Medtronic PLC Current Valuation vs. Return On Asset
| 2M6 Stock | EUR 78.20 1.10 1.43% |
For Medtronic PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Medtronic PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Medtronic PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Medtronic PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Medtronic PLC over time as well as its relative position and ranking within its peers.
Medtronic |
Medtronic PLC Return On Asset vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Medtronic PLC's current stock value. Our valuation model uses many indicators to compare Medtronic PLC value to that of its competitors to determine the firm's financial worth. Medtronic PLC is rated third in current valuation category among its peers. It is rated below average in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Medtronic PLC is about 2,535,508,606,993 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Medtronic PLC's earnings, one of the primary drivers of an investment's value.Medtronic Current Valuation vs. Competition
Medtronic PLC is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Medical Devices industry is presently estimated at about 698.92 Billion. Medtronic PLC retains roughly 113.84 Billion in current valuation claiming about 16% of all equities under Medical Devices industry.
Medtronic Return On Asset vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Medtronic PLC |
| = | 113.84 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Medtronic PLC |
| = | 0.0449 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Medtronic Return On Asset Comparison
Medtronic PLC is rated fifth in return on asset category among its peers.
Medtronic PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Medtronic PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Medtronic PLC will eventually generate negative long term returns. The profitability progress is the general direction of Medtronic PLC's change in net profit over the period of time. It can combine multiple indicators of Medtronic PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. The company was founded in 1949 and is headquartered in Dublin, Ireland. MEDTRONIC PLC operates under Medical Devices classification in Germany and is traded on Frankfurt Stock Exchange. It employs 101013 people.
Medtronic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Medtronic PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Medtronic PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Medtronic PLC's important profitability drivers and their relationship over time.
Use Medtronic PLC in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Medtronic PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Medtronic PLC will appreciate offsetting losses from the drop in the long position's value.Medtronic PLC Pair Trading
Medtronic PLC Pair Trading Analysis
The ability to find closely correlated positions to Medtronic PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Medtronic PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Medtronic PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Medtronic PLC to buy it.
The correlation of Medtronic PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Medtronic PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Medtronic PLC moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Medtronic PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Medtronic PLC position
In addition to having Medtronic PLC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities Funds theme has 44 constituents at this time.
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Additional Information and Resources on Investing in Medtronic Stock
When determining whether Medtronic PLC is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Medtronic Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Medtronic Plc Stock. Highlighted below are key reports to facilitate an investment decision about Medtronic Plc Stock:Check out Trending Equities. For more detail on how to invest in Medtronic Stock please use our How to Invest in Medtronic PLC guide.You can also try the Stocks Directory module to find actively traded stocks across global markets.
To fully project Medtronic PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Medtronic PLC at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Medtronic PLC's income statement, its balance sheet, and the statement of cash flows.