Title: Evaluate Medtronic: Is Dr. Sharma's $85 Investment Undervalued After $280K Debt Payoff? Tagline: Is Medtronic Undervalued? Using the P/S Ratio to Evaluate Healthcare Stocks After Loan Repayment Problem: Dr. Anya Sharma, a 35-year-old physician, recently celebrated paying off $280,000 in student loans. Now, she's looking to aggressively grow her investment portfolio while continuing to max out her retirement accounts. She's particularly interested in healthcare stocks, aligning with her professional expertise, and is considering investing in Medtronic (MDT). However, she wants to ensure MDT isn't overvalued compared to its sales performance and other similar companies, especially given her goal of optimizing returns after years of dedicated loan repayment. Her initial research suggests MDT trades at $85 per share, has 1.3 billion shares outstanding, and generated $32 billion in revenue last year. Is MDT a good buy at this price? Solution: By using the P/S Ratio Calculator, Dr. Sharma can quickly assess MDT's valuation relative to its sales. The calculation will determine if the current stock price is justified by its revenue generation, allowing her to compare it to similar companies and make an informed investment decision. Specifically, Dr. Sharma will input the current share price of $85, the number of outstanding shares (1.3 billion), and the annual revenue ($32 billion). By comparing this P/S ratio to competitors like Abbott Labs and Stryker, she can determine if MDT presents a favorable opportunity for long-term growth in her portfolio. ROI: If MDT's P/S ratio is lower than its peers, indicating it may be undervalued, Dr. Sharma could potentially realize a 10-15% higher return on her investment over the next 3-5 years compared to investing in a company with a higher P/S ratio. If, for example, a competitor has a P/S ratio 25% higher than MDT, investing in MDT could translate to an extra $2,500-$3,750 annually on a $25,000 investment if both companies experience similar growth, representing increased compounded returns. Description: Determine if Medtronic (MDT) is a smart investment after significant student loan debt payoff by analyzing its Price-to-Sales ratio compared to industry peers. Understand if current market price reflects underlying sales performance. Category: Client Service