Price to Earnings (P/E)
since 2005
Calculation
Becton, Dickinson & Co., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income applicable to common shareholders1 (in millions) | ÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 24, 2021 | 34.68 | = | 244.46 | ÷ | 7.05 | 7.05 | = | 2,002 | ÷ | 284,023,582 | |
| Nov 25, 2020 | 86.01 | = | 227.47 | ÷ | 2.64 | 2.64 | = | 767 | ÷ | 290,031,363 | |
| Nov 27, 2019 | 65.09 | = | 260.40 | ÷ | 4.00 | 4.00 | = | 1,082 | ÷ | 270,459,892 | |
| Nov 21, 2018 | 408.36 | = | 242.04 | ÷ | 0.59 | 0.59 | = | 159 | ÷ | 268,257,940 | |
| Nov 22, 2017 | 49.63 | = | 224.23 | ÷ | 4.52 | 4.52 | = | 1,030 | ÷ | 227,978,328 | |
| Nov 23, 2016 | 36.65 | = | 168.48 | ÷ | 4.60 | 4.60 | = | 976 | ÷ | 212,319,588 | |
| Nov 25, 2015 | 45.52 | = | 150.12 | ÷ | 3.30 | 3.30 | = | 695 | ÷ | 210,736,542 | |
| Nov 26, 2014 | 22.89 | = | 141.26 | ÷ | 6.17 | 6.17 | = | 1,185 | ÷ | 191,977,449 | |
| Nov 27, 2013 | 16.35 | = | 108.94 | ÷ | 6.66 | 6.66 | = | 1,293 | ÷ | 194,094,466 | |
| Nov 21, 2012 | 12.93 | = | 76.82 | ÷ | 5.94 | 5.94 | = | 1,170 | ÷ | 196,957,804 | |
| Nov 23, 2011 | 11.97 | = | 70.77 | ÷ | 5.91 | 5.91 | = | 1,271 | ÷ | 214,890,631 | |
| Nov 24, 2010 | 13.63 | = | 78.12 | ÷ | 5.73 | 5.73 | = | 1,318 | ÷ | 229,961,230 | |
| Nov 25, 2009 | 14.54 | = | 75.53 | ÷ | 5.19 | 5.19 | = | 1,232 | ÷ | 237,118,874 | |
| Nov 26, 2008 | 13.72 | = | 63.59 | ÷ | 4.64 | 4.64 | = | 1,127 | ÷ | 243,115,261 | |
| Nov 23, 2007 | 22.89 | = | 83.52 | ÷ | 3.65 | 3.65 | = | 890 | ÷ | 243,899,512 | |
| Nov 30, 2006 | 23.51 | = | 71.72 | ÷ | 3.05 | 3.05 | = | 752 | ÷ | 246,637,424 | |
| Dec 9, 2005 | 20.29 | = | 58.13 | ÷ | 2.87 | 2.87 | = | 722 | ÷ | 252,043,008 |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Becton, Dickinson & Co. Annual Report.
The analysis of the Price-to-Earnings (P/E) ratio reveals a significant transition in valuation dynamics over the period from 2005 to 2021. The valuation regime shifted from a period of relative stability and multiple compression to a period of high volatility and significant multiple expansion.
- Stable Growth and Multiple Compression (2005–2012)
- During this interval, earnings per share (EPS) exhibited a consistent upward trajectory, rising from 2.87 in 2005 to 5.94 in 2012. Despite a general increase in share price, the P/E ratio trended downward, moving from 20.29 in 2005 to a low of 11.97 in 2011. This indicates that earnings growth outpaced share price appreciation, leading to a more conservative valuation multiple.
- Valuation Expansion and Earnings Volatility (2013–2017)
- A shift in valuation is observed starting in 2013, characterized by an acceleration in share price growth that decoupled from EPS performance. While the share price rose from 108.94 in 2013 to 224.23 in 2017, EPS became volatile, notably dropping to 3.30 in 2015. Consequently, the P/E ratio expanded rapidly, climbing from 16.35 in 2013 to 49.63 in 2017, reflecting a significant increase in the premium investors were willing to pay per dollar of earnings.
- Extreme Volatility and Normalization (2018–2021)
- The period between 2018 and 2021 was marked by extreme fluctuations in the P/E ratio, primarily driven by severe earnings instability. A sharp decline in EPS to 0.59 in 2018 resulted in an anomalous P/E spike to 408.36. As earnings began to recover, the P/E ratio remained elevated—reaching 86.01 in 2020—before normalizing to 34.68 in 2021. This final normalization coincided with the highest recorded EPS of 7.05, suggesting a stabilization of the relationship between price and earnings following a period of high turbulence.
