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Medtronic, Inc. (NYSE:MDT)
Shiller P/E Ratio
19.00 (As of Today)

As of today, Medtronic, Inc.'s current share price is $58.55. Medtronic, Inc.'s E10 for the quarter that ended in Jan. 2014 was $3.08. Medtronic, Inc.'s Shiller P/E Ratio for today is 19.00.

MDT' s 10-Year Shiller P/E Ratio Range
Min: 12.18   Max: 59.83
Current: 19

12.18
59.83

During the past 13 years, Medtronic, Inc.'s highest Shiller P/E Ratio was 59.83. The lowest was 12.18. And the median was 21.40.

MDT's Shiller P/E Ratiois ranked higher than
88% of the 141 Companies
in the Global Medical Devices industry.

( Industry Median: 27.00 vs. MDT: 19.00 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Medtronic, Inc.'s adjusted earnings per share data for the three months ended in Jan. 2014 was $0.758. Since most companies do not have as long as 10 years history, here we use 6 years to calculate. Add all the adjusted EPS for the past 6 years together and divide 6 will get our E10, which is $3.08 for the trailing six years ended in Jan. 2014.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Medtronic, Inc.'s Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=58.55/3.08
=19.01

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Medtronic, Inc.'s E10 for the fiscal year that ended in Apr13 is calculated as:

For example, Medtronic, Inc.'s adjusted earnings per share data for the three months ended in Jan. 2014 was:

Adj_EPS=Earnigns per Share/CPI of Jan. 2014*CPI of Current
=0.75/233.916*236.511
=0.758

Since most companies do not have as long as 10 years history, here we use 6 years to calculate:

Current CPI = 236.511.

Medtronic, Inc. Quarterly Data

201110201201201204201207201210201301201304201307201310201401
per share eps 0.8200.8800.9460.8300.6300.9700.9460.9300.8900.750
CPI 226.421226.665230.085229.104231.317230.280232.531233.596233.546233.916
Adj_EPS 0.8570.9180.9720.8570.6440.9960.9620.9420.9010.758
200904200907200910201001201004201007201010201101201104201107
per share eps 0.0920.4000.7800.7500.8640.7600.5200.8600.7210.770
CPI 213.240215.351216.177216.687218.009218.011218.711220.223224.906225.922
Adj_EPS 0.1020.4390.8530.8190.9370.8240.5620.9240.7580.806
200804200807200810200901
per share eps 0.7180.6400.4800.620
CPI 214.823219.964216.573211.143
Adj_EPS 0.7900.6880.5240.694

Add all the adjusted EPS together and divide 6 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Medtronic, Inc. Annual Data

Apr04Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13
ShillerPE 49.0742.5934.1630.3324.6015.9319.7116.8714.1816.49

Medtronic, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
ShillerPE 13.4314.6814.1814.4015.0916.7916.4919.0319.5118.34
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