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Danaher Corporation (DHR)

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

Valuation Snapshot

Stable Growth$113.70 - $301.62$173.86
Multi-Stage$77.82 - $85.02$81.35
Blended Fair Value$127.61
Current Price$184.84
Upside-30.96%
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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$113.70$173.86$301.62
Upside / Downside-38.49%-5.94%63.18%

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 Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,265.001,276.991,288.98
Year 2 PV (M)1,654.501,686.021,717.83
Year 3 PV (M)2,016.942,074.842,133.84
Year 4 PV (M)2,353.682,444.192,537.29
Year 5 PV (M)2,666.012,794.772,928.47
PV of Terminal Value (M)46,281.7848,517.2050,838.19
Equity Value (M)56,237.9058,794.0261,444.60
Shares Outstanding (M)722.70722.70722.70
Fair Value$77.82$81.35$85.02
Upside / Downside-57.90%-55.99%-54.00%

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