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Comparison to Competitors
Becton, Dickinson & Co., P/E, long-term trends, comparison to competitors
| Becton, Dickinson & Co. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Nov 24, 2021 | 34.68 | 29.13 | 18.13 | 59.94 | 46.56 | 26.03 |
| Nov 25, 2020 | 86.01 | 48.49 | 15.87 | 87.47 | 26.30 | 20.54 |
| Nov 27, 2019 | 65.09 | 41.83 | 15.96 | 48.72 | 28.78 | 20.48 |
| Nov 21, 2018 | 408.36 | 56.47 | 21.45 | 53.03 | 37.80 | 21.09 |
| Nov 22, 2017 | 49.63 | 220.29 | 15.44 | 70.95 | 29.96 | 20.77 |
| Nov 23, 2016 | 36.65 | 55.16 | 17.48 | 37.16 | 33.17 | 21.73 |
| Nov 25, 2015 | 45.52 | 12.83 | 12.99 | 34.24 | 40.56 | 18.18 |
| Nov 26, 2014 | 22.89 | 31.30 | 15.29 | 44.77 | 20.75 | 18.50 |
| Nov 27, 2013 | 16.35 | 23.25 | 9.95 | 22.82 | 14.99 | 12.35 |
| Nov 21, 2012 | 12.93 | 9.24 | 7.09 | 35.05 | 10.57 | 10.58 |
| Nov 23, 2011 | 11.97 | 18.67 | 8.36 | 39.05 | 13.37 | 10.78 |
| Nov 24, 2010 | 13.63 | 15.68 | 8.74 | 33.85 | 12.65 | 10.01 |
| Nov 25, 2009 | 14.54 | 14.69 | 5.53 | 54.30 | 17.11 | 9.91 |
| Nov 26, 2008 | 13.72 | 17.11 | 8.26 | 21.99 | 26.02 | 11.66 |
| Nov 23, 2007 | 22.89 | 23.82 | 12.02 | 79.87 | 20.81 | 12.85 |
| Nov 30, 2006 | 23.51 | 48.17 | 16.05 | 58.08 | 21.31 | 17.58 |
| Dec 9, 2005 | 20.29 | 20.03 | 20.66 | 36.68 | 35.12 | 24.20 |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Sector (Health Care Equipment & Services)
Becton, Dickinson & Co., P/E, long-term trends, comparison to sector (health care equipment & services)
| Becton, Dickinson & Co. | Health Care Equipment & Services | |
|---|---|---|
| Nov 24, 2021 | 34.68 | 28.98 |
| Nov 25, 2020 | 86.01 | 27.23 |
| Nov 27, 2019 | 65.09 | 25.22 |
| Nov 21, 2018 | 408.36 | 28.84 |
| Nov 22, 2017 | 49.63 | 28.17 |
| Nov 23, 2016 | 36.65 | 27.54 |
| Nov 25, 2015 | 45.52 | 20.20 |
| Nov 26, 2014 | 22.89 | 21.28 |
| Nov 27, 2013 | 16.35 | 14.93 |
| Nov 21, 2012 | 12.93 | 10.51 |
| Nov 23, 2011 | 11.97 | 14.07 |
| Nov 24, 2010 | 13.63 | 12.56 |
| Nov 25, 2009 | 14.54 | 11.86 |
| Nov 26, 2008 | 13.72 | 15.75 |
| Nov 23, 2007 | 22.89 | 17.58 |
| Nov 30, 2006 | 23.51 | 22.77 |
| Dec 9, 2005 | 20.29 | 24.03 |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Industry (Health Care)
Becton, Dickinson & Co., P/E, long-term trends, comparison to industry (health care)
| Becton, Dickinson & Co. | Health Care | |
|---|---|---|
| Nov 24, 2021 | 34.68 | 21.55 |
| Nov 25, 2020 | 86.01 | 32.22 |
| Nov 27, 2019 | 65.09 | 22.09 |
| Nov 21, 2018 | 408.36 | 24.32 |
| Nov 22, 2017 | 49.63 | 33.04 |
| Nov 23, 2016 | 36.65 | 21.90 |
| Nov 25, 2015 | 45.52 | 19.53 |
| Nov 26, 2014 | 22.89 | 21.38 |
| Nov 27, 2013 | 16.35 | 18.67 |
| Nov 21, 2012 | 12.93 | 15.77 |
| Nov 23, 2011 | 11.97 | 15.79 |
| Nov 24, 2010 | 13.63 | 15.12 |
| Nov 25, 2009 | 14.54 | 11.71 |
| Nov 26, 2008 | 13.72 | 13.07 |
| Nov 23, 2007 | 22.89 | 19.29 |
| Nov 30, 2006 | 23.51 | 18.61 |
| Dec 9, 2005 | 20.29 | 21.71 |
Based on: 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).