Is Medtronic Plc overvalued or undervalued?

As of 19 August 2025, the valuation grade for Medtronic Plc has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. The key ratios include a P/E ratio of 21, an EV to EBITDA of 15.42, and a PEG ratio of 1.00, which suggest that the stock is priced in line with its earnings growth potential.
In comparison to its peers, Medtronic Plc's P/E ratio of 21.47 is higher than Abbott Laboratories' 18.36 but lower than Thermo Fisher Scientific's 30.06, indicating a competitive positioning within the industry. Despite its fair valuation, Medtronic's recent stock performance shows a YTD return of 19.67%, outperforming the S&P 500's 12.22%, although it lags behind the index over longer periods, particularly with a 5Y return of -11.16% compared to the S&P 500's 96.61%.