Medtronic plc (MDT) Stock Valuation — PE Analysis
Medical - Devices · NYSE
Current Price
$85.69
PE Ratio (TTM)
22.9x
Intrinsic Value
$95.73
+10.5% margin of safety
COMPETITIVE MOAT
↑Established Brand & Global Reach
Medtronic's long-standing reputation and extensive global distribution network create significant barriers to entry for new competitors. This allows them to reach a vast customer base efficiently.
↑Product Diversification & Innovation Pipeline
A broad portfolio across multiple therapeutic areas reduces reliance on any single product. Continuous investment in R&D fuels a pipeline of new devices, ensuring ongoing relevance.
↑Regulatory Expertise & Approvals
Navigating complex global regulatory pathways for medical devices requires deep expertise. Medtronic's experience and established relationships streamline product approvals.
INVESTMENT RISKS
↓Product Recalls & Litigation
Past product recalls and ongoing litigation can lead to significant financial costs and reputational damage. This uncertainty impacts investor confidence.
↓Supply Chain Vulnerabilities
Global supply chain disruptions can impact manufacturing and product availability. Reliance on specific components or regions creates operational risks.
↓Healthcare Policy & Reimbursement Changes
Changes in government healthcare policies and reimbursement rates can affect demand and profitability. This regulatory environment introduces significant uncertainty.
Base case
MDT base case PE valuation
At a current price of $85.69, the base case PE valuation puts MDT fair value near $95.73 per share. That figure assumes 7.9% yearly earnings growth, a target PE multiple of 23x, and a 10% discount rate.
Intrinsic Value
$95.73
Margin of safety
+10.5%
Expected annual return
+2.2%
Base case assumptions: 7.9% annual earnings growth, 23x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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)
22.9x
PEG Ratio
6.91
Earnings Yield
4.37%
ROE (TTM)
9.8%
Revenue/Share (TTM)
$28.37
Dividend Yield
3.33%
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 22.9x combined with a PEG ratio of 6.91 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. 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 (22.9x) against the Medical - Devices median to assess relative pricing, (2) check the PEG ratio (6.91) 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 6.91, calculated by dividing the PE ratio (22.9x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.