Is Danaher Corporation (DHR) overvalued?
On Equity Rank's model estimate, DHR trades 13% above its fair value. Danaher Corporation (DHR) last closed at $230.25; the multi-method model fair value is $203.62.
| Price | Model fair value | Price vs model |
|---|---|---|
| $230.25 | $203.62 | 13% above |
What the answer rests on
- 2 of 12 valuation methods put DHR's value above its price and 10 put it below, so the methods mostly agree.
- To justify today's price, DHR's free cash flow would need to grow about 10.1% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew -10.6% a year.
- DHR trades at 38.9 times its last year's earnings, against a median of 37.5 for 26 profitable Life Sciences Tools companies.
- Over the past year the price sat below the model fair value on 22% of trading days. The gap ranged from 7% below to 40% 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 DHR's fair value · What prices assume · Other companies