Intrinsic value of Becton Dickinson - BDX

Previous Close

$218.31

  Intrinsic Value

$54.45

stock screener

  Rating & Target

str. sell

-75%

Previous close

$218.31

 
Intrinsic value

$54.45

 
Up/down potential

-75%

 
Rating

str. sell

We calculate the intrinsic value of BDX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 49.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  21.41
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  12,483
  12,733
  13,026
  13,360
  13,736
  14,153
  14,609
  15,107
  15,646
  16,226
  16,849
  17,515
  18,226
  18,982
  19,787
  20,640
  21,545
  22,502
  23,515
  24,585
  25,714
  26,906
  28,163
  29,488
  30,884
  32,354
  33,903
  35,532
  37,247
  39,050
  40,948
Variable operating expenses, $m
 
  10,655
  10,883
  11,144
  11,436
  11,761
  12,116
  12,504
  12,923
  13,375
  13,860
  13,636
  14,190
  14,779
  15,405
  16,070
  16,774
  17,520
  18,308
  19,141
  20,020
  20,948
  21,927
  22,959
  24,045
  25,190
  26,395
  27,664
  28,999
  30,403
  31,881
Fixed operating expenses, $m
 
  619
  635
  650
  667
  683
  700
  718
  736
  754
  773
  793
  812
  833
  853
  875
  897
  919
  942
  966
  990
  1,014
  1,040
  1,066
  1,092
  1,120
  1,148
  1,176
  1,206
  1,236
  1,267
Total operating expenses, $m
  11,053
  11,274
  11,518
  11,794
  12,103
  12,444
  12,816
  13,222
  13,659
  14,129
  14,633
  14,429
  15,002
  15,612
  16,258
  16,945
  17,671
  18,439
  19,250
  20,107
  21,010
  21,962
  22,967
  24,025
  25,137
  26,310
  27,543
  28,840
  30,205
  31,639
  33,148
Operating income, $m
  1,430
  1,458
  1,508
  1,566
  1,633
  1,709
  1,793
  1,885
  1,987
  2,097
  2,216
  3,086
  3,223
  3,371
  3,528
  3,696
  3,874
  4,064
  4,265
  4,478
  4,704
  4,943
  5,196
  5,464
  5,746
  6,045
  6,359
  6,691
  7,042
  7,411
  7,800
EBITDA, $m
  2,544
  2,871
  2,936
  3,012
  3,098
  3,196
  3,304
  3,423
  3,553
  3,693
  3,845
  4,008
  4,183
  4,370
  4,570
  4,783
  5,009
  5,249
  5,503
  5,773
  6,059
  6,361
  6,680
  7,017
  7,373
  7,749
  8,145
  8,563
  9,003
  9,468
  9,957
Interest expense (income), $m
  392
  369
  381
  395
  411
  429
  448
  470
  494
  519
  547
  577
  608
  642
  678
  716
  757
  800
  845
  893
  944
  998
  1,054
  1,114
  1,177
  1,244
  1,313
  1,387
  1,464
  1,546
  1,632
Earnings before tax, $m
  1,074
  1,089
  1,127
  1,171
  1,222
  1,280
  1,344
  1,415
  1,493
  1,577
  1,669
  2,509
  2,615
  2,729
  2,850
  2,979
  3,117
  3,264
  3,420
  3,585
  3,760
  3,946
  4,142
  4,350
  4,569
  4,801
  5,046
  5,305
  5,577
  5,865
  6,169
Tax expense, $m
  97
  294
  304
  316
  330
  346
  363
  382
  403
  426
  451
  678
  706
  737
  770
  804
  842
  881
  923
  968
  1,015
  1,065
  1,118
  1,174
  1,234
  1,296
  1,362
  1,432
  1,506
  1,584
  1,666
Net income, $m
  977
  795
  823
  855
  892
  934
  981
  1,033
  1,090
  1,151
  1,218
  1,832
  1,909
  1,992
  2,081
  2,175
  2,276
  2,383
  2,496
  2,617
  2,745
  2,880
  3,024
  3,175
  3,335
  3,505
  3,684
  3,872
  4,071
  4,282
  4,503

