Intrinsic value of Danaher - DHR

Previous Close

$101.29

  Intrinsic Value

$56.60

stock screener

  Rating & Target

sell

-44%

Previous close

$101.29

 
Intrinsic value

$56.60

 
Up/down potential

-44%

 
Rating

sell

We calculate the intrinsic value of DHR 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 2017), $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 70.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  8.60
  8.24
  7.92
  7.62
  7.36
  7.13
  6.91
  6.72
  6.55
  6.39
  6.26
  6.13
  6.02
  5.92
  5.82
  5.74
  5.67
  5.60
  5.54
  5.49
  5.44
  5.39
  5.35
  5.32
  5.29
  5.26
  5.23
  5.21
  5.19
  5.17
Revenue, $m
  19,906
  21,547
  23,252
  25,025
  26,867
  28,782
  30,772
  32,840
  34,991
  37,229
  39,557
  41,982
  44,508
  47,141
  49,886
  52,750
  55,740
  58,861
  62,122
  65,531
  69,094
  72,821
  76,720
  80,801
  85,073
  89,546
  94,232
  99,141
  104,285
  109,676
Variable operating expenses, $m
  15,867
  16,872
  17,916
  19,001
  20,129
  21,301
  22,519
  23,785
  25,102
  26,472
  24,217
  25,702
  27,248
  28,860
  30,540
  32,294
  34,124
  36,035
  38,032
  40,118
  42,300
  44,581
  46,968
  49,467
  52,082
  54,821
  57,689
  60,694
  63,843
  67,144
Fixed operating expenses, $m
  416
  425
  434
  444
  454
  464
  474
  484
  495
  506
  517
  528
  540
  552
  564
  577
  589
  602
  615
  629
  643
  657
  671
  686
  701
  717
  732
  749
  765
  782
Total operating expenses, $m
  16,283
  17,297
  18,350
  19,445
  20,583
  21,765
  22,993
  24,269
  25,597
  26,978
  24,734
  26,230
  27,788
  29,412
  31,104
  32,871
  34,713
  36,637
  38,647
  40,747
  42,943
  45,238
  47,639
  50,153
  52,783
  55,538
  58,421
  61,443
  64,608
  67,926
Operating income, $m
  3,623
  4,250
  4,902
  5,580
  6,285
  7,017
  7,779
  8,570
  9,394
  10,251
  14,823
  15,752
  16,720
  17,729
  18,782
  19,880
  21,026
  22,224
  23,475
  24,784
  26,152
  27,583
  29,080
  30,648
  32,290
  34,009
  35,810
  37,698
  39,676
  41,750
EBITDA, $m
  11,498
  12,470
  13,482
  14,533
  15,626
  16,762
  17,943
  19,170
  20,447
  21,775
  23,158
  24,598
  26,098
  27,662
  29,293
  30,994
  32,771
  34,626
  36,565
  38,591
  40,710
  42,926
  45,245
  47,673
  50,215
  52,877
  55,665
  58,587
  61,649
  64,859
Interest expense (income), $m
  212
  568
  662
  760
  862
  968
  1,078
  1,193
  1,312
  1,435
  1,564
  1,698
  1,837
  1,982
  2,133
  2,290
  2,454
  2,625
  2,804
  2,991
  3,186
  3,389
  3,602
  3,825
  4,058
  4,302
  4,557
  4,825
  5,105
  5,398
  5,706
Earnings before tax, $m
  3,055
  3,588
  4,142
  4,718
  5,316
  5,939
  6,586
  7,259
  7,958
  8,687
  13,125
  13,915
  14,738
  15,596
  16,491
  17,426
  18,401
  19,420
  20,485
  21,598
  22,762
  23,980
  25,255
  26,590
  27,988
  29,452
  30,986
  32,593
  34,278
  36,044
Tax expense, $m
  825
  969
  1,118
  1,274
  1,435
  1,603
  1,778
  1,960
  2,149
  2,345
  3,544
  3,757
  3,979
  4,211
  4,453
  4,705
  4,968
  5,243
  5,531
  5,831
  6,146
  6,475
  6,819
  7,179
  7,557
  7,952
  8,366
  8,800
  9,255
  9,732
Net income, $m
  2,230
  2,619
  3,023
  3,444
  3,881
  4,335
  4,808
  5,299
  5,810
  6,341
  9,582
  10,158
  10,759
  11,385
  12,039
  12,721
  13,433
  14,177
  14,954
  15,767
  16,616
  17,506
  18,436
  19,411
  20,431
  21,500
  22,619
  23,793
  25,023
  26,312

