Medtronic Plc (MDT) is overvalued and Koninklijke Philips NV ADR (PHG) is overvalued.
Both trade above our estimate of their intrinsic value. MDT is the closer of the two: -25%, against -37% for PHG.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.8% (average of 3 methods) values the shares at $72.41; the price of $90.77 is 25% above that value, and 80% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
Discounting its cash flows at 8.1% (average of 3 methods) values the shares at $18.23; the price of $24.97 is 37% above that value, and 79% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
| Metric | MDT | PHG |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $90.77 | $24.97 |
| Intrinsic value | $72.41 | $18.23 |
| Margin of safety | -25% | -37% |
| Leak Score | 27/100 (3/12) | 27/100 (3/12) |
| Market cap | $116.1B | $24.4B |
| Revenue growth, 5 years | 3.8% | 0.4% |
| Operating margin | 19.9% | 9.1% |
| Net margin | 13.9% | 6.3% |
| Return on equity | 10.7% | 10.2% |
| Debt to equity | 0.56 | 0.65 |
| P/E | 22.4x | 18.6x |
| Forward P/E | 14.2x | 13.1x |
| P/B | 2.3x | 1.9x |
| Dividend yield | 3.1% | 4.0% |