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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Medtronic plc. To summarize, we found that Medtronic plc ranked in the 23th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for MDT, they are:
Medtronic plc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 24.65% of tickers in our DCF set.
MDT's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 24.65% of tickers in our DCF set.
As a business, Medtronic plc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Healthcare), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MDT, try SNN, BAX, GMED, HOLX, and OFIX.
Medtronic (MDT) wholly-owned subsidiary Medtronic Global Holdings has closed senior notes offering of €6.25B.All of Medtronic Luxco's obligations under the notes are fully and unconditionally guaranteed by the Company and Medtronic, a wholly-owned indirect subsidiary of Medtronic Luxco, on a senior unsecured basis. Net proceeds of ~€6.2B will be used...
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