Medtronic plc manufactures and sells device-based medical therapies worldwide. The company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group and Diabetes Group. The company was founded in 1949 and is based in Dublin, Ireland.
MDT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MDT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Medtronic plc ranked in the 38th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for MDT, they are:
Medtronic plc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than merely 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 7. This value is greater than just 22.98% stocks in the Healthcare sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BDX, NVS, HRC, USPH, and LCI can be thought of as valuation peers to MDT, in the sense that they are in the Healthcare sector and have a similar price forecast based on DCF valuation.
U.S. companies are expanding and opening new plants in the Dominican Republic as they diversify their supply chains, moves that will help offset the economic impact of the new coronavirus pandemic, the Dominican economy minister said. Juan Ariel Jimenez told Reuters he expected the Caribbean island nation to boost exports by 5 to 10% in 2021, aided in part by a rise in gold prices, as well as increased production of medical devices and equipment, a key growth sector. Two medical equipment makers, Florida-based Jabil and the U.S. unit of Italy's privately-held COSMED, began operations in the Dominican Republic in recent months, said Silvia Cochon of the Dominican National Free Zones Council.
DUBLIN--(BUSINESS WIRE)--The "Nerve Repair and Regeneration Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering. The Nerve Repair and Regeneration Market are expected to register a CAGR of 12.2% during the forecast period. The market is expected to show growth due to the growing incidence of nerve injuries and high prevalence of neurological disorders, technological advancements for nerve repair and regeneration and the rise in health