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Medtronic PLC (NYSE:MDT)
Shiller PE Ratio
29.34 (As of Today)

As of today, Medtronic PLC's current share price is $85.09. Medtronic PLC's E10 for the quarter that ended in Apr. 2017 was $2.90. Medtronic PLC's Shiller P/E Ratio for today is 29.34.

MDT' s Shiller PE Ratio Range Over the Past 10 Years
Min: 14.42   Max: 43.79
Current: 29.38

14.42
43.79

During the past 13 years, Medtronic PLC's highest Shiller P/E Ratio was 43.79. The lowest was 14.42. And the median was 23.12.

MDT's Shiller PE Ratio is ranked higher than
82% of the 50 Companies
in the Global Medical Devices industry.

( Industry Median: 49.41 vs. MDT: 29.38 )

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 PLC's adjusted earnings per share data for the three months ended in Apr. 2017 was $0.840. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $2.90 for the trailing ten years ended in Apr. 2017.


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 PLC's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=85.09/2.90
=29.34

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

Medtronic PLC's E10 for the fiscal year that ended in Apr17 is calculated as:

For example, Medtronic PLC's adjusted earnings per share data for the three months ended in Apr. 2017 was:

Adj_EPS=Earnigns per Share/CPI of Apr. 2017 (Change)*Current CPI (Apr. 2017)
=0.84/244.176*244.176
=0.840

Current CPI (Apr. 2017) = 244.176.

Medtronic PLC Quarterly Data

201501201504201507201510201601201604201607201610201701201704
per share eps 0.980-0.2700.5700.3600.7700.7800.6600.8000.5900.840
CPI 233.707236.599238.654237.838236.916239.261240.628241.729242.839244.176
Adj_EPS 1.024-0.2790.5830.3700.7940.7960.6700.8080.5930.840
201207201210201301201304201307201310201401201404201407201410
per share eps 0.8300.6300.9700.9400.9300.8900.7500.4400.8700.830
CPI 229.104231.317230.280232.531233.596233.546233.916237.072238.250237.433
Adj_EPS 0.8850.6651.0290.9870.9720.9310.7830.4530.8920.854
201001201004201007201010201101201104201107201110201201201204
per share eps 0.7500.8600.7600.5200.8600.7200.7700.8200.8800.940
CPI 216.687218.009218.011218.711220.223224.906225.922226.421226.665230.085
Adj_EPS 0.8450.9630.8510.5810.9540.7820.8320.8840.9480.998
200707200710200801200804200807200810200901200904200907200910
per share eps 0.5900.5800.0700.7100.6400.4800.6200.1000.4000.780
CPI 208.299208.936211.080214.823219.964216.573211.143213.240215.351216.177
Adj_EPS 0.6920.6780.0810.8070.7100.5410.7170.1150.4540.881

Add all the adjusted EPS together and divide 10 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 local exchange's currency.

Medtronic PLC Annual Data

Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16Apr17
ShillerPE 31.4819.0723.3119.8115.8517.9121.3426.4627.8828.69

Medtronic PLC Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
ShillerPE 25.2126.4627.3526.4527.0627.8830.5128.1926.2628.69
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