Narrow-moat Danaher started strong in 2024 primarily on the strength of its Cepheid diagnostic business, although positive signs are coming out of its other segments, too. We are raising our fair value estimate for Danaher 5% to $255 per share from $243 to reflect this strong start and cash flows generated since our last valuation update.
The Danaher Business System focuses on continuous improvement, including the acceleration of core growth and margin expansion through marketing initiatives and innovation, which appears positive for Danaher's long-term prospects.
Danaher continues to hunt for acquisitions in the life sciences and diagnostics markets, which could constrain ROICs including goodwill if it makes acquisitions at unattractive prices and is not able to integrate them as successfully as in the past.
|
Metric
|
DHR
|
MRK
|
RHHBY
|
|---|---|---|---|
Price/Earnings (Normalized) | 30.99 | 19.26 | 11.21 |
Price/Book Value | 3.47 | 2.41 | 5.58 |
Price/Sales | 8.29 | 3.06 | 2.92 |
Price/Cash Flow | 28.24 | 14.30 | 10.75 |
|
Metric
|
DHR
|
MRK
|
RHHBY
|
|---|---|---|---|
Quick Ratio | 1.34 | 0.79 | 0.99 |
Current Ratio | 1.85 | 1.42 | 1.35 |
Interest Coverage | 15.85 | 11.32 | 14.93 |
|
Metric
|
DHR
|
MRK
|
RHHBY
|
|---|---|---|---|
Return on Assets (Normalized) | 5.15% | 7.55% | 17.03% |
Return on Equity (Normalized) | 8.40% | 13.81% | 53.42% |
Return on Invested Capital (Normalized) | 6.02% | 10.19% | 26.30% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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