DHR Valuation

Danaher Corp

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198.490

+3.32(1.701%)1D

Overview
Forecast
Valuation
Earnings

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 Undervalued zone, suggesting that its current forward PE ratio of 24.04 is considered Undervalued compared with the five-year average of 29.15. The fair price of Danaher Corp (DHR) is between 221.16 to 265.89 according to relative valuation methord. Compared to the current price of 195.17 USD , Danaher Corp is Undervalued By 11.75%.

Relative Value

Fair Zone

221.16-265.89

Current Price：195.17

11.75%

Undervalued

24.04

Trailing

Forward

19.73

EV/EBITDA

Danaher Corp. (DHR) has a current EV/EBITDA of 19.73. The 5-year average EV/EBITDA is 22.79. The thresholds are as follows: Strongly Undervalued below 17.81, Undervalued between 17.81 and 20.30, Fairly Valued between 25.28 and 20.30, Overvalued between 25.28 and 27.78, and Strongly Overvalued above 27.78. The current Forward EV/EBITDA of 19.73 falls within the Undervalued range.

21.83

EV/EBIT

Danaher Corp. (DHR) has a current EV/EBIT of 21.83. The 5-year average EV/EBIT is 26.86. The thresholds are as follows: Strongly Undervalued below 20.73, Undervalued between 20.73 and 23.80, Fairly Valued between 29.93 and 23.80, Overvalued between 29.93 and 33.00, and Strongly Overvalued above 33.00. The current Forward EV/EBIT of 21.83 falls within the Undervalued range.

5.61

Danaher Corp. (DHR) has a current PS of 5.61. The 5-year average PS is 6.70. The thresholds are as follows: Strongly Undervalued below 5.20, Undervalued between 5.20 and 5.95, Fairly Valued between 7.45 and 5.95, Overvalued between 7.45 and 8.20, and Strongly Overvalued above 8.20. The current Forward PS of 5.61 falls within the Undervalued range.

19.56

P/OCF

Danaher Corp. (DHR) has a current P/OCF of 19.56. The 5-year average P/OCF is 23.35. The thresholds are as follows: Strongly Undervalued below 17.50, Undervalued between 17.50 and 20.42, Fairly Valued between 26.27 and 20.42, Overvalued between 26.27 and 29.20, and Strongly Overvalued above 29.20. The current Forward P/OCF of 19.56 falls within the Undervalued range.

23.06

P/FCF

Danaher Corp. (DHR) has a current P/FCF of 23.06. The 5-year average P/FCF is 27.99. The thresholds are as follows: Strongly Undervalued below 19.55, Undervalued between 19.55 and 23.77, Fairly Valued between 32.21 and 23.77, Overvalued between 32.21 and 36.43, and Strongly Overvalued above 36.43. The current Forward P/FCF of 23.06 falls within the Undervalued range.

Danaher Corp (DHR) has a current Price-to-Book (P/B) ratio of 2.67. Compared to its 3-year average P/B ratio of 3.48 , the current P/B ratio is approximately -23.35% higher. Relative to its 5-year average P/B ratio of 4.02, the current P/B ratio is about -33.61% higher. Danaher Corp (DHR) has a Forward Free Cash Flow (FCF) yield of approximately 3.41%. Compared to its 3-year average FCF yield of 3.49%, the current FCF yield is approximately -2.13% lower. Relative to its 5-year average FCF yield of 3.41% , the current FCF yield is about 0.11% lower.

2.67

P/B

Median3y

3.48

Median5y

4.02

3.41

FCF Yield

Median3y

3.49

Median5y

3.41

Competitors Valuation Multiple

The average P/S ratio for DHR's competitors is 7.04, providing a benchmark for relative valuation. Danaher Corp Corp (DHR) exhibits a P/S ratio of 5.61, which is -20.36% above the industry average. Given its robust revenue growth of 3.36%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Boston Scientific Corp

Intuitive Surgical Inc

Thermo Fisher Scientific Inc

3.93

2.98%

169.53B

Performance Decomposition

Market capitalization of DHR decreased by 27.37% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 38.21 to 42.05.

The secondary factor is the Revenue Growth, contributed 3.36%to the performance.

Overall, the performance of DHR in the past 1 year is driven by P/E Change. Which is more unsustainable.

3.36%

5.74B → 5.94B

Revenue Growth

-40.79%

15.79 → 9.35

Margin Expansion

10.06%

38.21 → 42.05

P/E Change

-27.37%