Is Becton Dickinson and Company (BDX) overvalued?
On Equity Rank's model estimate, BDX trades close to its fair value (1% above it). Becton Dickinson and Company (BDX) last closed at $211.88; the multi-method model fair value is $210.50.
| Price | Model fair value | Price vs model |
|---|---|---|
| $211.88 | $210.50 | 1% above |
What the answer rests on
- 4 of 10 valuation methods put BDX's value above its price and 6 put it below, so the methods disagree.
- To justify today's price, BDX's free cash flow would need to grow about -0.4% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 17.2% a year.
- BDX trades at 46.1 times its last year's earnings, against a median of 30.9 for 37 profitable Medical Devices companies.
- Over the past year the price sat below the model fair value on 99% of trading days. The gap ranged from 36% below to 1% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind BDX's fair value · What prices assume · Other companies