Using the industry peer median P/E multiple (trailing + forward), Danaher Corporation (DHR) has a fair value of $154.62 based on 9 comparable companies in the Medical - Diagnostics & Research industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Danaher CorporationDHR | 134,148 | 37.4x | 22.4x |
| Amgen Inc.AMGN | 190,369 | 24.8x | 15.8x |
| Thermo Fisher Scientific Inc.TMO | 182,666 | 27.7x | 20.0x |
| Gilead Sciences, Inc.GILD | 170,903 | 20.3x | 15.9x |
| Intuitive Surgical, Inc.ISRG | 167,426 | 59.9x | 46.9x |
| Pfizer Inc.PFE | 156,770 | 20.3x | 9.3x |
| Stryker CorporationSYK | 127,271 | 39.6x | 22.2x |
| Medtronic plcMDT | 113,213 | 24.4x | 15.6x |
| McKesson CorporationMCK | 107,034 | 33.7x | 22.2x |
| Boston Scientific CorporationBSX | 105,082 | 36.5x | 20.4x |
| Industry Median | 27.7x | 20.0x | |
| (*) Profit after tax | 3,614 | 5,980 | |
| Equity Value | 100,173 | 119,696 | |
| (/) Outstanding shares | 711 | 711 | |
| Fair Price | $141 | $168 | |
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.