Becton, Dickinson and Company (BDX) Stock Valuation — DCF Analysis
Medical - Instruments & Supplies · NYSE
Current Price
$146.24
Intrinsic Value
$174.56
+16.2% margin of safety
COMPETITIVE MOAT
↑Established Medical Device Portfolio
BD possesses a broad and diversified portfolio of medical devices and supplies. This extensive product range creates significant switching costs for healthcare providers who rely on their integrated solutions.
↑Strong Regulatory Expertise
Navigating complex global regulatory approvals is a substantial barrier to entry. BD's long history and expertise in this area provide a durable advantage in bringing new products to market.
↑New Kidney Stone Laser System
The launch of the Elyra Thulium Fiber Laser System enhances BD's offerings in urology. This innovation improves workflow and efficiency, potentially capturing market share in a specialized area.
INVESTMENT RISKS
↓Valuation Concerns
Recent commentary suggests potential overvaluation for BDX. High valuations can increase downside risk if growth expectations are not met or if market sentiment shifts.
↓Competition in Medical Devices
The medical device industry is highly competitive. New entrants and established players constantly innovate, posing a threat to BD's market position and pricing power.
↓Integration of Acquisitions
BD has a history of acquisitions. Successfully integrating these businesses and realizing synergies can be challenging and may lead to operational disruptions.
Base case
BDX base case valuation
A base case discounted cash flow model for BDX estimates an intrinsic value of about $174.56 per share, against a current price of $146.24. The model assumes 7.9% annual free cash flow growth, a 10.0% discount rate, and a 17x exit multiple.
Intrinsic Value
$174.56
Margin of safety
+16.2%
Expected annual return
+3.6%
Base case assumptions: 7.9% annual growth, 10.0% discount rate, 17x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the BDX valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Becton, Dickinson and Company respond.
Open DCF Calculator for BDXCompany Overview
Operating globally, Becton, Dickinson and Company (BD) is a prominent enterprise focused on the development, manufacturing, and distribution of a broad spectrum of medical technology. This includes essential medical supplies, sophisticated devices, advanced laboratory equipment, and critical diagnostic products. Its extensive customer base comprises healthcare providers, clinical institutions, medical researchers, pharmaceutical firms, and the general public around the world. The BD Medical division delivers a comprehensive suite of products primarily focused on medication management and drug delivery. This encompasses a variety of intravenous (IV) access solutions, such as peripheral and advanced catheters, central lines, acute dialysis catheters, and related vascular care items including needle-free connectors and closed-system drug transfer devices. It also provides essential injection equipment like hypodermic syringes, needles, anesthesia trays, enteral syringes, and sharps disposal systems. Additionally, this segment develops integrated systems for IV medication and infusion therapy, medication compounding workflow, automated dispensing, and supply chain optimization. Specialized products for diabetes management, including pen needles, along with prefillable drug delivery systems, are also key offerings. BD Life Sciences focuses on diagnostic and research tools, offering products for specimen and blood collection. This segment supplies automated systems for culturing blood and tuberculosis, molecular testing, microorganism identification, and drug susceptibility analysis. It also provides liquid-based cytology systems, rapid diagnostic assays, microbiology laboratory automation, and plated media. Furthermore, it offers advanced solutions for cell analysis, including fluorescence-activated cell sorters and analyzers, antibodies, kits, and reagent systems. These are crucial for single-cell gene expression analysis, as well as for clinical oncology, immunological, and transplantation diagnostics and monitoring. Finally, the BD Interventional segment delivers specialized products for surgical and interventional procedures. Its portfolio includes solutions for hernia and soft tissue repair, biological and bioresorbable grafts, and biosurgery, alongside other surgical products. This segment also addresses surgical infection prevention, provides a range of surgical and laparoscopic instrumentation, offers peripheral intervention products, and supplies urology and critical care devices. Established in 1897, the company maintains its headquarters in Franklin Lakes, New Jersey.
Financial Metrics — BDX Stock Valuation Data
Revenue/Share (TTM)
$76.13
FCF/Share (TTM)
$11.20
ROIC (TTM)
4.1%
ROE (TTM)
4.5%
P/FCF
16.9x
EV/EBITDA
16.7x
FCF Yield
5.93%
Debt/Equity
0.72x
Based on trailing twelve-month data, BDX shows a free cash flow per share of $11.20 and a ROIC of 4.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 16.9x and FCF yield of 5.93% are important context metrics when evaluating BDX's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of BDX?
Becton, Dickinson and Company currently generates $11.20 in free cash flow per share. At the current price of $146.24, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is BDX undervalued?
BDX trades at a P/FCF ratio of 16.9x with a free cash flow yield of 5.93%. This P/FCF is in a moderate range. However, whether BDX is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value BDX stock using DCF?
To perform a DCF valuation on Becton, Dickinson and Company: (1) Start with the trailing free cash flow per share ($11.20) as the base, (2) project future FCF growth over 5-10 years based on Medical - Instruments & Supplies industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting BDX's risk profile — with a debt-to-equity of 0.72x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to BDX?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Becton, Dickinson and Company, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Medical - Instruments & Supplies trends, then discounting those amounts to today's dollars. BDX's ROIC of 4.1% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect BDX stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For BDX, with a debt-to-equity ratio of 0.72x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 16.7x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See BDX PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Healthcare valuationsDCF and P/E value BDX with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.