MDT PEG Ratio Analysis
Updated 53h ago·SEC filings & market data
Key Takeaway
MDT's current PEG Ratio of 1.18x means the stock's price is 1.18 times its expected earnings growth rate — a lower PEG typically suggests better value, while a higher one may indicate overvaluation.
Sector Performance
55th percentileMDT
1.18x
Sector Median
0.97x
Sector Avg
2.92x
Prior Period
1.32x(Jun 2026)
Deep Analysis
MDT's current PEG Ratio of 1.18x means the stock's price is 1.18 times its expected earnings growth rate — a lower PEG typically suggests better value, while a higher one may indicate overvaluation.
This sits slightly above the sector median of 1.00x, placing MDT in the 53rd percentile among peers, meaning it is marginally more expensive than the typical sector stock. The year-over-year change is not available, but the ratio has decreased by 10.6% quarter-over-quarter, moving from 1.32x to 1.18x. A PEG just above the median combined with a declining trend could signal improving growth expectations or a price correction, potentially reducing valuation risk. However, at 1.18x, the stock remains within a reasonable range relative to sector norms. This metric supports the overall NEUTRAL verdict, as it neither confirms a compelling bargain nor flags clear overvaluation.
Frequently Asked Questions
What does the PEG Ratio tell investors about MDT?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are MDT's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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1.18x
Sector Median
0.97x
Sector Avg
2.92x
How MDT's PEG Ratio compares to sector peers.
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