Switch to:
Medtronic PLC (NYSE:MDT)
Median P/S Value
$64.29 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Medtronic PLC's revenue per share for the trailing twelve months (TTM) ended in Apr. 2015 was $18.06. Medtronic PLC's 10-Year median P/S ratio is 3.56. Therefore, the Median P/S Value for today is $64.29.

As of today, Medtronic PLC's share price is $73.56. Medtronic PLC's median P/S value is $64.29. Therefore, Medtronic PLC's Price to Median P/S Value Ratio for today is 1.15.

MDT' s 10-Year Price to Median P/S Value Range
Min: 0.69   Max: 3.55
Current: 1.15

0.69
3.55

During the past 13 years, the highest Price to Median P/S Value Ratio of Medtronic PLC was 3.55. The lowest was 0.69. And the median was 1.66.

MDT's Price to Median P/S Value is ranked lower than
59% of the 264 Companies
in the Global Medical Devices industry.

( Industry Median: 1.03 vs. MDT: 1.15 )

Definition

Medtronic PLC's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=18.06*3.56
=64.29

10-Year Median P/S Ratio is 3.56.
Medtronic PLC's revenue per share for the trailing twelve months (TTM) ended in Apr. 2015 was 4.25 (Jul. 2014 ) + 4.4 (Oct. 2014 ) + 4.34 (Jan. 2015 ) + 5.07 (Apr. 2015 ) = $18.06.

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


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company’s value.

Medtronic PLC's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=73.56/64.29
=1.14

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


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Intrinsic Value (DCF Projected), Intrinsic Value (DCF), Intrinsic Value (DE), Graham Number, GAVA


Historical Data

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

Medtronic PLC Annual Data

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
medpsvalue 33.0437.7042.1546.1450.7751.6654.3657.4659.7464.29

Medtronic PLC Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
medpsvalue 56.5357.4657.9658.5659.2059.7460.6361.5262.3064.29
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK