DCF Tool

MDT

Medtronic Plc – Surgical and Medical Instrument Manufacturing
Medtronic plc, headquartered in Dublin, Ireland, is among the world's largest medical technology, services and solutions companies - alleviating pain, restoring health and extending life for millions of people around the world. Medtronic employs more than 90,000 people worldwide, serving physicians, hospitals and patients in more than 150 countries. The company is focused on collaborating with stakeholders around the world to take healthcare Further, Together.
Analysis Results
Intrinsic Value $131.99
Latest Price $80.75
Relative Value 39% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 3.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 7.13 6.72
2024 7.4 6.57
2025 7.68 6.43
2026 7.98 6.29
2027 8.28 6.15
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 205 billion. This corresponds to a present value of 143 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 32.2 billion. Adding in the terminal value gives a total present value of 175 billion.

There are presently 1.33 billion outstanding shares, so the intrinsic value per share is 131.99.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 23,058,000,000
Current Cash 10,573,000,000
Current Liabilities 12,394,000,000
Current Debt 3,742,000,000
Non-Cash Working Capital (NCWC) 3,833,000,000
Change in NCWC 601,000,000
EBIT 5,908,000,000
Tax Provision 455,000,000
Depreciation and Amortization 2,707,000,000
Capital Expenditure -1,368,000,000
Unlevered Free Cash Flow 7,360,841,609
Current Assets 22,547,000,000
Current Cash 10,817,000,000
Current Liabilities 8,509,000,000
Current Debt 11,000,000
Non-Cash Working Capital (NCWC) 3,232,000,000
Change in NCWC -261,000,000
EBIT 4,895,000,000
Tax Provision 266,000,000
Depreciation and Amortization 2,702,000,000
Capital Expenditure -1,355,000,000
Unlevered Free Cash Flow 5,646,707,317
Current Assets 22,031,000,000
Current Cash 10,948,000,000
Current Liabilities 10,366,000,000
Current Debt 2,776,000,000
Non-Cash Working Capital (NCWC) 3,493,000,000
Change in NCWC -992,000,000
EBIT 5,222,000,000
Tax Provision -751,000,000
Depreciation and Amortization 2,663,000,000
Capital Expenditure -1,213,000,000
Unlevered Free Cash Flow 5,680,000,000
Current Assets 21,967,000,000
Current Cash 9,848,000,000
Current Liabilities 8,472,000,000
Current Debt 838,000,000
Non-Cash Working Capital (NCWC) 4,485,000,000
Change in NCWC 758,000,000
EBIT 6,632,000,000
Tax Provision 547,000,000
Depreciation and Amortization 2,659,000,000
Capital Expenditure -1,134,000,000
Unlevered Free Cash Flow 8,216,961,901
Current Assets 22,980,000,000
Current Cash 11,227,000,000
Current Liabilities 10,084,000,000
Current Debt 2,058,000,000
Non-Cash Working Capital (NCWC) 3,727,000,000
Change in NCWC -738,000,000
EBIT 6,848,000,000
Tax Provision 2,580,000,000
Depreciation and Amortization 2,644,000,000
Capital Expenditure -1,068,000,000
Unlevered Free Cash Flow 4,572,724,229
Current Assets 24,873,000,000
Current Cash 13,708,000,000
Current Liabilities 14,220,000,000
Current Debt 7,520,000,000
Non-Cash Working Capital (NCWC) 4,465,000,000
Change in NCWC -329,000,000
EBIT 6,535,000,000
Tax Provision 578,000,000
Depreciation and Amortization 2,917,000,000
Capital Expenditure -1,254,000,000
Unlevered Free Cash Flow 7,048,219,904
Current Assets 23,600,000,000
Current Cash 12,634,000,000
Current Liabilities 7,165,000,000
Current Debt 993,000,000
Non-Cash Working Capital (NCWC) 4,794,000,000
Change in NCWC 169,000,000
EBIT 6,067,000,000
Tax Provision 798,000,000
Depreciation and Amortization 2,820,000,000
Capital Expenditure -1,046,000,000
Unlevered Free Cash Flow 6,893,425,738
Current Assets 30,844,000,000
Current Cash 19,480,000,000
Current Liabilities 9,173,000,000
Current Debt 2,434,000,000
Non-Cash Working Capital (NCWC) 4,625,000,000
Change in NCWC 1,602,000,000
EBIT 4,675,000,000
Tax Provision 811,000,000
Depreciation and Amortization 1,306,000,000
Capital Expenditure -571,000,000
Unlevered Free Cash Flow 5,924,385,255
Current Assets 21,210,000,000
Current Cash 14,241,000,000
Current Liabilities 5,559,000,000
Current Debt 1,613,000,000
Non-Cash Working Capital (NCWC) 3,023,000,000
Change in NCWC -718,000,000
EBIT 4,999,000,000
Tax Provision 640,000,000
Depreciation and Amortization 850,000,000
Capital Expenditure -396,000,000
Unlevered Free Cash Flow 3,871,475,033
Current Assets 17,793,000,000
Current Cash 11,071,000,000
Current Liabilities 3,891,000,000
Current Debt 910,000,000
Non-Cash Working Capital (NCWC) 3,741,000,000
Change in NCWC -599,000,000
EBIT 4,878,000,000
Tax Provision 784,000,000
Depreciation and Amortization 819,000,000
Capital Expenditure -457,000,000
Unlevered Free Cash Flow 3,741,364,149
Current Assets 9,515,000,000
Current Cash 2,592,000,000
Current Liabilities 5,857,000,000
Current Debt 3,274,000,000
Non-Cash Working Capital (NCWC) 4,340,000,000
Change in NCWC 642,000,000
EBIT 4,847,000,000
Tax Provision 730,000,000
Depreciation and Amortization 833,000,000
Capital Expenditure -499,000,000
Unlevered Free Cash Flow 4,969,366,706

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.