Medtronic PLC, the American medical device company based legally in Ireland is undervalued according to Wolfteam Ltd.
Medtronic's intrinsic value is 140 billion USD, compared to Medtronic's current market capitalization of 109.568 billion USD.
Medtronic's net profit margin is circa 15 % almost every calendar reported year in the trailing 5 calendar years. Medtronic is very profitable as most medical companies are. Medtronic's product base caters to vital and long lasting medical conditions like heart problems, diabetes, gynecological, neurological issues etc. and Medtronic has a big moat around its products, hence its pricing power.
Medtronic is a research and development company, hence an innovation premium should be applied also.
Medtronic's dividend yield for the last trailing year was 3.33 % which is a significant cash flow income to investors. The dividend also insures a protection, cushion against adverse business conditions.
According to Wolfteam Ltd.'s projections and comparables estimates Medtronic is undervalued.
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