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).
Current Valuation Ratios
Danaher Corp., current price multiples
| Danaher Corp. | Abbott Laboratories | Anthem Inc. | Becton, Dickinson & Co. | Bristol-Myers Squibb Co. | CVS Health Corp. | Edwards Lifesciences Corp. | HCA Healthcare Inc. | Intuitive Surgical Inc. | Medtronic PLC | Stryker Corp. | UnitedHealth Group Inc. | Health Care Equipment & Services | Health Care | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||
| Current share price (P) | $280.45 | ||||||||||||||||
| No. shares of common stock outstanding | 714,576,868 | ||||||||||||||||
| Growth rate (g) | 8.28% | ||||||||||||||||
| Earnings per share (EPS) | $4.91 | ||||||||||||||||
| Next year expected EPS | $5.32 | ||||||||||||||||
| Operating profit per share | $5.92 | ||||||||||||||||
| Sales per share | $31.18 | ||||||||||||||||
| Book value per share (BVPS) | $55.65 | ||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||
| Price to earnings (P/E) | 57.09 | 49.50 | 23.44 | 37.54 | — | 18.67 | 85.42 | 19.71 | 90.78 | 39.37 | 60.08 | 28.20 | 46.06 | 38.88 | |||
| Price to next year expected earnings | 52.73 | 51.43 | 21.17 | 36.98 | — | 17.24 | 70.22 | 2.74 | 79.44 | 38.40 | 54.63 | 24.32 | 42.85 | 36.01 | |||
| Price-earnings-growth (PEG) | 6.89 | — | 2.18 | 24.57 | — | 2.24 | 3.95 | 0.03 | 6.36 | 15.56 | 6.01 | 1.77 | 6.14 | 4.87 | |||
| Price to operating profit (P/OP) | 47.37 | 41.54 | 17.87 | 26.85 | — | 9.64 | 78.35 | 10.20 | 91.72 | 31.66 | 43.22 | 19.39 | 29.68 | 27.69 | |||
| Price to sales (P/S) | 8.99 | 6.43 | 0.89 | 3.71 | 3.32 | 0.50 | 16.03 | 1.44 | 22.09 | 4.71 | 6.69 | 1.70 | 2.07 | 3.21 | |||
| Price to book value (P/BV) | 5.04 | 6.79 | 3.23 | 3.17 | 3.73 | 1.93 | 15.38 | 129.37 | 9.89 | 2.76 | 7.34 | 6.63 | 4.71 | 6.12 | |||
Based on: 10-K (reporting date: 2020-12-31).
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
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Danaher Corp. P/E ratio increased from 2018 to 2019 and from 2019 to 2020. |
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Danaher Corp. P/OP ratio increased from 2018 to 2019 and from 2019 to 2020. |
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Danaher Corp. P/S ratio increased from 2018 to 2019 and from 2019 to 2020. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Danaher Corp. P/BV ratio increased from 2018 to 2019 and from 2019 to 2020. |
Price to Earnings (P/E)
Danaher Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 712,204,198 | 696,237,113 | 701,875,340 | 697,569,470 | 693,280,277 | |
| Selected Financial Data (US$) | ||||||
| Net earnings attributable to common stockholders (in millions) | 3,510 | 2,940 | 2,651 | 2,492 | 2,554 | |
| Earnings per share (EPS)2 | 4.93 | 4.22 | 3.78 | 3.57 | 3.68 | |
| Share price1, 3 | 219.26 | 161.88 | 112.43 | 97.35 | 84.80 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 44.49 | 38.34 | 29.77 | 27.25 | 23.02 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Abbott Laboratories | 48.49 | 41.83 | 56.47 | 220.29 | 55.16 | |
| Anthem Inc. | 15.87 | 15.96 | 21.45 | 15.44 | 17.48 | |
| Becton, Dickinson & Co. | 86.01 | 65.09 | 408.36 | 49.63 | 36.65 | |
| Bristol-Myers Squibb Co. | — | 41.99 | 16.81 | 103.55 | 20.56 | |
| CVS Health Corp. | 12.88 | 14.15 | — | 10.69 | 14.91 | |
| Edwards Lifesciences Corp. | 66.48 | 46.05 | 51.14 | 48.16 | 33.48 | |
| HCA Healthcare Inc. | 16.06 | 14.30 | 12.84 | 15.92 | 11.00 | |
| Intuitive Surgical Inc. | 87.47 | 48.72 | 53.03 | 70.95 | 37.16 | |
| Medtronic PLC | 26.30 | 28.78 | 37.80 | 29.96 | 33.17 | |
| Stryker Corp. | 57.72 | 39.24 | 18.96 | 54.36 | 27.92 | |
| UnitedHealth Group Inc. | 20.54 | 20.48 | 21.09 | 20.77 | 21.73 | |
| P/E Ratio, Sector | ||||||
| Health Care Equipment & Services | 38.06 | 26.82 | 29.27 | 27.92 | 23.23 | |
| P/E Ratio, Industry | ||||||
| Health Care | 32.78 | 22.47 | 25.66 | 30.91 | 21.33 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Data adjusted for splits and stock dividends.
