DHR
Danaher Corporation
$216.07
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 125.8% above fair value
You pay
$216.07
Bear
$76.56
Fair
$95.70
Bull
$114.84
Bear
$76.56
-64.6%
$6.38 × 12x P/E
Fair
$95.70
-55.7%
$6.38 × 15x P/E
Bull
$114.84
-46.9%
$6.38 × 18x P/E
Adjust Assumptions
15.0x
6.38$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
33.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (43 analysts)
$221.58
Divergence from AlphaVal
57%
Summary
Applying a 15x P/E to adjusted EPS of $6.38, the base-case value is $95.70 per share.
Warnings
Wall Street's average price target is $221.58 (from 43 analysts). Our estimate is 57% 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