MDT PE Ratio & Valuation,Is MDT Overvalued

MDT Relative Valuation

MDT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MDT is overvalued; if below, it's undervalued.

Historical Valuation

Medtronic PLC (MDT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 16.41 is considered Undervalued compared with the five-year average of 17.07. The fair price of Medtronic PLC (MDT) is between 106.31 to 130.83 according to relative valuation methord. Compared to the current price of 98.69 USD , Medtronic PLC is Undervalued By 7.16%.

Relative Value

Fair Zone

106.31-130.83

Current Price：98.69

7.16%

Undervalued

16.41

13.71

EV/EBITDA

Medtronic PLC. (MDT) has a current EV/EBITDA of 13.71. The 5-year average EV/EBITDA is 14.50. The thresholds are as follows: Strongly Undervalued below 10.60, Undervalued between 10.60 and 12.55, Fairly Valued between 16.45 and 12.55, Overvalued between 16.45 and 18.40, and Strongly Overvalued above 18.40. The current Forward EV/EBITDA of 13.71 falls within the Historic Trend Line -Fairly Valued range.

15.34

EV/EBIT

Medtronic PLC. (MDT) has a current EV/EBIT of 15.34. The 5-year average EV/EBIT is 16.10. The thresholds are as follows: Strongly Undervalued below 11.92, Undervalued between 11.92 and 14.01, Fairly Valued between 18.20 and 14.01, Overvalued between 18.20 and 20.29, and Strongly Overvalued above 20.29. The current Forward EV/EBIT of 15.34 falls within the Historic Trend Line -Fairly Valued range.

3.33

Medtronic PLC. (MDT) has a current PS of 3.33. The 5-year average PS is 3.78. The thresholds are as follows: Strongly Undervalued below 2.33, Undervalued between 2.33 and 3.06, Fairly Valued between 4.51 and 3.06, Overvalued between 4.51 and 5.24, and Strongly Overvalued above 5.24. The current Forward PS of 3.33 falls within the Historic Trend Line -Fairly Valued range.

14.85

P/OCF

Medtronic PLC. (MDT) has a current P/OCF of 14.85. The 5-year average P/OCF is 15.60. The thresholds are as follows: Strongly Undervalued below 9.62, Undervalued between 9.62 and 12.61, Fairly Valued between 18.59 and 12.61, Overvalued between 18.59 and 21.58, and Strongly Overvalued above 21.58. The current Forward P/OCF of 14.85 falls within the Historic Trend Line -Fairly Valued range.

19.79

P/FCF

Medtronic PLC. (MDT) has a current P/FCF of 19.79. The 5-year average P/FCF is 20.11. The thresholds are as follows: Strongly Undervalued below 12.50, Undervalued between 12.50 and 16.30, Fairly Valued between 23.91 and 16.30, Overvalued between 23.91 and 27.72, and Strongly Overvalued above 27.72. The current Forward P/FCF of 19.79 falls within the Historic Trend Line -Fairly Valued range.

Medtronic PLC (MDT) has a current Price-to-Book (P/B) ratio of 2.53. Compared to its 3-year average P/B ratio of 2.25 , the current P/B ratio is approximately 12.60% higher. Relative to its 5-year average P/B ratio of 2.47, the current P/B ratio is about 2.52% higher. Medtronic PLC (MDT) has a Forward Free Cash Flow (FCF) yield of approximately 4.23%. Compared to its 3-year average FCF yield of 4.40%, the current FCF yield is approximately -3.98% lower. Relative to its 5-year average FCF yield of 4.18% , the current FCF yield is about 1.11% lower.

2.53

P/B

Median3y

2.25

Median5y

2.47

4.23

FCF Yield

Median3y

4.40

Median5y

4.18

Competitors Valuation Multiple

The average P/S ratio for MDT's competitors is 5.91, providing a benchmark for relative valuation. Medtronic PLC Corp (MDT) exhibits a P/S ratio of 3.33, which is -43.72% above the industry average. Given its robust revenue growth of 6.64%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MDT increased by 10.73% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 8.40B to 8.96B.

The secondary factor is the P/E Change, contributed 2.78%to the performance.

Overall, the performance of MDT in the past 1 year is driven by Revenue Growth. Which is more sustainable.

6.64%

8.40B → 8.96B

Revenue Growth

1.31%

15.21 → 15.41

Margin Expansion

2.78%

25.33 → 26.03

P/E Change

10.73%

90.11 → 99.77

Mkt Cap Growth

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Frequently Asked Questions

Is Medtronic PLC (MDT) currently overvalued or undervalued?

What is Medtronic PLC (MDT) fair value?

MDT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Medtronic PLC (MDT) is between 106.31 to 130.83 according to relative valuation methord.

How does MDT's valuation metrics compare to the industry average?

What is the current P/B ratio for Medtronic PLC (MDT) as of Jan 09 2026?

As of Jan 09 2026, Medtronic PLC (MDT) has a P/B ratio of 2.53. This indicates that the market values MDT at 2.53 times its book value.

What is the current FCF Yield for Medtronic PLC (MDT) as of Jan 09 2026?

As of Jan 09 2026, Medtronic PLC (MDT) has a FCF Yield of 4.23%. This means that for every dollar of Medtronic PLC’s market capitalization, the company generates 4.23 cents in free cash flow.

What is the current Forward P/E ratio for Medtronic PLC (MDT) as of Jan 09 2026?

As of Jan 09 2026, Medtronic PLC (MDT) has a Forward P/E ratio of 16.41. This means the market is willing to pay $16.41 for every dollar of Medtronic PLC’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Medtronic PLC (MDT) as of Jan 09 2026?

As of Jan 09 2026, Medtronic PLC (MDT) has a Forward P/S ratio of 3.33. This means the market is valuing MDT at $3.33 for every dollar of expected revenue over the next 12 months.

MDT Valuation