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  50,652
  54,826
  59,166
  63,677
  68,365
  73,237
  78,300
  83,563
  89,036
  94,730
  100,655
  106,825
  113,252
  119,951
  126,937
  134,224
  141,831
  149,774
  158,072
  166,744
  175,811
  185,295
  195,216
  205,600
  216,470
  227,853
  239,776
  252,267
  265,355
  279,073
Adjusted assets (=assets-cash), $m
  50,652
  54,826
  59,166
  63,677
  68,365
  73,237
  78,300
  83,563
  89,036
  94,730
  100,655
  106,825
  113,252
  119,951
  126,937
  134,224
  141,831
  149,774
  158,072
  166,744
  175,811
  185,295
  195,216
  205,600
  216,470
  227,853
  239,776
  252,267
  265,355
  279,073
Revenue / Adjusted assets
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
  0.393
Average production assets, $m
  41,943
  45,399
  48,993
  52,728
  56,610
  60,644
  64,836
  69,194
  73,726
  78,441
  83,348
  88,457
  93,779
  99,326
  105,110
  111,145
  117,443
  124,021
  130,892
  138,073
  145,581
  153,433
  161,649
  170,247
  179,248
  188,674
  198,547
  208,890
  219,728
  231,087
Working capital, $m
  358
  388
  419
  450
  484
  518
  554
  591
  630
  670
  712
  756
  801
  849
  898
  950
  1,003
  1,060
  1,118
  1,180
  1,244
  1,311
  1,381
  1,454
  1,531
  1,612
  1,696
  1,785
  1,877
  1,974
Total debt, $m
  12,265
  14,081
  15,969
  17,931
  19,970
  22,089
  24,292
  26,581
  28,962
  31,439
  34,016
  36,700
  39,496
  42,410
  45,449
  48,619
  51,928
  55,383
  58,993
  62,765
  66,709
  70,835
  75,151
  79,667
  84,396
  89,348
  94,534
  99,968
  105,661
  111,628
Total liabilities, $m
  22,034
  23,849
  25,737
  27,700
  29,739
  31,858
  34,060
  36,350
  38,731
  41,207
  43,785
  46,469
  49,265
  52,179
  55,217
  58,388
  61,697
  65,152
  68,761
  72,534
  76,478
  80,603
  84,919
  89,436
  94,165
  99,116
  104,303
  109,736
  115,430
  121,397
Total equity, $m
  28,619
  30,977
  33,429
  35,978
  38,626
  41,379
  44,239
  47,213
  50,305
  53,522
  56,870
  60,356
  63,988
  67,772
  71,719
  75,837
  80,135
  84,622
  89,311
  94,211
  99,333
  104,691
  110,297
  116,164
  122,306
  128,737
  135,473
  142,531
  149,926
  157,676
Total liabilities and equity, $m
  50,653
  54,826
  59,166
  63,678
  68,365
  73,237
  78,299
  83,563
  89,036
  94,729
  100,655
  106,825
  113,253
  119,951
  126,936
  134,225
  141,832
  149,774
  158,072
  166,745
  175,811
  185,294
  195,216
  205,600
  216,471
  227,853
  239,776
  252,267
  265,356
  279,073
Debt-to-equity ratio
  0.430
  0.450
  0.480
  0.500
  0.520
  0.530
  0.550
  0.560
  0.580
  0.590
  0.600
  0.610
  0.620
  0.630
  0.630
  0.640
  0.650
  0.650
  0.660
  0.670
  0.670
  0.680
  0.680
  0.690
  0.690
  0.690
  0.700
  0.700
  0.700
  0.710
Adjusted equity ratio
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565
  0.565

