MDT PE Ratio 2026
Medtronic Plc Price to Earnings Analysis
Current P/E Ratio
27.28
Stock Price
$97.66
EPS (TTM)
$3.58
Valuation
Overvalued
PE Ratio Breakdown
Trailing P/E (TTM)
27.28
Based on last 12 months earnings
Health Care Industry Avg
20.00
MDT is 36% above industry
What Does MDT P/E Ratio Mean?
Current Valuation
At a P/E ratio of 27.28, investors are paying $27.28 for every $1 of MDT's annual earnings. This high P/E suggests investors expect strong future earnings growth or that the stock is trading at a premium.
Industry Comparison
Compared to the Health Care industry average P/E of 20, MDT is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
PE Ratio Calculator
How P/E ratio changes with different stock prices:
At $78.13
P/E: 21.82
20% lower
At $87.89
P/E: 24.55
10% lower
At $107.43
P/E: 30.01
10% higher
At $117.19
P/E: 32.74
20% higher
Get Complete MDT Valuation Analysis
DCF model, comparable companies, and AI-powered insights
Frequently Asked Questions
What is MDT PE ratio?
MDT (Medtronic Plc) has a price-to-earnings (P/E) ratio of 27.28. This means investors are paying $27.28 for every $1 of MDT's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare MDT's P/E of 27.28 to its industry average and historical range.
Is MDT overvalued based on PE ratio?
MDT's P/E ratio of 27.28 is above the Health Care industry average of approximately 20. This suggests the stock may be trading at a premium, though high P/E ratios can be justified by strong growth prospects.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). MDT's trailing P/E is 27.28. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For MDT, with a current price of $97.66 and EPS of $3.58, the P/E ratio is 27.28. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG ratio adjusts P/E for growth. PEG = P/E / Earnings Growth Rate. A PEG below 1.0 typically indicates good value. Calculate MDT's PEG ratio when earnings growth data is available.