Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Current Valuation Ratios
Danaher Corp., current price multiples
| Danaher Corp. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | Pharmaceuticals, Biotechnology & Life Sciences | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | |||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||
| Growth rate (g) | |||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||
| Next year expected EPS | |||||||||||||||||
| Operating profit per share | |||||||||||||||||
| Sales per share | |||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||
| Price-earnings-growth (PEG) | |||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Danaher Corp., historical price multiples
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios exhibit varied trends over the five-year period. Generally, ratios increased from 2022 to 2023, followed by stabilization or slight decreases in subsequent years. This suggests a period of increased investor optimism followed by a more cautious outlook.
- Price to Earnings (P/E)
- The Price to Earnings ratio increased significantly from 25.65 in 2022 to 39.09 in 2023, indicating a substantial increase in investor willingness to pay for each dollar of earnings. Subsequently, the ratio decreased slightly to 38.12 in 2024 and then increased again to 40.93 in 2025, remaining at a relatively high level. This suggests continued, though fluctuating, positive sentiment regarding earnings potential.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, Price to Operating Profit increased notably from 20.97 in 2022 to 35.64 in 2023. The ratio then decreased to 30.56 in 2024 and stabilized at 31.54 in 2025. This pattern mirrors the P/E trend, indicating that investor valuation of operating profitability also experienced a surge in 2023, followed by a moderation.
- Price to Sales (P/S)
- The Price to Sales ratio showed an increase from 5.79 in 2022 to a peak of 7.76 in 2023. Following this, the ratio decreased to 6.23 in 2024 and further to 6.02 in 2025. This indicates that the market’s valuation of revenue decreased after the high point in 2023, suggesting a potential shift in focus from top-line growth to profitability or other factors.
- Price to Book Value (P/BV)
- A consistent downward trend is observed in the Price to Book Value ratio, decreasing from 4.16 in 2021 to 2.82 in 2025. This suggests a declining premium investors are willing to pay for the net asset value of the company, potentially reflecting concerns about asset utilization or future returns on equity. The decrease is relatively steady throughout the period.
Overall, the observed patterns suggest a period of heightened valuation in 2023, followed by a degree of correction or stabilization in 2024 and 2025. The decreasing Price to Book Value ratio warrants further investigation, as it indicates a diminishing investor confidence in the company’s net asset value.
Price to Earnings (P/E)
Danaher Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net earnings attributable to common stockholders (in millions) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/E Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net earnings attributable to common stockholders ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Danaher Corp. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuating behavior over the five-year period. Initially, the share price decreased from 2021 to 2022, while earnings per share (EPS) increased, resulting in a decrease in the P/E ratio. Subsequently, the P/E ratio increased significantly in 2023, despite a decrease in EPS, indicating a larger increase in investor valuation of each dollar of earnings. This trend continued into 2024 and 2025, with the P/E ratio remaining elevated, even as EPS continued to decline.
- Share Price
- The share price experienced a decline from US$262.39 in 2021 to US$250.11 in 2022, followed by relative stability at US$250.65 in 2023. A more substantial decrease was observed in 2024, falling to US$207.95, and remained near this level at US$209.19 in 2025. This suggests a weakening investor sentiment or broader market conditions impacting the company’s valuation.
- Earnings Per Share (EPS)
- EPS increased from US$8.76 in 2021 to US$9.75 in 2022, demonstrating improved profitability. However, EPS then decreased significantly to US$6.41 in 2023, and continued to decline in subsequent years, reaching US$5.46 in 2024 and US$5.11 in 2025. This consistent decline in EPS may be a key driver of investor concerns.
- Price to Earnings (P/E) Ratio
- The P/E ratio began at 29.94 in 2021, decreased to 25.65 in 2022, and then rose sharply to 39.09 in 2023. This increase occurred despite a decline in EPS, suggesting investors were willing to pay a higher premium for each dollar of earnings. The P/E ratio remained high in 2024 (38.12) and 2025 (40.93), even with further reductions in EPS. The sustained high P/E ratio, coupled with declining EPS, could indicate expectations of future earnings growth not yet reflected in current results, or potentially overvaluation.
The divergence between the share price and EPS trends, particularly in the later years, is noteworthy. While the share price decreased, the P/E ratio remained elevated, indicating that investors continued to assign a high valuation to the company despite declining earnings. This could be due to factors not captured in this analysis, such as anticipated future growth, industry trends, or overall market sentiment.
Price to Operating Profit (P/OP)
Danaher Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/OP Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Danaher Corp. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio exhibited fluctuating behavior over the five-year period. Initially, a decrease was observed, followed by a substantial increase, and then a stabilization at a relatively high level. The share price and operating profit per share both influenced this ratio’s movement.