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,230
  2,619
  3,023
  3,444
  3,881
  4,335
  4,808
  5,299
  5,810
  6,341
  9,582
  10,158
  10,759
  11,385
  12,039
  12,721
  13,433
  14,177
  14,954
  15,767
  16,616
  17,506
  18,436
  19,411
  20,431
  21,500
  22,619
  23,793
  25,023
  26,312
Depreciation, amort., depletion, $m
  7,875
  8,220
  8,580
  8,953
  9,342
  9,745
  10,164
  10,600
  11,053
  11,525
  8,335
  8,846
  9,378
  9,933
  10,511
  11,114
  11,744
  12,402
  13,089
  13,807
  14,558
  15,343
  16,165
  17,025
  17,925
  18,867
  19,855
  20,889
  21,973
  23,109
Funds from operations, $m
  10,105
  10,839
  11,603
  12,397
  13,223
  14,080
  14,972
  15,899
  16,863
  17,866
  17,916
  19,004
  20,137
  21,318
  22,550
  23,835
  25,177
  26,579
  28,043
  29,574
  31,175
  32,849
  34,601
  36,435
  38,356
  40,367
  42,474
  44,682
  46,996
  49,421
Change in working capital, $m
  28
  30
  31
  32
  33
  34
  36
  37
  39
  40
  42
  44
  45
  47
  49
  52
  54
  56
  59
  61
  64
  67
  70
  73
  77
  81
  84
  88
  93
  97
Cash from operations, $m
  10,077
  10,810
  11,573
  12,365
  13,189
  14,046
  14,936
  15,862
  16,824
  17,826
  17,874
  18,960
  20,091
  21,270
  22,500
  23,784
  25,123
  26,522
  27,984
  29,512
  31,110
  32,782
  34,531
  36,362
  38,279
  40,287
  42,390
  44,594
  46,903
  49,324
Maintenance CAPEX, $m
  -3,863
  -4,194
  -4,540
  -4,899
  -5,273
  -5,661
  -6,064
  -6,484
  -6,919
  -7,373
  -7,844
  -8,335
  -8,846
  -9,378
  -9,933
  -10,511
  -11,114
  -11,744
  -12,402
  -13,089
  -13,807
  -14,558
  -15,343
  -16,165
  -17,025
  -17,925
  -18,867
  -19,855
  -20,889
  -21,973
New CAPEX, $m
  -3,313
  -3,456
  -3,594
  -3,735
  -3,882
  -4,034
  -4,192
  -4,358
  -4,532
  -4,715
  -4,907
  -5,109
  -5,322
  -5,547
  -5,784
  -6,035
  -6,299
  -6,577
  -6,871
  -7,181
  -7,508
  -7,852
  -8,216
  -8,598
  -9,001
  -9,426
  -9,873
  -10,343
  -10,838
  -11,359
Cash from investing activities, $m
  -7,176
  -7,650
  -8,134
  -8,634
  -9,155
  -9,695
  -10,256
  -10,842
  -11,451
  -12,088
  -12,751
  -13,444
  -14,168
  -14,925
  -15,717
  -16,546
  -17,413
  -18,321
  -19,273
  -20,270
  -21,315
  -22,410
  -23,559
  -24,763
  -26,026
  -27,351
  -28,740
  -30,198
  -31,727
  -33,332
Free cash flow, $m
  2,900
  3,160
  3,439
  3,731
  4,035
  4,351
  4,679
  5,020
  5,373
  5,738
  5,124
  5,516
  5,923
  6,346
  6,783
  7,238
  7,710
  8,201
