The DCF model estimates the company’s free cash flow potential over time by forecasting future cash generation and discounting it back to present value. Using a two-stage equity cash flow approach, the latest twelve-month free cash flow is estimated at approximately $5.4 billion.
Projections suggest free cash flow could reach about $7.1 billion by 2028, with gradual growth assumed through 2035 based on analyst inputs and long-term modeling adjustments.
The valuation model estimates Medtronic’s intrinsic value at roughly $94.80 per share, compared with the recent trading price near $96.86. This suggests the stock may be slightly overvalued by about 2.2%, a difference considered relatively small in financial modeling and often treated as market noise rather than a strong signal.
Analysts emphasize that fair value estimates can change as new financial data, earnings reports, or regulatory developments emerge. The updated price target reflects shifting expectations about profitability, growth potential, and operational risks rather than a fixed prediction of future share price.
