MDTNEUTRAL

MDT PEG Ratio Analysis

1.18x

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 percentile

MDT

1.18x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

1.32x(Jun 2026)

↑ Improving
📊

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).

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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MDT

1.18x

Sector Median

0.97x

Sector Avg

2.92x

How MDT's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.