DANAHER CORP /DE/

DHR

Forward P/E: 22.26×
Mkt cap: 145 B USD
EV: 159 B USD
Sector: Healthcare
Coverage: 2007–2025
Currency: USD
Next event: Feb 24, 2027

JP Valuation

JP Score

32,8

Out of profile · window 5 years

JP entry price

OUT OF PROFILE

No target price is issued: the company falls outside the profile this method looks for.

Financial comments4

Leverage rising for 3 consecutive years.
The share count grows: net dilution.
Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.
ROIC below the required return: growth destroys value.

Quality factors

Each factor scores 0–100 on its own scale; the score is their weighted average.

Score	Weight → points
Growth consistency12 Earnings · fit to the log-linear line · σ_resid = 0.09822 %0 Earnings · hit rate · 20 %16 %0 Earnings · volatility · σ = 0.18611 %34 Revenue · fit to the log-linear line · σ_resid = 0.03414 %0 Revenue · hit rate · 50 %11 %3 Revenue · volatility · σ = 0.0637 %92 Forward · trajectory coherence · consensus 9.2 % vs. trend -9.5 %20 %8	·20 → 2,39
Growth pace24 Realized · -7.0 %50 %0 Expected · 9.2 %50 %47	·20 → 4,73
No recent stagnation50 Realized slowdown · 1.94×50 %1 Expected slowdown · -1.31×50 %99 3-year earnings CAGR at or below zero (-13.6 %): the engine has slowed. It is scored on the acceleration scale, not cut — a binary cut turned a continuous fact into a cliff, and fired on 36 % of the universe. Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.	·15 → 7,45
FCF quality99 FCF / net income conversion · 1.34×100 %99 Window chosen: last 3 years (the best of those evaluated). Alternative · last 5 years: conversion 1.23× → 94 points. Positive FCF in 3 of the 3 years in the window.	·15 → 14,78
Debt33 Net debt / EBITDA · 1.93×100 %33 Net debt / EBITDA has risen 3 years in a row: −8 points. Interest coverage (EBIT / \|interest\|) = 10.3×. Leverage rising for 3 consecutive years.	·15 → 5,00
Return on invested capital (ROIC)12 Level (recency-weighted mean) · 7.1 %50 %9 Spread over the required return · −0.0 pp over the 10 % required30 %21 Trend · −5.3 pp over 5 years20 %6 Average ROIC (7.1 %) below the required return (10 %): growth destroys value. ROIC below the required return: growth destroys value.	·15 → 1,84
Weighted base	·100 → 36,19

Modifiers and penalties

The factors build the score; the modifiers correct it, within +23 / −28. Same 0–100 bar, 100 is always good.

Score	Range	Points
Gross margin trend · −1.3 pp accumulated over 4 years37	±8	-2,0
Altman Z'' · Z'' = 7.71100	0/−15	0,0
Shareholder returns · dilutes 0.6 % a year0 Effective buyback (net share count) · 0.6 % of dilution0 Dividend yield (last DPS / price today) · 0.6 % · does not count: the active branch is dilution—	+15/−5	-1,4
Impairment · 0 % · worst magnitude: earnings100 Earnings · 0.0 %100 Free cash flow · 0.0 %100 EBITDA · 0.0 %100	0/−12	0,0
36,2 − 2,0 + 0,0 − 1,4 + 0,0 =32,8

Calculated on Sep 5, 2026

Score

Weight → points

Growth consistency12

Earnings · fit to the log-linear line · σ_resid = 0.09822 %0
Earnings · hit rate · 20 %16 %0
Earnings · volatility · σ = 0.18611 %34
Revenue · fit to the log-linear line · σ_resid = 0.03414 %0
Revenue · hit rate · 50 %11 %3
Revenue · volatility · σ = 0.0637 %92
Forward · trajectory coherence · consensus 9.2 % vs. trend -9.5 %20 %8

·20 → 2,39

Growth pace24

Realized · -7.0 %50 %0
Expected · 9.2 %50 %47

·20 → 4,73

No recent stagnation50

Realized slowdown · 1.94×50 %1
Expected slowdown · -1.31×50 %99
3-year earnings CAGR at or below zero (-13.6 %): the engine has slowed. It is scored on the acceleration scale, not cut — a binary cut turned a continuous fact into a cliff, and fired on 36 % of the universe.
Stagnation: 3-year earnings CAGR at or below zero. It is scored, not cut: the penalty is charged by the Impairment modifier, where it is continuous and capped.

·15 → 7,45

FCF quality99

FCF / net income conversion · 1.34×100 %99
Window chosen: last 3 years (the best of those evaluated).
Alternative · last 5 years: conversion 1.23× → 94 points.
Positive FCF in 3 of the 3 years in the window.

·15 → 14,78

Debt33

Net debt / EBITDA · 1.93×100 %33
Net debt / EBITDA has risen 3 years in a row: −8 points.
Interest coverage (EBIT / |interest|) = 10.3×.
Leverage rising for 3 consecutive years.

·15 → 5,00

Return on invested capital (ROIC)12

Level (recency-weighted mean) · 7.1 %50 %9
Spread over the required return · −0.0 pp over the 10 % required30 %21
Trend · −5.3 pp over 5 years20 %6
Average ROIC (7.1 %) below the required return (10 %): growth destroys value.
ROIC below the required return: growth destroys value.

·15 → 1,84

Weighted base

·100 → 36,19

Score

Range

Points

Gross margin trend · −1.3 pp accumulated over 4 years37

±8

-2,0

Altman Z'' · Z'' = 7.71100

0/−15

0,0

Shareholder returns · dilutes 0.6 % a year0

Effective buyback (net share count) · 0.6 % of dilution0
Dividend yield (last DPS / price today) · 0.6 % · does not count: the active branch is dilution—

+15/−5

-1,4

Impairment · 0 % · worst magnitude: earnings100

Earnings · 0.0 %100
Free cash flow · 0.0 %100
EBITDA · 0.0 %100

0/−12

0,0

36,2 − 2,0 + 0,0 − 1,4 + 0,0 =32,8