Danaher Corporation (DHR) Stock Valuation — DCF Analysis
Medical - Diagnostics & Research · NYSE
Current Price
$180.10
Intrinsic Value
$201.57
+10.7% margin of safety
COMPETITIVE MOAT
↑SCIEX Technology Leadership
SCIEX's ZenoTOF platform expansions and novus V55 system with AI tools demonstrate ongoing innovation. This strengthens their position in mass spectrometry.
↑Diversified Life Sciences Portfolio
Danaher's broad range of diagnostic and research tools across multiple segments provides resilience. This diversification mitigates risks tied to any single product or market.
↑Strong Brand Reputation
Danaher's established presence and consistent product performance build trust with researchers and clinicians. This reputation supports customer loyalty and market share.
INVESTMENT RISKS
↓Intense Market Competition
The diagnostics and research market is highly competitive. Danaher faces pressure from rivals offering similar or advanced technologies.
↓Regulatory Hurdles
New product approvals and compliance with evolving healthcare regulations can be lengthy and costly. Delays can impact market entry and revenue.
↓Integration Challenges
Acquisitions are a key growth strategy for Danaher. Successfully integrating new businesses and realizing synergies presents ongoing operational risks.
Base case
DHR base case valuation
A base case discounted cash flow model for DHR estimates an intrinsic value of about $201.57 per share, against a current price of $180.1. The model assumes 8.3% annual free cash flow growth, a 10.0% discount rate, and a 24x exit multiple.
Intrinsic Value
$201.57
Margin of safety
+10.7%
Expected annual return
+2.3%
Base case assumptions: 8.3% annual growth, 10.0% discount rate, 24x 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 DHR valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Danaher Corporation respond.
Open DCF Calculator for DHRCompany Overview
Danaher Corporation is a diversified global technology and science company that specializes in developing, manufacturing, and distributing a wide array of professional, medical, industrial, and commercial products and services across the world. The organization is structured into three primary operating segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions. Within the Life Sciences segment, Danaher provides advanced instrumentation and solutions crucial for scientific research and development. This encompasses equipment like mass spectrometers, flow cytometry, genomics, lab automation, centrifugation, particle counting and characterization tools, and microscopes, alongside genomics consumables and technologies vital for Gene and Cell Therapy. Additionally, it delivers bioprocess technologies, consumables, and related services, as well as sophisticated filtration, separation, and purification systems. Its diverse clientele includes pharmaceutical, biopharmaceutical, food and beverage, medical, and life sciences companies, in addition to universities, medical schools, research institutions, and various industrial manufacturers. The Diagnostics segment is dedicated to furnishing essential tools for healthcare. Its offerings range from comprehensive systems for chemistry, immunoassay, microbiology, and automation to products for hematology, molecular, acute care, and pathology diagnostics. This segment equips hospitals, physicians' offices, reference laboratories, and other critical care settings with clinical instruments, reagents, consumables, software, and support services for accurate patient diagnosis and management. The Environmental & Applied Solutions segment addresses a broad spectrum of industrial and resource management requirements. It supplies instrumentation, consumables, software, services, and disinfection systems critical for the analysis, treatment, and management of various water types—including ultra-pure, potable, industrial, waste, ground, source, and ocean water—across residential, commercial, industrial, and natural resource applications. Furthermore, this segment delivers instruments, software, services, and consumables tailored for color and appearance management, packaging design and quality assurance, packaging converting, printing, marking, coding, and traceability applications for consumer, pharmaceutical, and industrial products. Established in 1969, the company was initially known as Diversified Mortgage Investors, Inc., before officially rebranding as Danaher Corporation in 1984. Its corporate headquarters are located in Washington, D.C.
Financial Metrics — DHR Stock Valuation Data
Revenue/Share (TTM)
$35.00
FCF/Share (TTM)
$7.47
ROIC (TTM)
5.7%
ROE (TTM)
7.1%
P/FCF
24.1x
EV/EBITDA
21.1x
FCF Yield
4.15%
Debt/Equity
0.35x
Based on trailing twelve-month data, DHR shows a free cash flow per share of $7.47 and a ROIC of 5.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 24.1x and FCF yield of 4.15% are important context metrics when evaluating DHR's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of DHR?
Danaher Corporation currently generates $7.47 in free cash flow per share. At the current price of $180.10, 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 DHR undervalued?
DHR trades at a P/FCF ratio of 24.1x with a free cash flow yield of 4.15%. This P/FCF is in a moderate range. However, whether DHR 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 DHR stock using DCF?
To perform a DCF valuation on Danaher Corporation: (1) Start with the trailing free cash flow per share ($7.47) as the base, (2) project future FCF growth over 5-10 years based on Medical - Diagnostics & Research industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting DHR's risk profile — with a debt-to-equity of 0.35x, 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 DHR?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Danaher Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Medical - Diagnostics & Research trends, then discounting those amounts to today's dollars. DHR's ROIC of 5.7% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect DHR stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DHR, with a debt-to-equity ratio of 0.35x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 21.1x, 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 DHR 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 DHR 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.