DHR Relative Valuation
DHR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DHR is overvalued; if below, it's undervalued.
Historical Valuation
Danaher Corp (DHR) is now in the Fair zone, suggesting that its current forward PE ratio of 28.05 is considered Fairly compared with the five-year average of 28.66. The fair price of Danaher Corp (DHR) is between 221.38 to 265.20 according to relative valuation methord.
Relative Value
Fair Zone
221.38-265.20
Current Price：227.13
Fair
28.05
PE
1Y
3Y
5Y
Trailing
Forward
22.57
EV/EBITDA
Danaher Corp. (DHR) has a current EV/EBITDA of 22.57. The 5-year average EV/EBITDA is 22.51. The thresholds are as follows: Strongly Undervalued below 17.55, Undervalued between 17.55 and 20.03, Fairly Valued between 24.99 and 20.03, Overvalued between 24.99 and 27.47, and Strongly Overvalued above 27.47. The current Forward EV/EBITDA of 22.57 falls within the Historic Trend Line -Fairly Valued range.
25.00
EV/EBIT
Danaher Corp. (DHR) has a current EV/EBIT of 25.00. The 5-year average EV/EBIT is 26.20. The thresholds are as follows: Strongly Undervalued below 20.71, Undervalued between 20.71 and 23.45, Fairly Valued between 28.94 and 23.45, Overvalued between 28.94 and 31.68, and Strongly Overvalued above 31.68. The current Forward EV/EBIT of 25.00 falls within the Historic Trend Line -Fairly Valued range.
6.42
PS
Danaher Corp. (DHR) has a current PS of 6.42. The 5-year average PS is 6.67. The thresholds are as follows: Strongly Undervalued below 5.12, Undervalued between 5.12 and 5.89, Fairly Valued between 7.45 and 5.89, Overvalued between 7.45 and 8.22, and Strongly Overvalued above 8.22. The current Forward PS of 6.42 falls within the Historic Trend Line -Fairly Valued range.
22.77
P/OCF
Danaher Corp. (DHR) has a current P/OCF of 22.77. The 5-year average P/OCF is 23.08. The thresholds are as follows: Strongly Undervalued below 17.38, Undervalued between 17.38 and 20.23, Fairly Valued between 25.93 and 20.23, Overvalued between 25.93 and 28.77, and Strongly Overvalued above 28.77. The current Forward P/OCF of 22.77 falls within the Historic Trend Line -Fairly Valued range.
28.22
P/FCF
Danaher Corp. (DHR) has a current P/FCF of 28.22. The 5-year average P/FCF is 27.41. The thresholds are as follows: Strongly Undervalued below 19.93, Undervalued between 19.93 and 23.67, Fairly Valued between 31.15 and 23.67, Overvalued between 31.15 and 34.89, and Strongly Overvalued above 34.89. The current Forward P/FCF of 28.22 falls within the Historic Trend Line -Fairly Valued range.
Danaher Corp (DHR) has a current Price-to-Book (P/B) ratio of 3.14. Compared to its 3-year average P/B ratio of 3.32 , the current P/B ratio is approximately -5.35% higher. Relative to its 5-year average P/B ratio of 3.91, the current P/B ratio is about -19.65% higher. Danaher Corp (DHR) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.46%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.45% , the current FCF yield is about -100.00% lower.
3.14
P/B
Median3y
3.32
Median5y
3.91
3.11
FCF Yield
Median3y
3.46
Median5y
3.45
Competitors Valuation Multiple
The average P/S ratio for DHR's competitors is 5.27, providing a benchmark for relative valuation. Danaher Corp Corp (DHR) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 4.40%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of DHR decreased by 1.05% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 14.11 to 15.00.
The secondary factor is the Revenue Growth, contributed 4.40%to the performance.
Overall, the performance of DHR in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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