Definitive Analysis
Definitive Analysis

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Danaher Corporation (DHR)

Company Dividend Discount ModelIndustry: Medical - Diagnostics & ResearchSector: Healthcare

Valuation Snapshot

Stable Growth$122.67 - $361.09$193.46
Multi-Stage$81.63 - $89.21$85.35
Blended Fair Value$139.41
Current Price$184.84
Upside-24.58%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS7.82%12.93%1.061.141.131.030.850.730.600.520.550.49
YoY Growth---6.46%0.37%10.24%20.65%16.70%21.60%14.57%-5.38%12.91%55.51%
Dividend Yield--0.52%0.45%0.51%0.40%0.43%0.61%0.51%0.60%0.73%0.76%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,503.00
(-) Cash Dividends Paid (M)847.00
(=) Cash Retained (M)2,656.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)700.60437.88262.73
Cash Retained (M)2,656.002,656.002,656.00
(-) Cash Required (M)-700.60-437.88-262.73
(=) Excess Retained (M)1,955.402,218.132,393.28
(/) Shares Outstanding (M)722.70722.70722.70
(=) Excess Retained per Share2.713.073.31
LTM Dividend per Share1.171.171.17
(+) Excess Retained per Share2.713.073.31
(=) Adjusted Dividend3.884.244.48
WACC / Discount Rate8.83%8.83%8.83%
Growth Rate5.50%6.50%7.50%
Fair Value$122.67$193.46$361.09
Upside / Downside-33.63%4.66%95.35%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,503.003,730.703,973.194,231.454,506.494,799.414,943.40
Payout Ratio24.18%37.34%50.51%63.67%76.84%90.00%92.50%
Projected Dividends (M)847.001,393.172,006.762,694.243,462.604,319.474,572.64

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.83%8.83%8.83%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,268.061,280.081,292.10
Year 2 PV (M)1,662.521,694.181,726.15
Year 3 PV (M)2,031.612,089.932,149.36
Year 4 PV (M)2,376.532,467.922,561.93
Year 5 PV (M)2,698.402,828.732,964.05
PV of Terminal Value (M)48,957.2351,321.8853,777.03
Equity Value (M)58,994.3461,682.7364,470.62
Shares Outstanding (M)722.70722.70722.70
Fair Value$81.63$85.35$89.21
Upside / Downside-55.84%-53.82%-51.74%

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