Valuation of the company Medtronic
Nielsen, Chris (2019)
2019
Kaikki oikeudet pidätetään
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201903213536
https://urn.fi/URN:NBN:fi:amk-201903213536
Tiivistelmä
In 2018, The medical device global market was estimated to grow with over five percent per year to reach a market size of nearly 800 billion dollars by 2030. The growth of this market was largely expected to be a result of the economic development in the emerging markets and the aging of the world population. Medtronic, as the biggest medical device company in the world, was ready to take advantage of that market growth.
On the 1st of October 2018, Medtronic had a rating of overweight with a target share price of 103,29 dollars and a closing price of 99,49 dollars. This reflects that the financial analyst community believes that the Medtronic is an undervalued stock.
The aim of this thesis was to estimate a theoretical valuation of Medtronic and validate the view of the financial analyst community. The resulting valuation was based on a conducted strategic analysis, financial analysis, financial forecasting. These three steps were used to estimate a financial valuation of the company Medtronic and its share price.
The strategic analysis was conducted using one of the most widely used strategic analysis tool the SWOT analysis.
The financial analysis helped measure the historical financial performance of Medtronic.
The financial forecasting focused on developing a view of the future financial performance of Medtronic.
The financial valuation was the final step of this thesis research resulting in an estimated financial valuation of Medtronic. This thesis used the discounted cash flow valuation as the main valuation method.
The resulting valuation of Medtronic’s share was estimated to 179,61 dollars. This result was higher than the share price of Medtronic on the 1st of October of 99,49 dollars as well as the target price of the financial analyst community. The result of this thesis supports that the Medtronic share was undervalued on the 1st of October 2018.
On the 1st of October 2018, Medtronic had a rating of overweight with a target share price of 103,29 dollars and a closing price of 99,49 dollars. This reflects that the financial analyst community believes that the Medtronic is an undervalued stock.
The aim of this thesis was to estimate a theoretical valuation of Medtronic and validate the view of the financial analyst community. The resulting valuation was based on a conducted strategic analysis, financial analysis, financial forecasting. These three steps were used to estimate a financial valuation of the company Medtronic and its share price.
The strategic analysis was conducted using one of the most widely used strategic analysis tool the SWOT analysis.
The financial analysis helped measure the historical financial performance of Medtronic.
The financial forecasting focused on developing a view of the future financial performance of Medtronic.
The financial valuation was the final step of this thesis research resulting in an estimated financial valuation of Medtronic. This thesis used the discounted cash flow valuation as the main valuation method.
The resulting valuation of Medtronic’s share was estimated to 179,61 dollars. This result was higher than the share price of Medtronic on the 1st of October of 99,49 dollars as well as the target price of the financial analyst community. The result of this thesis supports that the Medtronic share was undervalued on the 1st of October 2018.