Danaher Corporation (DHR) Stock Valuation — PE Analysis
Medical - Diagnostics & Research · NYSE
Current Price
$218.30
PE Ratio (TTM)
39.0x
Intrinsic Value
$246.78
+11.5% margin of safety
COMPETITIVE MOAT
↑Strong Brand & Reputation
Danaher's established brands like Beckman Coulter and Leica Biosystems are trusted by researchers and clinicians. This reputation fosters customer loyalty and commands premium pricing.
↑Scale & Diversification
Operating across diverse segments of diagnostics and life sciences provides significant scale advantages. This diversification reduces reliance on any single market or product.
↑Acquisition Expertise
Danaher's proven track record of acquiring and integrating companies effectively allows it to expand its technological capabilities and market reach.
INVESTMENT RISKS
↓Integration Challenges
While acquisitions are a strength, integrating new businesses can be complex and may not always yield expected synergies or financial returns.
↓Technological Obsolescence
Rapid advancements in diagnostic and research technologies could render existing products outdated, requiring continuous and significant R&D investment.
↓Supply Chain Disruptions
Global supply chain vulnerabilities, as seen in recent years, can impact the availability of critical components and raw materials, affecting production and delivery.
Base case
DHR base case PE valuation
A base case PE valuation for DHR estimates a fair value of about $246.78 per share, against a current price of $218.3. The model assumes 10.0% annual earnings growth, a 37.97x target PE multiple, and a 10% discount rate.
Intrinsic Value
$246.78
Margin of safety
+11.5%
Expected annual return
+2.5%
Base case assumptions: 10.0% annual earnings growth, 37.97x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-07.
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 DHR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Danaher Corporation respond.
Open PE 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 PE Stock Valuation Data
PE Ratio (TTM)
39.0x
PEG Ratio
2.01
Earnings Yield
2.63%
ROE (TTM)
7.7%
Revenue/Share (TTM)
$35.60
Dividend Yield
0.69%
Debt/Equity
0.51x
Frequently Asked Questions
What is the PE ratio of DHR?
The trailing twelve-month PE ratio of DHR reflects how much investors pay per dollar of Danaher Corporation's earnings. This metric is most useful when compared to Medical - Diagnostics & Research peers and the company's own historical range.
Is DHR overvalued based on PE ratio?
DHR's PE of 39.0x combined with a PEG ratio of 2.01 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Medical - Diagnostics & Research, a DCF analysis may be more appropriate.
How do I value DHR stock using PE ratio?
To value Danaher Corporation using PE: (1) Compare the current PE (39.0x) against the Medical - Diagnostics & Research median to assess relative pricing, (2) check the PEG ratio (2.01) 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 DHR?
DHR's PEG ratio is 2.01, calculated by dividing the PE ratio (39.0x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for DHR stock valuation?
PE ratio gives a quick relative read — how DHR is priced versus Medical - Diagnostics & Research 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 DHR 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 DHR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-07. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.