DHR
Danaher Corporation
$199.35
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 38.5% above fair value
You pay
$199.35
Bear
$115.16
Fair
$143.95
Bull
$172.75
Bear
$115.16
-42.2%
$7.19 × 12x P/E
Fair
$143.95
-27.8%
$7.19 × 15x P/E
Bull
$172.75
-13.3%
$7.19 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
27.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $228.22 from 43 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $143.95 per share.
Warnings
The company's reported profits differ from official accounting profits by 43%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $228.22 (from 43 analysts). Our estimate is 53% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples