With a daily loss of -0.94 %, a 3-month gain of 1.51%, and Earnings Per Share (EPS) of 2.71, is Medtronic PLC (MDT, Financial) modestly undervalued? This article delves into the intrinsic value of Medtronic PLC (MDT), offering a comprehensive analysis of its financial health, profitability, and growth prospects. Let's explore.
Company Overview
As one of the largest medical-device companies, Medtronic PLC (MDT, Financial) is renowned for its innovative therapeutic medical devices for chronic diseases. The company's diverse portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, and surgical tools. With a significant market presence, Medtronic PLC (MDT) markets its products to healthcare institutions and physicians globally, with foreign sales accounting for roughly 50% of total sales.
Currently, Medtronic PLC (MDT, Financial) trades at $81.42 per share, with a market cap of $108.40 billion. However, the GF Value, an estimation of fair value, stands at $106.43. This discrepancy paves the way for a more profound exploration of the company's value, ingeniously integrating financial assessment with essential company details.
Understanding the GF Value
The GF Value is a proprietary measure that represents the intrinsic value of a stock. It's calculated based on historical trading multiples, a GuruFocus adjustment factor based on past performance and growth, and future business performance estimates. The GF Value Line on our summary page gives an overview of the fair value at which the stock should ideally be traded.
According to GuruFocus Value calculation, the stock of Medtronic PLC (MDT, Financial) is believed to be modestly undervalued. This suggests that the long-term return of Medtronic PLC's stock is likely to be higher than its business growth.
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