Using the industry peer median P/E multiple (trailing + forward), Becton, Dickinson and Company (BDX) has a fair value of $209.98 based on 6 comparable companies in the Medical - Instruments & Supplies industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Becton, Dickinson and CompanyBDX | 45,594 | 27.2x | 12.7x |
| Cardinal Health, Inc.CAH | 49,047 | 32.3x | 20.2x |
| Edwards Lifesciences CorporationEW | 47,986 | 45.1x | 27.8x |
| IDEXX Laboratories, Inc.IDXX | 46,141 | 44.2x | 39.7x |
| ResMed Inc.RMD | 32,529 | 23.4x | 20.2x |
| Agilent Technologies, Inc.A | 32,180 | 24.9x | 19.1x |
| IQVIA Holdings Inc.IQV | 28,849 | 21.7x | 13.4x |
| Industry Median | 28.6x | 20.2x | |
| (*) Profit after tax | 1,678 | 3,596 | |
| Equity Value | 48,000 | 72,576 | |
| (/) Outstanding shares | 287 | 287 | |
| Fair Price | $167 | $253 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.