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,568
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  25,586
  24,486
  25,049
  25,693
  26,416
  27,216
  28,095
  29,052
  30,088
  31,203
  32,401
  33,682
  35,049
  36,505
  38,051
  39,693
  41,432
  43,274
  45,221
  47,278
  49,451
  51,743
  54,160
  56,708
  59,393
  62,220
  65,197
  68,331
  71,628
  75,097
  78,746
Adjusted assets (=assets-cash), $m
  24,018
  24,486
  25,049
  25,693
  26,416
  27,216
  28,095
  29,052
  30,088
  31,203
  32,401
  33,682
  35,049
  36,505
  38,051
  39,693
  41,432
  43,274
  45,221
  47,278
  49,451
  51,743
  54,160
  56,708
  59,393
  62,220
  65,197
  68,331
  71,628
  75,097
  78,746
Revenue / Adjusted assets
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
  0.520
Average production assets, $m
  10,849
  11,065
  11,319
  11,610
  11,937
  12,299
  12,696
  13,128
  13,596
  14,100
  14,641
  15,220
  15,838
  16,496
  17,195
  17,936
  18,722
  19,555
  20,434
  21,364
  22,346
  23,382
  24,474
  25,625
  26,838
  28,116
  29,461
  30,877
  32,367
  33,935
  35,584
Working capital, $m
  1,967
  1,426
  1,459
  1,496
  1,538
  1,585
  1,636
  1,692
  1,752
  1,817
  1,887
  1,962
  2,041
  2,126
  2,216
  2,312
  2,413
  2,520
  2,634
  2,753
  2,880
  3,013
  3,154
  3,303
  3,459
  3,624
  3,797
  3,980
  4,172
  4,374
  4,586
Total debt, $m
  11,551
  10,885
  11,283
  11,737
  12,247
  12,813
  13,433
  14,109
  14,840
  15,628
  16,473
  17,378
  18,343
  19,370
  20,462
  21,621
  22,849
  24,149
  25,524
  26,976
  28,510
  30,128
  31,835
  33,634
  35,529
  37,525
  39,627
  41,839
  44,167
  46,616
  49,192
Total liabilities, $m
  17,953
  17,287
  17,685
  18,139
  18,649
  19,215
  19,835
  20,511
  21,242
  22,030
  22,875
  23,780
  24,745
  25,772
  26,864
  28,023
  29,251
  30,551
  31,926
  33,378
  34,912
  36,530
  38,237
  40,036
  41,931
  43,927
  46,029
  48,241
  50,569
  53,018
  55,594
Total equity, $m
  7,633
  7,199
  7,364
  7,554
  7,766
  8,002
  8,260
  8,541
  8,846
  9,174
  9,526
  9,903
  10,304
  10,732
  11,187
  11,670
  12,181
  12,722
  13,295
  13,900
  14,538
  15,212
  15,923
  16,672
  17,461
  18,293
  19,168
  20,089
  21,059
  22,078
  23,151
Total liabilities and equity, $m
  25,586
  24,486
  25,049
  25,693
  26,415
  27,217
  28,095
  29,052
  30,088
  31,204
  32,401
  33,683
  35,049
  36,504
  38,051
  39,693
  41,432
  43,273
  45,221
  47,278
  49,450
  51,742
  54,160
  56,708
  59,392
  62,220
  65,197
  68,330
  71,628
  75,096
  78,745
Debt-to-equity ratio
  1.513
  1.510
  1.530
  1.550
  1.580
  1.600
  1.630
  1.650
  1.680
  1.700
  1.730
  1.750
  1.780
  1.800
  1.830
  1.850
  1.880
  1.900
  1.920
  1.940
  1.960
  1.980
  2.000
  2.020
  2.030
  2.050
  2.070
  2.080
  2.100
  2.110
  2.120
Adjusted equity ratio
  0.253
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294
  0.294

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  977
  795
  823
  855
  892
  934
  981
  1,033
  1,090
  1,151
  1,218
  1,832
  1,909
  1,992
  2,081
  2,175
  2,276
  2,383
  2,496
  2,617
  2,745
  2,880
  3,024
  3,175
  3,335
  3,505
  3,684
  3,872
  4,071
  4,282
  4,503
Depreciation, amort., depletion, $m
  1,114
  1,412
  1,428
  1,446
  1,465
  1,487
  1,511
  1,538
  1,566
  1,596
  1,629
  922
  960
  1,000
  1,042
  1,087
  1,135
  1,185
  1,238
  1,295
  1,354
  1,417
  1,483
  1,553
  1,627
  1,704
  1,786
  1,871
  1,962
  2,057
  2,157
Funds from operations, $m
  3,258
  2,208
  2,250
  2,300
  2,358
  2,422
  2,493
  2,571
  2,656
  2,748
  2,847
  2,754
  2,869
  2,992
  3,123
  3,262
  3,410
  3,568
  3,735
  3,912
  4,099
  4,297
  4,507
  4,728
  4,962
  5,209
  5,469
  5,744
  6,033
  6,338
  6,660
Change in working capital, $m
  699
  28
  33
  37
  42
  47
  51
  56
  60
  65
  70
  75
  80
  85
  90
  96
  101
  107
  113
  120
  127
  133
  141
  148
  156
  165
  173
  182
  192
  202
  213
Cash from operations, $m
  2,559
  2,180
  2,218
  2,263
  2,315
  2,375
  2,441
  2,515
  2,595
  2,683
  2,778
  2,680
  2,789
  2,907
  3,033
  3,166
  3,309
  3,461
  3,621
  3,792
  3,973
  4,164
  4,366
  4,580
  4,806
  5,044
  5,296
  5,561
  5,841
  6,136
  6,447
Maintenance CAPEX, $m
  0
  -658
  -671
  -686
  -704
  -723
  -745
  -769
  -796
  -824
  -855
  -887
  -922
  -960
  -1,000
  -1,042
  -1,087
  -1,135
  -1,185
  -1,238
  -1,295
  -1,354
  -1,417
  -1,483
  -1,553
  -1,627
  -1,704
  -1,786
  -1,871
  -1,962
  -2,057
New CAPEX, $m
  -718
  -216
  -254
  -291
  -327
  -362
  -397
  -432
  -468
  -504
  -541
  -579
  -618
  -658
  -699
  -742
  -786
  -832
  -880
  -930
  -982
  -1,036
  -1,092
  -1,151
  -1,213
  -1,278
  -1,345
  -1,416
  -1,490
  -1,568
  -1,649
Cash from investing activities, $m
  -669
  -874
  -925
  -977
  -1,031
  -1,085
  -1,142
  -1,201
  -1,264
  -1,328
  -1,396
  -1,466
  -1,540
  -1,618
  -1,699
  -1,784
  -1,873
  -1,967
  -2,065
  -2,168
  -2,277
  -2,390
  -2,509
  -2,634
  -2,766
  -2,905
  -3,049
  -3,202
  -3,361
  -3,530
  -3,706
Free cash flow, $m
  1,890
  1,306
  1,293
  1,286
  1,285
  1,290
  1,299
  1,313
  1,332
  1,355
  1,382
  1,213
  1,249
  1,289
  1,334
  1,383
  1,436
  1,494
  1,556
  1,624
  1,696
  1,774
  1,857
  1,945
  2,039
  2,140
  2,246
  2,360
  2,480
  2,607
  2,742
Issuance/(repayment) of debt, $m
  -1,252
  335
  398
  454
  510
  565
  620
  676
  731
  788
  845
  904
  965
  1,028
  1,092
  1,159
  1,228
  1,300
  1,375
  1,453
  1,534
  1,618
  1,707
  1,799
  1,895
  1,996
  2,102
  2,212
  2,328
  2,449
  2,576
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -1,199
  335
  398
  454
  510
  565
  620
  676
  731
  788
  845
  904
  965
  1,028
  1,092
  1,159
  1,228
  1,300
  1,375
  1,453
  1,534
  1,618
  1,707
  1,799
  1,895
  1,996
  2,102
  2,212
  2,328
  2,449
  2,576
Total cash flow (excl. dividends), $m
  679
  1,641
  1,690
  1,741
  1,795
  1,855
  1,919
  1,989
  2,063
  2,142
  2,227
  2,118
  2,214
  2,317
  2,426
  2,542
  2,664
  2,794
  2,931
  3,076
  3,230
  3,392
  3,563
  3,744
  3,935
  4,136
  4,348
  4,572
  4,808
  5,056
  5,318
Retained Cash Flow (-), $m
  -469
  -133
  -166
  -189
  -212
  -235
  -258
  -281
  -305
  -328
  -352
  -377
  -402
  -428
  -455
  -483
  -511
  -541
  -572
  -605
  -639
  -674
  -711
  -749
  -789
  -831
  -875
  -921
  -969
  -1,020
  -1,073
Prev. year cash balance distribution, $m
 
  567
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,076
  1,525
  1,551
  1,583
  1,620
  1,661
  1,707
  1,758
  1,814
  1,875
  1,741
  1,812
  1,889
  1,971
  2,059
  2,153
  2,252
  2,359
  2,471
  2,591
  2,718
  2,853
  2,995
  3,146
  3,305
  3,473
  3,651
  3,838
  4,036
  4,245
Discount rate, %
 
  8.30
  8.72
  9.15
  9.61
  10.09
  10.59
  11.12
  11.68
  12.26
  12.88
  13.52
  14.20
  14.91
  15.65
  16.43
  17.26
  18.12
  19.02
  19.97
  20.97
  22.02
  23.12
  24.28
  25.49
  26.77
  28.11
  29.51
  30.99
  32.54
  34.16
PV of cash for distribution, $m
 
  1,917
  1,290
  1,193
  1,097
  1,002
  908
  816
  727
  641
  559
  432
  369
  310
  257
  210
  169
  133
  103
  78
  58
  42
  29
  20
  14
  9
  6
  3
  2
  1
  1
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Becton, Dickinson and Company (BD) is a global medical technology company engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products. The Company operates through two segments: BD Medical and BD Life Sciences. The BD Medical segment produces an array of medical technologies and devices that are used to help improve healthcare delivery in a range of settings. BD Medical consists of various business units, including diabetes care, medication and procedural solutions, medication management solutions and pharmaceutical systems. The BD Life Sciences segment provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a range of infectious diseases, healthcare-associated infections and cancers. The Company's BD Life Sciences segment consists of various business units, including preanalytical systems, diagnostic systems and biosciences.

