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Medtronic PLC (NYSE:MDT)
Intrinsic Value: Projected FCF
$63.21 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today, Medtronic PLC's projected FCF intrinsic value is $63.21. The stock price of Medtronic PLC is $72.07. Therefore, Medtronic PLC's Price to Intrinsic Value: Projected FCF Ratio of today is 1.1.

MDT' s Price to Intrinsic Value: Projected FCF Range Over the Past 10 Years
Min: 0.76   Max: 6.95
Current: 1.14

0.76
6.95

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Medtronic PLC was 6.95. The lowest was 0.76. And the median was 1.41.

MDT's Price to Intrinsic Value: Projected FCF is ranked higher than
77% of the 124 Companies
in the Global Medical Devices industry.

( Industry Median: 1.97 vs. MDT: 1.14 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of total equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding


Here Medtronic PLC's FCF(6 year avg) is calculate as

Medtronic PLC Annual Data

201104201204201304201404201504201604
total_freecashflow 3,2403,9864,4854,5634,3314,172

Add all the adjusted EPS together and divide 6 will get Medtronic PLC's FCF(6 year avg) = $4,295.50.

Medtronic PLC's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Oct16)*0.8)/Shares Outstanding
=(11.1455672454*4295.5+50186*0.8)/1392.500
=63.21

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy medium after taking the above ideas into consideration. Learn more here.

Medtronic PLC's Price to Intrinsic Value: Projected FCF Ratio for today is calculated as

Price to Intrinsic Value: Projected FCF=Share Price/Intrinsic Value: Projected FCF
=72.07/63.2133458548
=1.14

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Intrinsic Value: DCF (Earnings Based), Intrinsic Value: DCF (FCF Based), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Medtronic PLC Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
Projected FCF 30.8834.8935.9242.0443.0549.2757.8157.7676.0961.49

Medtronic PLC Semi-Annual Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
Projected FCF 57.7958.2760.2276.0958.4659.4159.5261.4962.3063.21
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