Using the industry peer median P/E multiple (trailing + forward), Medtronic plc (MDT) has a fair value of $123.56 based on 8 comparable companies in the Medical - Devices industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Medtronic plcMDT | 113,427 | 24.4x | 15.6x |
| Stryker CorporationSYK | 127,271 | 39.6x | 22.2x |
| Bristol-Myers Squibb CompanyBMY | 121,119 | 17.2x | 9.5x |
| Vertex Pharmaceuticals IncorporatedVRTX | 115,820 | 29.8x | 23.6x |
| HCA Healthcare, Inc.HCA | 108,040 | 17.0x | 16.0x |
| McKesson CorporationMCK | 107,034 | 33.7x | 22.2x |
| Boston Scientific CorporationBSX | 105,082 | 36.5x | 20.4x |
| CVS Health CorporationCVS | 91,014 | 51.5x | 10.0x |
| Edwards Lifesciences CorporationEW | 47,986 | 45.1x | 27.8x |
| Industry Median | 35.1x | 21.3x | |
| (*) Profit after tax | 4,662 | 7,286 | |
| Equity Value | 163,681 | 155,077 | |
| (/) Outstanding shares | 1,290 | 1,290 | |
| Fair Price | $127 | $120 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.