- Share Price
- The share price experienced a decline from $262.39 in 2021 to $250.11 in 2022. It remained relatively stable at $250.65 in 2023 before decreasing significantly to $207.95 in 2024. A slight increase to $209.19 was noted in 2025, but the price remained below levels seen in earlier years.
- Operating Profit Per Share
- Operating profit per share increased from $10.44 in 2021 to $11.92 in 2022. A considerable decrease was then observed, falling to $7.03 in 2023. This trend continued with further declines to $6.80 in 2024 and $6.63 in 2025, indicating a consistent reduction in profitability on a per-share basis over the latter part of the period.
- P/OP Ratio Trend
- The P/OP ratio decreased from 25.14 in 2021 to 20.97 in 2022, coinciding with the initial share price decline and an increase in operating profit per share. A significant increase to 35.64 was recorded in 2023, driven by the combination of a stable share price and a substantial decrease in operating profit per share. The ratio then moderated to 30.56 in 2024 and remained at 31.54 in 2025, reflecting the continued decline in operating profit per share alongside a relatively stable share price.
The increase in the P/OP ratio in 2023, despite the decrease in share price, suggests that investors were willing to pay a higher premium for each dollar of operating profit. The subsequent stabilization of the P/OP ratio in 2024 and 2025, despite further declines in operating profit per share, indicates that the market’s valuation remained relatively consistent during those years. The overall trend suggests a shift in investor sentiment and a potential re-evaluation of the company’s future earnings potential.
Price to Sales (P/S)
Danaher Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Sales (in millions) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/S Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Danaher Corp. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price to sales ratio exhibited fluctuations over the five-year period. Initially, a decrease was observed, followed by an increase and then a subsequent decline. Share price and sales per share also demonstrated distinct trends during this timeframe, influencing the overall P/S ratio.
- Price to Sales Ratio
- The P/S ratio began at 6.37 in 2021, decreased to 5.79 in 2022, and then increased significantly to 7.76 in 2023. A decline was then noted in 2024, with the ratio falling to 6.23, followed by a slight decrease to 6.02 in 2025. This suggests a period of increased investor valuation relative to sales in 2023, which then partially corrected in the subsequent two years.
- Share Price
- The share price experienced a decrease from US$262.39 in 2021 to US$250.11 in 2022. It remained relatively stable at US$250.65 in 2023 before a substantial drop to US$207.95 in 2024. A modest recovery to US$209.19 was observed in 2025. This pattern indicates a period of investor confidence followed by a significant re-evaluation and limited subsequent recovery.
- Sales per Share
- Sales per share increased from US$41.17 in 2021 to US$43.20 in 2022. A notable decrease occurred in 2023, falling to US$32.30, and continued to US$33.41 in 2024, before rising slightly to US$34.74 in 2025. This suggests a period of sales growth followed by a contraction, with a modest recovery in the most recent year.
The interplay between the share price and sales per share significantly impacted the P/S ratio. The increase in the P/S ratio in 2023 occurred despite a decrease in share price, indicating a more substantial decline in sales per share. The subsequent decline in the P/S ratio in 2024 and 2025 coincided with a larger decrease in share price and a modest increase in sales per share.
Price to Book Value (P/BV)
Danaher Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Danaher stockholders’ equity (in millions) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| P/BV Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Total Danaher stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Danaher Corp. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value ratio for the period examined demonstrates a consistent downward trend. Initially, the ratio stood at 4.16, and subsequently decreased over the five-year period to 2.82. This indicates a decreasing premium that the market assigns to the net asset value of the company.
- Price to Book Value (P/BV) Trend
- From December 31, 2021, to December 31, 2023, the P/BV ratio experienced a moderate decline, moving from 4.16 to 3.47. This suggests a gradual reduction in investor confidence regarding the relationship between market price and underlying book value. A more pronounced decrease occurred between December 31, 2023, and December 31, 2024, with the ratio falling to 3.00. This sharper decline continued into December 31, 2025, reaching 2.82, representing the lowest value within the observed timeframe.
The share price exhibited a decrease over the period, falling from US$262.39 in 2021 to US$209.19 in 2025. Simultaneously, the book value per share generally increased, moving from US$63.14 to US$74.29. The combined effect of a declining share price and a rising book value per share is the primary driver of the observed decrease in the P/BV ratio.
- Share Price and Book Value Per Share
- While the book value per share showed an overall upward trajectory, the share price experienced a more significant downward trend. The increase in book value per share, while positive, was insufficient to offset the decline in share price, resulting in a lower P/BV ratio. The largest share price decrease occurred between 2022 and 2024.
The decreasing P/BV ratio could suggest that the market is becoming less optimistic about the company’s ability to generate future earnings from its assets, or that the market perceives the book value as an increasingly less reliable indicator of intrinsic value. Further investigation into the underlying causes of the share price decline and the factors influencing book value growth would be necessary to fully understand this trend.