: (1) Compare the current PE (21.4x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (6.48) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MDT?
MDT's PEG ratio is 6.48, calculated by dividing the PE ratio (21.4x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MDT stock valuation?
PE ratio gives a quick relative read — how MDT is priced versus Medical - Devices peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MDT DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value MDT with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.