FINANCIAL RATIOS  of  Becton Dickinson (BDX)

Valuation Ratios
P/E Ratio 47.7
Price to Sales 3.7
Price to Book 6.1
Price to Tangible Book
Price to Cash Flow 18.2
Price to Free Cash Flow 25.3
Growth Rates
Sales Growth Rate 21.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 13.4%
Cap. Spend. - 3 Yr. Gr. Rate 4.1%
Financial Strength
Quick Ratio 2
Current Ratio 0.2
LT Debt to Equity 138.2%
Total Debt to Equity 151.3%
Interest Coverage 4
Management Effectiveness
Return On Assets 5.1%
Ret/ On Assets - 3 Yr. Avg. 6.9%
Return On Total Capital 5%
Ret/ On T. Cap. - 3 Yr. Avg. 7.6%
Return On Equity 13.2%
Return On Equity - 3 Yr. Avg. 16%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 48%
Gross Margin - 3 Yr. Avg. 48.2%
EBITDA Margin 20.7%
EBITDA Margin - 3 Yr. Avg. 21.9%
Operating Margin 11.5%
Oper. Margin - 3 Yr. Avg. 13.6%
Pre-Tax Margin 8.6%
Pre-Tax Margin - 3 Yr. Avg. 11.3%
Net Profit Margin 7.8%
Net Profit Margin - 3 Yr. Avg. 9.5%
Effective Tax Rate 9%
Eff/ Tax Rate - 3 Yr. Avg. 12.4%
Payout Ratio 57.5%

BDX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BDX stock intrinsic value calculation we used $12483 million for the last fiscal year's total revenue generated by Becton Dickinson. The default revenue input number comes from 2016 income statement of Becton Dickinson. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BDX stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.3%, whose default value for BDX is calculated based on our internal credit rating of Becton Dickinson, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Becton Dickinson.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BDX stock the variable cost ratio is equal to 83.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $604 million in the base year in the intrinsic value calculation for BDX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Becton Dickinson.

Corporate tax rate of 27% is the nominal tax rate for Becton Dickinson. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BDX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BDX are equal to 86.9%.

Life of production assets of 16.5 years is the average useful life of capital assets used in Becton Dickinson operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BDX is equal to 11.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $7633 million for Becton Dickinson - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 227.588 million for Becton Dickinson is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Becton Dickinson at the current share price and the inputted number of shares is $49.7 billion.

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COMPANY NEWS

▶ Why Most Analysts Recommend Buy for BD   [Dec-01-17 09:02AM  Market Realist]
▶ The Impact of Dispensing Business Changes on BDs Revenue   [Nov-29-17 10:55AM  Market Realist]
▶ BD Stock Reaches 52-Week High on November 27   [09:23AM  Market Realist]
▶ 3 Top Diabetes Stocks to Buy Now   [06:04AM  Motley Fool]
▶ These 3 Stocks Just Raised Their Dividends   [Nov-26-17 11:08AM  Motley Fool]
▶ BD Board Increases Dividend   [Nov-20-17 04:30PM  PR Newswire]
▶ Becton Dickinson and Company Rose on November 2   [Nov-06-17 07:32AM  Market Realist]
▶ Becton Dickinson beats Street 4Q forecasts   [06:20AM  Associated Press]
▶ EU mergers and takeovers (Oct 16)   [Oct-16-17 11:06AM  Reuters]
▶ Behind BDs Latest Analyst Recommendations   [Oct-06-17 11:43AM  Market Realist]
▶ Becton, Dickinson's Charts Are Bullish   [Oct-02-17 03:58PM  TheStreet.com]
▶ BD Introduces New 6mm Pen Needle for Injection Pens   [Sep-19-17 06:59AM  PR Newswire]
▶ Becton Dickinson Trying To Close In On Key Technical Benchmark   [03:00AM  Investor's Business Daily]
▶ Becton Dickinsons Recent Stock Performance   [Aug-30-17 10:35AM  Market Realist]
▶ How Innovation Is Driving Becton Dickinsons Growth in 2017   [Aug-29-17 10:38AM  Market Realist]
Financial statements of BDX
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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