DHR
Danaher Corporation
$172.00
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 16.1% above fair value
You pay
$172.00
Bear
$118.54
Fair
$148.18
Bull
$177.82
Bear
$118.54
-31.1%
$7.19 × 12x P/E
Fair
$148.18
-13.9%
$7.19 × 15x P/E
Bull
$177.82
+3.4%
$7.19 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
23.9x
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 $242.30 from 42 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $148.18 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 $242.30 (from 42 analysts). Our estimate is 55% 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