  8,711
  9,242
  9,795
  10,371
  10,972
  11,599
  12,253
  12,936
  13,650
  14,396
  15,176
  15,992
Issuance/(repayment) of debt, $m
  1,743
  1,816
  1,888
  1,962
  2,039
  2,119
  2,202
  2,289
  2,381
  2,477
  2,578
  2,684
  2,796
  2,914
  3,039
  3,170
  3,309
  3,455
  3,610
  3,772
  3,944
  4,125
  4,316
  4,517
  4,729
  4,952
  5,186
  5,433
  5,694
  5,967
Issuance/(repurchase) of shares, $m
  31
  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  
  1,774
  1,816
  1,888
  1,962
  2,039
  2,119
  2,202
  2,289
  2,381
  2,477
  2,578
  2,684
  2,796
  2,914
  3,039
  3,170
  3,309
  3,455
  3,610
  3,772
  3,944
  4,125
  4,316
  4,517
  4,729
  4,952
  5,186
  5,433
  5,694
  5,967
Total cash flow (excl. dividends), $m
  4,674
  4,975
  5,327
  5,693
  6,074
  6,470
  6,882
  7,309
  7,754
  8,215
  7,701
  8,200
  8,719
  9,260
  9,822
  10,408
  11,019
  11,656
  12,321
  13,015
  13,739
  14,497
  15,288
  16,116
  16,982
  17,888
  18,836
  19,829
  20,870
  21,959
Retained Cash Flow (-), $m
  -2,261
  -2,358
  -2,452
  -2,549
  -2,649
  -2,752
  -2,861
  -2,974
  -3,092
  -3,217
  -3,348
  -3,486
  -3,631
  -3,785
  -3,947
  -4,118
  -4,298
  -4,488
  -4,688
  -4,900
  -5,123
  -5,358
  -5,606
  -5,867
  -6,142
  -6,431
  -6,736
  -7,057
  -7,395
  -7,751
Prev. year cash balance distribution, $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 flow adjustment, $m
  147
  159
  172
  186
  200
  215
  230
  246
  263
  280
  298
  316
  336
  356
  377
  399
  422
  446
  471
  497
  524
  553
  583
  614
  646
  681
  716
  754
  793
  834
Cash available for distribution, $m
  2,414
  2,617
  2,875
  3,144
  3,425
  3,718
  4,021
  4,336
  4,661
  4,998
  4,353
  4,714
  5,088
  5,475
  5,875
  6,291
  6,721
  7,168
  7,632
  8,115
  8,616
  9,139
  9,682
  10,249
  10,840
  11,456
  12,100
  12,772
  13,475
  14,209
Discount rate, %
  5.20
  5.46
  5.73
  6.02
  6.32
  6.64
  6.97
  7.32
  7.68
  8.07
  8.47
  8.89
  9.34
  9.81
  10.30
  10.81
  11.35
  11.92
  12.51
  13.14
  13.80
  14.49
  15.21
  15.97
  16.77
  17.61
  18.49
  19.41
  20.38
  21.40
PV of cash for distribution, $m
  2,294
  2,353
  2,432
  2,489
  2,521
  2,528
  2,509
  2,464
  2,394
  2,301
  1,780
  1,696
  1,594
  1,478
  1,351
  1,217
  1,081
  944
  812
  687
  571
  466
  373
  293
  225
  169
  124
  89
  62
  42
Current shareholders' claim on cash, %
  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

