Danaher Corp. (DHR)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

Danaher Corp., FCFE calculation

USD $ in thousands

	12 months ended	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Net earnings
	Net noncash charges
	Change in operating capital
	Net cash provided by operating activities
	Payments for additions to property, plant and equipment
	Proceeds from sales of property, plant and equipment
	Make-whole premiums to redeem borrowings prior to maturity
	Net proceeds from (repayments of) borrowings, maturities of 90 days or less
	Proceeds from borrowings, maturities longer than 90 days
	Repayments of borrowings, maturities longer than 90 days
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Danaher Corp.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Danaher Corp.’s FCFE declined from 2015 to 2016 and from 2016 to 2017.

Danaher Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in thousands)
FCFE per share
Current share price (P)
Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors
3M Co.
General Electric Co.
Honeywell International Inc.
P/FCFE, Sector
General Industrials
P/FCFE, Industry
Industrials

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Danaher Corp., historical P/FCFE calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in thousands)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	3M Co.
	General Electric Co.
	Honeywell International Inc.
	P/FCFE, Sector
	General Industrials
	P/FCFE, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Danaher Corp.’s Annual Report.

2017 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
= hidden ÷ hidden = hidden

⁵ P/FCFE = Share price ÷ FCFE per share
= hidden ÷ hidden = hidden

Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Danaher Corp.’s P/FCFE ratio increased from 2015 to 2016 and from 2016 to 2017.

	Danaher Corp.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality