Latest Ratios: P/E Ratio 23.2x · EV/EBITDA 14.5x · ROE 9.8%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $110.9B | $107.3B | $109.3B | $106.7B | $121.2B | $141.0B | $177.3B | $131.9B | $120.6B | $109.6B | $115.6B |
| Enterprise Value | $136.9B | $133.3B | $135.6B | $130.5B | $144.0B | $161.4B | $200.1B | $152.6B | $141.5B | $131.7B | $144.0B |
| P/E Ratio → | 23.16 | 22.34 | 23.48 | 29.07 | 32.25 | 27.98 | 49.22 | 27.58 | 26.04 | 35.30 | 28.75 |
| P/S Ratio | 3.05 | 2.95 | 3.26 | 3.30 | 3.88 | 4.45 | 5.89 | 4.56 | 3.95 | 3.66 | 3.89 |
| P/B Ratio | 2.22 | 2.14 | 2.27 | 2.12 | 2.35 | 2.68 | 3.44 | 2.59 | 2.40 | 2.16 | 2.29 |
| P/FCF | 20.44 | 19.78 | 21.09 | 20.53 | 26.47 | 23.59 | 36.29 | 21.91 | 20.53 | 30.32 | 20.55 |
| P/OCF | 15.13 | 14.64 | 15.52 | 15.73 | 20.07 | 19.20 | 28.41 | 18.23 | 17.21 | 23.41 | 16.80 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.67 | 4.04 | 4.03 | 4.61 | 5.09 | 6.64 | 5.28 | 4.63 | 4.40 | 4.85 |
| EV / EBITDA | 14.53 | 14.15 | 15.38 | 16.75 | 17.60 | 19.08 | 27.84 | 20.47 | 15.85 | 14.19 | 17.35 |
| EV / EBIT | 21.17 | 19.46 | 21.34 | 23.48 | 24.01 | 26.60 | 41.51 | 29.64 | 21.30 | 19.31 | 25.29 |
| EV / FCF | — | 24.57 | 26.16 | 25.09 | 31.45 | 27.00 | 40.95 | 25.34 | 24.09 | 36.43 | 25.60 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 65.0% | 65.0% | 65.3% | 65.3% | 65.7% | 68.0% | 65.2% | 67.4% | 70.0% | 69.7% | 68.7% |
| Operating Margin | 17.8% | 17.8% | 17.8% | 15.9% | 17.6% | 18.2% | 14.9% | 16.6% | 20.5% | 22.2% | 18.1% |
| Net Profit Margin | 13.2% | 13.2% | 13.9% | 11.4% | 12.0% | 15.9% | 12.0% | 16.6% | 15.2% | 10.4% | 13.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.8% | 9.8% | 9.4% | 7.2% | 7.2% | 9.7% | 7.0% | 9.5% | 9.2% | 6.1% | 7.9% |
| ROA | 5.2% | 5.2% | 5.1% | 4.1% | 4.1% | 5.5% | 3.9% | 5.3% | 5.1% | 3.2% | 4.0% |
| ROIC | 6.4% | 6.4% | 6.0% | 5.2% | 5.6% | 5.8% | 4.6% | 5.0% | 6.5% | 6.6% | 5.1% |
| ROCE | 8.1% | 8.1% | 7.5% | 6.4% | 6.8% | 7.1% | 5.4% | 5.9% | 7.7% | 8.0% | 6.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.56 | 0.56 | 0.59 | 0.50 | 0.47 | 0.46 | 0.51 | 0.49 | 0.50 | 0.51 | 0.66 |
| Debt / EBITDA | 2.97 | 2.97 | 3.23 | 3.21 | 2.98 | 2.85 | 3.67 | 3.33 | 2.84 | 2.77 | 4.02 |
| Net Debt / Equity | — | 0.52 | 0.54 | 0.47 | 0.44 | 0.39 | 0.44 | 0.41 | 0.42 | 0.43 | 0.56 |
| Net Debt / EBITDA | 2.76 | 2.76 | 2.98 | 3.05 | 2.79 | 2.41 | 3.17 | 2.77 | 2.34 | 2.38 | 3.43 |
| Debt / FCF | — | 4.79 | 5.07 | 4.57 | 4.98 | 3.41 | 4.67 | 3.43 | 3.56 | 6.11 | 5.05 |
| Interest Coverage | 9.58 | 9.58 | 8.72 | 7.73 | 9.43 | 10.98 | 5.21 | 4.71 | 4.60 | 5.95 | 5.21 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.13 | 2.13 | 1.85 | 2.03 | 2.39 | 1.86 | 2.65 | 2.13 | 2.59 | 2.28 | 1.74 |
| Quick Ratio | 1.62 | 1.62 | 1.42 | 1.55 | 1.81 | 1.49 | 2.14 | 1.72 | 2.15 | 1.92 | 1.51 |
| Cash Ratio | 0.79 | 0.79 | 0.70 | 0.74 | 0.88 | 0.85 | 1.27 | 1.06 | 1.16 | 1.11 | 0.96 |
| Asset Turnover | — | 0.39 | 0.37 | 0.36 | 0.34 | 0.35 | 0.32 | 0.32 | 0.34 | 0.33 | 0.30 |
| Inventory Turnover | 2.14 | 2.14 | 2.12 | 2.15 | 2.03 | 2.20 | 2.43 | 2.23 | 2.44 | 2.53 | 2.78 |
| Days Sales Outstanding | — | 66.68 | 70.91 | 69.11 | 70.11 | 63.94 | 66.20 | 58.64 | 74.32 | 72.96 | 68.69 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.3% | 3.4% | 3.3% | 3.4% | 3.0% | 2.4% | 1.8% | 2.2% | 2.2% | 2.3% | 2.1% |
| Payout Ratio | 75.8% | 75.8% | 77.0% | 99.7% | 96.2% | 67.1% | 86.5% | 60.4% | 58.2% | 80.3% | 59.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 4.5% | 4.3% | 3.4% | 3.1% | 3.6% | 2.0% | 3.6% | 3.8% | 2.8% | 3.5% |
| FCF Yield | 4.9% | 5.1% | 4.7% | 4.9% | 3.8% | 4.2% | 2.8% | 4.6% | 4.9% | 3.3% | 4.9% |
| Buyback Yield | 0.9% | 1.0% | 3.0% | 2.0% | 0.5% | 1.8% | 0.4% | 1.0% | 2.4% | 2.0% | 3.1% |
| Total Shareholder Yield | 4.2% | 4.4% | 6.2% | 5.4% | 3.5% | 4.2% | 2.1% | 3.2% | 4.6% | 4.3% | 5.1% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.3B | $1.3B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MDT stock.
Medtronic plc's current P/E ratio is 23.2x. The historical average is 32.6x. This places it at the 27th percentile of its historical range.
Medtronic plc's current EV/EBITDA is 14.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.8x.
Medtronic plc's return on equity (ROE) is 9.8%. The historical average is 16.6%.
Based on historical data, Medtronic plc is trading at a P/E of 23.2x. This is at the 27th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Medtronic plc's current dividend yield is 3.27% with a payout ratio of 75.8%.
Medtronic plc has 65.0% gross margin and 17.8% operating margin. Operating margin between 10-20% is typical for established companies.
Medtronic plc's Debt/EBITDA ratio is 3.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Margin compression from competitive investments
Metrics are mathematically derived from official filings.
Valuation Reflects Growth Premium Over Peers
Medtronic's forward P/E of 15.76 and EV/EBITDA of 11.22 appear to price in a significant growth re-rating, as the forward multiples are at a notable discount to its trailing figures and peer averages like Abbott's 18.09 EV/EBITDA.
The substantial discount between the trailing P/E of 25.25 and the forward P/E of 15.76 suggests the market is pricing in a sharp acceleration in earnings growth, consistent with the recent 8.43% revenue growth and raised guidance. However, the PEG ratio of 3.61 indicates this growth is being priced at a premium relative to its own earnings expansion rate. Compared to peers like Stryker (36.09 P/E) and Boston Scientific (24.64 P/E), Medtronic trades at a lower multiple, which may reflect its more mature, diversified portfolio versus their higher-growth, focused profiles.
Gross Margin Volatility Masks Underlying Power
While the reported gross margin of 65.0% in Q1 2027 is strong, its extreme volatility from 57.7% to 75.9% over ten quarters suggests significant product mix or accounting inconsistencies that obscure the true earning power of the core business.
The operating margin of 18.1% in the latest quarter is an improvement but remains below historical peaks, indicating that revenue growth is being fueled by increased SG&A and R&D spending, which is compressing operating leverage. The net margin of 15.1% appears more stable, but the wide swings in gross margin imply that non-recurring items or segment mix shifts are heavily influencing reported profitability. Investors should focus on the trend in adjusted operating margin to assess whether the company is achieving sustainable scale benefits.
Returns on Capital Show Modest Recovery
ROIC has improved from 1.1% in Q4 2024 to 1.7% in Q1 2027, but this level remains significantly below the cost of capital, suggesting the company is not yet generating excess returns for shareholders despite recent growth acceleration.
The ROE of 2.9% and ROA of 1.6% in the latest quarter are also low, indicating that the substantial asset base, particularly the $43.2 billion in goodwill, is diluting returns. The improvement in ROIC appears driven more by margin stabilization than by a meaningful increase in asset turnover, which has remained flat at 0.10. This pattern suggests the company's capital allocation is still in a transition phase, with recent growth not yet translating into efficient capital deployment.
Working Capital Swings Dominate Cash Cycle
The cash conversion cycle has dramatically improved from 169 days in Q4 2024 to 40 days in Q1 2027, driven primarily by a reduction in days inventory outstanding from 171 to 82 days, which appears to be a significant operational shift.
This sharp reduction in DIO suggests either a major improvement in inventory management or a change in business mix toward less inventory-intensive products. However, the volatility in CCC over the period, from a high of 173 days to a low of 30 days, indicates this efficiency is not yet stable. The current DSO of 34 days and DPO of 77 days show the company is collecting from customers faster than it pays suppliers, which is a favorable position, but the sustainability of this dynamic requires monitoring.
Leverage Stable but Interest Coverage Improving
The Debt/EBITDA ratio of 14.40 in Q1 2027 is elevated, but the interest coverage ratio has improved to 10.51x, suggesting that while the absolute debt load is high, the company's earnings are more than sufficient to service its interest obligations.
The D/E ratio of 0.55 is higher than peers like Abbott (0.29) and Edwards Lifesciences (0.07), indicating a more leveraged capital structure. However, the improving interest coverage trend from 5.23x in Q4 2024 to 10.51x shows that earnings growth is outpacing interest expense growth. This dynamic reduces near-term refinancing risk, but the high Debt/EBITDA multiple warrants monitoring, especially if margin expansion stalls and EBITDA growth slows.
The Misleading Signal of Low D/E Ratio
The reported Debt/Equity ratio of 0.55 is commonly misapplied to Medtronic because it significantly understates the company's true leverage by excluding substantial lease liabilities and pension obligations from the calculation.
For a capital-intensive medtech company with significant operating leases for equipment and facilities, the D/E ratio is a poor measure of financial risk. The more relevant metric is Debt/EBITDA, which at 14.40 provides a clearer picture of the company's ability to service its total obligations. Analysts should instead focus on the interest coverage ratio and total debt to EBITDA to assess leverage, as the D/E ratio's exclusion of off-balance-sheet liabilities creates a misleadingly conservative view of the company's capital structure.