Becton, Dickinson and Company (BDX) Intrinsic Value & DCF Valuation
Medical - Instruments & Supplies · NYSE
Current Price
$165.47
Intrinsic Value
$182.58
+9.4% margin of safety
What Is Becton, Dickinson and Company's Intrinsic Value?
As of 2026-07-30, the base-case DCF model estimates the intrinsic value of Becton, Dickinson and Company (BDX) at $182.58 per share, compared with a market price of $165.47, a margin of safety of +9.4%. The base case assumes 6.9% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $147.07 to $223.43. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Becton, Dickinson and Company (BDX) Undervalued?
At $165.47, BDX trades about 9.4% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Broad Product Portfolio & Scale
BDX offers a wide range of medical instruments and supplies, creating a comprehensive offering for healthcare providers. This scale provides cost advantages and deep customer relationships.
↑Strong Brand Reputation & Trust
Decades of reliable product performance have built significant trust with clinicians and hospitals. This reputation is a barrier to entry for new competitors seeking to displace established solutions.
↑GLP-1 Demand Tailwinds
The surging demand for GLP-1 medications is driving increased need for BDX's drug delivery devices. This specific market growth provides a near-term demand advantage.
INVESTMENT RISKS
↓Supply Chain Disruptions
Global supply chain issues can impact BDX's ability to source raw materials and manufacture its products. This could lead to production delays and affect revenue.
↓Product Recalls & Litigation
The nature of medical devices means that product defects or failures can lead to costly recalls and potential litigation. This poses a financial and reputational risk.
↓Technological Obsolescence
Rapid advancements in medical technology could render existing BDX products obsolete. The company must continually invest in R&D to stay ahead of innovation curves.
Base case
BDX base case valuation
Intrinsic Value
$182.58
Margin of safety
+9.4%
Expected annual return
+2.0%
Base case assumptions: 6.9% annual growth, 10.0% discount rate, 19x exit multiple, 5 year projection. Data as of 2026-07-30.
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
19.1x
EV/EBITDA
16.3x
FCF Yield
5.24%
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 19.1x and FCF yield of 5.24% 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 $165.47, 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 19.1x with a free cash flow yield of 5.24%. 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% means the company's return on invested capital sits below the level that typically clears 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 16.3x, 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.