DCF Tool

MDT

Medtronic plc is an American medical device company. The companys operational and executive headquarters are in Minneapolis, Minnesota, and its legal headquarters are in Ireland due to its acquisition of Irish-based Covidien in 2015.
Analysis Results
Intrinsic Value $123.74
Latest Price $80.13
Relative Value 35% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 2.8%.

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 2.8%, 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)
2024 6.8 6.41
2025 6.99 6.21
2026 7.18 6.02
2027 7.38 5.83
2028 7.59 5.65
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 191 billion. This corresponds to a present value of 134 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 30.1 billion. Adding in the terminal value gives a total present value of 164 billion.

There are presently 1.33 billion outstanding shares, so the intrinsic value per share is 123.74.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 21,674,000,000
Current Cash 7,959,000,000
Current Liabilities 9,052,000,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 4,683,000,000
Change in NCWC 850,000,000
EBIT 5,830,000,000
Tax Provision 1,580,000,000
Depreciation and Amortization 2,697,000,000
Capital Expenditure -1,459,000,000
Unlevered Free Cash Flow 6,200,736,763
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

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