Becton, Dickinson and Company (BDX) Stock Valuation — PE Analysis
Medical - Instruments & Supplies · NYSE
Current Price
$146.24
PE Ratio (TTM)
36.1x
Intrinsic Value
$151.75
+3.6% 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 PE valuation
A base case PE valuation for BDX estimates a fair value of about $151.75 per share, against a current price of $146.24. The model assumes 7.9% annual earnings growth, a 36x target PE multiple, and a 10% discount rate.
Intrinsic Value
$151.75
Margin of safety
+3.6%
Expected annual return
+0.7%
Base case assumptions: 7.9% annual earnings growth, 36x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the BDX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Becton, Dickinson and Company respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
36.1x
PEG Ratio
n/m
Earnings Yield
2.77%
ROE (TTM)
4.5%
Revenue/Share (TTM)
$76.13
Dividend Yield
2.56%
Debt/Equity
0.72x
Frequently Asked Questions
What is the PE ratio of BDX?
The trailing twelve-month PE ratio of BDX reflects how much investors pay per dollar of Becton, Dickinson and Company's earnings. This metric is most useful when compared to Medical - Instruments & Supplies peers and the company's own historical range.
Is BDX overvalued based on PE ratio?
BDX's PE of 36.1x combined with a PEG ratio of -1.46 provides a growth-adjusted perspective. BDX has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Instruments & Supplies, a DCF analysis may be more appropriate.
How do I value BDX stock using PE ratio?
To value Becton, Dickinson and Company using PE: (1) Compare the current PE (36.1x) against the Medical - Instruments & Supplies median to assess relative pricing, (2) check the PEG ratio (-1.46) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of BDX?
BDX's PEG ratio is -1.46, calculated by dividing the PE ratio (36.1x) by the expected earnings growth rate. Because BDX has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for BDX stock valuation?
PE ratio gives a quick relative read — how BDX is priced versus Medical - Instruments & Supplies peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See BDX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Healthcare valuationsP/E and DCF value BDX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic 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.