Danaher Corporation (Danaher) designs, manufactures and markets professional, medical, industrial and commercial products and services. The Company operates through four segments: Life Sciences, which offers a range of research tools that scientists use to study the basic building blocks of life, including genes, proteins, metabolites and cells, in order to understand the causes of disease, identify new therapies and test new drugs and vaccines; Diagnostics; which offers analytical instruments, reagents, consumables, software and services; Dental, which provides products that are used to diagnose, treat and prevent disease and ailments of the teeth, gums and supporting bone, and Environmental & Applied Solutions, which consists of various lines of business, including water quality and product identification. As of December 31, 2016, Danaher's research and development, manufacturing, sales, distribution, service and administrative facilities were located in over 60 countries.

FINANCIAL RATIOS  of  Danaher (DHR)

Valuation Ratios
P/E Ratio 27.5
Price to Sales 4.2
Price to Book 3
Price to Tangible Book
Price to Cash Flow 19.9
Price to Free Cash Flow 23.9
Growth Rates
Sales Growth Rate 17%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 15%
Cap. Spend. - 3 Yr. Gr. Rate 1.9%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 42.1%
Total Debt to Equity 53.3%
Interest Coverage 13
Management Effectiveness
Return On Assets 5.8%
Ret/ On Assets - 3 Yr. Avg. 7.2%
Return On Total Capital 7.1%
Ret/ On T. Cap. - 3 Yr. Avg. 9.2%
Return On Equity 10.9%
Return On Equity - 3 Yr. Avg. 12.2%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 55.4%
Gross Margin - 3 Yr. Avg. 54.3%
EBITDA Margin 23.4%
EBITDA Margin - 3 Yr. Avg. 22.4%
Operating Margin 15.2%
Oper. Margin - 3 Yr. Avg. 15.4%
Pre-Tax Margin 15.5%
Pre-Tax Margin - 3 Yr. Avg. 15.3%
Net Profit Margin 15.1%
Net Profit Margin - 3 Yr. Avg. 19.5%
Effective Tax Rate 17.5%
Eff/ Tax Rate - 3 Yr. Avg. 17.8%
Payout Ratio 15.7%

DHR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the DHR stock intrinsic value calculation we used $18330 million for the last fiscal year's total revenue generated by Danaher. The default revenue input number comes from 2017 income statement of Danaher. 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 DHR stock valuation model: a) initial revenue growth rate of 8.6% 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 5.2%, whose default value for DHR is calculated based on our internal credit rating of Danaher, 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 Danaher.
    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 DHR stock the variable cost ratio is equal to 81.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $407 million in the base year in the intrinsic value calculation for DHR 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 5.4% for Danaher.

Corporate tax rate of 27% is the nominal tax rate for Danaher. 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 DHR stock is equal to 0.8%.

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 DHR are equal to 210.7%.

Life of production assets of 10 years is the average useful life of capital assets used in Danaher 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 DHR is equal to 1.8%. 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 - $26358 million for Danaher - 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 696 million for Danaher 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 Danaher at the current share price and the inputted number of shares is $70.5 billion.

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COMPANY NEWS

▶ Company News For Jul 20, 2018   [Jul-20-18 09:23AM  Zacks]
▶ [$$] Danaher to Spin off Dental Business   [09:40AM  The Wall Street Journal]
▶ Danaher: 2Q Earnings Snapshot   [06:09AM  Associated Press]
▶ General Electric Company's $500 Million Dollar Man   [Jul-16-18 09:47AM  Motley Fool]
▶ GE Healthcare Spinoff Prompts Split Views on M&A Effect   [Jun-26-18 07:00PM  TheStreet.com]
▶ Danaher Trading Sideways Waiting For Next Breakout   [May-29-18 03:40PM  TheStreet.com]
▶ Danaher Announces Quarterly Dividend   [May-08-18 04:15PM  PR Newswire]
▶ Charts Say Danaher Could Rally Some 50% From Here   [May-03-18 05:18PM  TheStreet.com]
▶ Beckman Coulter Launches the DxH 900 Hematology Analyzer   [May-01-18 11:35AM  PR Newswire]
▶ [$$] Danaher Approached GE About Deal for GEs Life-Sciences Unit   [Apr-26-18 12:06AM  The Wall Street Journal]
▶ [$$] Danaher Approached GE About Deal for Life-Sciences Unit   [Apr-25-18 04:03PM  The Wall Street Journal]
▶ Dow, S&P 500 and Nasdaq Finish Lower as Apple, P&G Slump   [Apr-19-18 04:10PM  TheStreet.com]
▶ Danaher: 1Q Earnings Snapshot   [06:13AM  Associated Press]
▶ Are Big Dividend Stocks In Your Future?   [Apr-18-18 12:17PM  Forbes]
▶ Ignore Naysaying for General Electric Its All Priced In   [Apr-12-18 11:05AM  InvestorPlace]
▶ Danaher Stock Is Ready to Jump 20%   [Apr-06-18 03:56PM  Investopedia]
▶ Glenstone to open its long-planned expansion in October   [Mar-13-18 09:50AM  American City Business Journals]
▶ Danaher to acquire Integrated DNA Technologies   [08:25AM  American City Business Journals]
▶ Danaher Announces Quarterly Dividend   [Feb-20-18 04:15PM  PR Newswire]
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