GURUFOCUS.COM » STOCK LIST » USA » NYSE » Medtronic PLC (NYSE:MDT) » Definitions » Graham Number
Switch to:

Medtronic Graham Number

: $N/A (As of Jul. 2022)
View and export this data going back to 1980. Start your Free Trial

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2022-10-01), the stock price of Medtronic is $80.75. Medtronic's graham number for the quarter that ended in Jul. 2022 was $N/A. Therefore, Medtronic's Price to Graham Number ratio for today is N/A.

The historical rank and industry rank for Medtronic's Graham Number or its related term are showing as below:

During the past 13 years, the highest Price to Graham Number ratio of Medtronic was 11.20. The lowest was 0.59. And the median was 3.36.

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Medtronic Graham Number Historical Data

The historical data trend for Medtronic's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Medtronic Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Medtronic Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
Graham Number Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison

For the Medical Devices subindustry, Medtronic's Graham Number, along with its competitors' market caps and Graham Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Medtronic Graham Number Distribution

For the Medical Devices & Instruments industry and Healthcare sector, Medtronic's Graham Number distribution charts can be found below:

* The bar in red indicates where Medtronic's Graham Number falls into.



Medtronic Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Medtronic's Graham Number for the fiscal year that ended in Apr. 2022 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*-2.664*3.73)
=N/A

Medtronic's Graham Number for the quarter that ended in Jul. 2022 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*-2.577*3.87)
=N/A

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Medtronic  (NYSE:MDT) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Medtronic's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jul. 2022 )
=80.75/N/A
=N/A

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Medtronic Graham Number Related Terms

Thank you for viewing the detailed overview of Medtronic's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Medtronic Business Description

Medtronic logo
Address
Lower Hatch Street, 20 On Hatch, Dublin, IRL, 2
One of the largest medical device companies, Medtronic develops and manufactures therapeutic medical devices for chronic diseases. Its portfolio includes pacemakers, defibrillators, heart valves, stents, insulin pumps, spinal fixation devices, neurovascular products, advanced energy, and surgical tools. The company markets its products to healthcare institutions and physicians in the United States and overseas. Foreign sales account for almost 50% of the company's total sales.
Executives
Fong Ivan K officer: EVP GENERAL COUNSEL & SECR 3M CENTER ST. PAUL MN 55144-1000
Kirk Jennifer M officer: Chief Accounting Officer 5 GREENWAY PLAZA SUITE 110 HOUSTON TX 77046
Lofton Kevin E director GILEAD SCIENCES, INC. 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Wall Brett A. officer: EVP & Group Pres Restora Thera 710 MEDTRONIC PARKWAY LC300 MINNEAPOLIS MN 55432
Salmon Sean officer: EVP & Group President Diabetes MEDTRONIC PLC, 710 MEDTRONIC PARKWAY LC300 MINNEAPOLIS MN 55432
Goldsmith Andrea Jo director 1220 AUGUSTA DRIVE SUITE 600 HOUSTON TX 77057
Liddicoat John R officer: EVP & President of Americas MEDTRONIC PLC 710 MEDTRONIC PKWY, MS LC300 MINNEAPOLIS MN 55432
White Robert John officer: EVP & President MITG MEDTRONIC PLC 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432
Parkhill Karen L officer: EVP & Chief Financial Officer 1717 MAIN STREET, MC 6402 DALLAS TX 75201
Reddy Preetha director APOLLO HOSPITALS 21 GREAMS LN, OFF GREAMS RD CHENNAI K7 600006
Ellis Gary Lee officer: EVP & Chief Financial Officer THE TORO COMPANY 8111 LYNDALE AVENUE SOUTH BLOOMINGTON MN 55420
Hanson Bryan C officer: EVP AND PRESIDENT, COVIDIEN ZIMMER BIOMET HOLDINGS 345 E. MAIN STREET WARSAW IN 46580
Hakami Hooman officer: EVP & Group President Diabetes 710 MEDTRONIC PKWY MSLC300 MINNEAPOLIS MN 55432
Oconnell Christopher J officer: See Remarks MEDTRONIC, INC. 710 MEDTRONIC PKWY MINNEAPOLIS MN 55432
Lenehan James T director C/O MEDTRONIC INC 710 MEDTRONIC PKWY MS LC300 MINNEAPOLIS MN 55432

Medtronic Headlines

From GuruFocus

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)