Danaher Corporation (DHR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-14.1%

$197.09

vs $229.41 price

Levered DCF

$161.39

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.74

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	45.15×	43.07×	35.92×	24.01×	33.25×	39.62×	39.09×	24.18×
P/B	3.08×	3.39×	3.19×	3.41×	4.61×	3.5×	3.21×	2.27×
P/S	6.59×	7.03×	7.13×	6.4×	7.08×	6.24×	5.43×	3.76×
EV / EBITDA	25.3×	25.13×	24.54×	19.53×	22.89×	23.72×	21.7×	17.07×
Gross margin	60.9%	59.5%	58.7%	60.8%	61.0%	56.0%	55.7%	55.8%
Operating margin	20.9%	21.7%	22.1%	28.3%	27.3%	19.4%	18.8%	18.0%
Net margin	14.7%	16.3%	19.9%	27.1%	21.8%	16.4%	14.3%	15.5%
Current ratio	1.87×	1.4×	1.68×	1.89×	1.43×	1.86×	5.19×	1.47×
Debt / equity	0.35×	0.35×	0.37×	0.41×	0.52×	0.56×	0.74×	0.35×
Interest coverage	19.38×	18.65×	18.27×	36.41×	33.4×	15.79×	30.96×	22.43×
Dividend yield	0.5%	0.5%	0.5%	0.5%	0.4%	0.4%	0.5%	0.7%
Payout ratio	24.3%	19.7%	17.2%	11.3%	11.5%	16.9%	20.6%	16.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.9%	7.9%	8.9%	14.4%	14.2%	9.2%	8.4%	9.4%
Return on invested capital	5.7%	6.1%	5.7%	8.7%	8.9%	5.1%	4.3%	5.8%
Return on assets	4.3%	5.0%	5.6%	8.5%	7.7%	4.8%	4.1%	5.5%
Free cash flow yield	3.2%	3.2%	3.4%	4.3%	3.4%	3.9%	3.4%	5.4%
Earnings yield	2.2%	2.3%	2.8%	4.2%	3.1%	2.6%	2.6%	4.1%
Enterprise value	$175.7B	$182.9B	$184.1B	$185.2B	$229.1B	$155.2B	$99.9B	$73B
Net debt / EBITDA	1.99×	2.07×	1.82×	1.54×	2.07×	2.47×	0.57×	2.09×
Cash conversion cycle (days)	83	89	102	101	74	88	72	73