2 2020 Calculation
EPS = Net earnings attributable to common stockholders ÷ No. shares of common stock outstanding
= 3,510,000,000 ÷ 712,204,198 = 4.93
3 Closing price as at the filing date of Danaher Corp. Annual Report.
4 2020 Calculation
P/E ratio = Share price ÷ EPS
= 219.26 ÷ 4.93 = 44.49
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/E ratio | The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. | Danaher Corp. P/E ratio increased from 2018 to 2019 and from 2019 to 2020. |
Price to Operating Profit (P/OP)
Danaher Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 712,204,198 | 696,237,113 | 701,875,340 | 697,569,470 | 693,280,277 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 4,231 | 3,269 | 3,404 | 3,021 | 2,751 | |
| Operating profit per share2 | 5.94 | 4.70 | 4.85 | 4.33 | 3.97 | |
| Share price1, 3 | 219.26 | 161.88 | 112.43 | 97.35 | 84.80 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 36.91 | 34.47 | 23.18 | 22.48 | 21.37 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Abbott Laboratories | 40.69 | 34.03 | 36.64 | 60.88 | 24.25 | |
| Anthem Inc. | 12.10 | 13.55 | 15.87 | 14.81 | 9.36 | |
| Becton, Dickinson & Co. | 44.46 | 40.02 | 43.37 | 34.59 | 25.02 | |
| Bristol-Myers Squibb Co. | — | 24.42 | 16.16 | 28.87 | 19.79 | |
| CVS Health Corp. | 6.65 | 7.83 | 18.65 | 7.44 | 7.65 | |
| Edwards Lifesciences Corp. | 60.98 | 42.04 | 49.37 | 25.66 | 25.38 | |
| HCA Healthcare Inc. | 8.31 | 6.93 | 6.88 | 5.82 | 5.11 | |
| Intuitive Surgical Inc. | 88.37 | 48.89 | 49.87 | 44.40 | 28.93 | |
| Medtronic PLC | 26.29 | 21.26 | 17.64 | 22.64 | 22.18 | |
| Stryker Corp. | 41.52 | 30.13 | 26.55 | 24.21 | 21.23 | |
| UnitedHealth Group Inc. | 14.12 | 14.40 | 14.58 | 14.42 | 11.79 | |
| P/OP Ratio, Sector | ||||||
| Health Care Equipment & Services | 24.53 | 18.40 | 18.84 | 17.72 | 14.11 | |
| P/OP Ratio, Industry | ||||||
| Health Care | 23.35 | 18.19 | 18.66 | 17.23 | 14.59 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Data adjusted for splits and stock dividends.
2 2020 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 4,231,000,000 ÷ 712,204,198 = 5.94
3 Closing price as at the filing date of Danaher Corp. Annual Report.
4 2020 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 219.26 ÷ 5.94 = 36.91
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/OP ratio | Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. | Danaher Corp. P/OP ratio increased from 2018 to 2019 and from 2019 to 2020. |
Price to Sales (P/S)
Danaher Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 712,204,198 | 696,237,113 | 701,875,340 | 697,569,470 | 693,280,277 | |
| Selected Financial Data (US$) | ||||||
| Sales (in millions) | 22,284 | 17,911 | 19,893 | 18,330 | 16,882 | |
| Sales per share2 | 31.29 | 25.73 | 28.34 | 26.28 | 24.35 | |
| Share price1, 3 | 219.26 | 161.88 | 112.43 | 97.35 | 84.80 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 7.01 | 6.29 | 3.97 | 3.70 | 3.48 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Abbott Laboratories | 6.30 | 4.83 | 4.37 | 3.84 | 3.70 | |
| Anthem Inc. | 0.60 | 0.74 | 0.88 | 0.67 | 0.51 | |
| Becton, Dickinson & Co. | 3.85 | 4.07 | 4.06 | 4.23 | 2.87 | |
| Bristol-Myers Squibb Co. | 3.16 | 5.52 | 3.67 | 5.02 | 4.72 | |
| CVS Health Corp. | 0.35 | 0.37 | 0.39 | 0.38 | 0.45 | |
| Edwards Lifesciences Corp. | 12.48 | 11.09 | 9.92 | 8.18 | 6.43 | |
| HCA Healthcare Inc. | 1.17 | 0.98 | 1.04 | 0.81 | 0.77 | |
| Intuitive Surgical Inc. | 21.29 | 15.01 | 16.06 | 14.97 | 10.11 | |
| Medtronic PLC | 4.36 | 4.36 | 3.92 | 4.06 | 4.07 | |
| Stryker Corp. | 6.43 | 5.49 | 4.95 | 4.46 | 4.06 | |
| UnitedHealth Group Inc. | 1.24 | 1.18 | 1.12 | 1.10 | 0.83 | |
| P/S Ratio, Sector | ||||||
| Health Care Equipment & Services | 1.71 | 1.65 | 1.58 | 1.50 | 1.29 | |
| P/S Ratio, Industry | ||||||
| Health Care | 2.71 | 2.54 | 2.52 | 2.47 | 2.26 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Data adjusted for splits and stock dividends.
2 2020 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= 22,284,000,000 ÷ 712,204,198 = 31.29
3 Closing price as at the filing date of Danaher Corp. Annual Report.
4 2020 Calculation
P/S ratio = Share price ÷ Sales per share
= 219.26 ÷ 31.29 = 7.01
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Danaher Corp. P/S ratio increased from 2018 to 2019 and from 2019 to 2020. |
Price to Book Value (P/BV)
Danaher Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 712,204,198 | 696,237,113 | 701,875,340 | 697,569,470 | 693,280,277 | |
| Selected Financial Data (US$) | ||||||
| Total Danaher stockholders’ equity (in millions) | 39,766 | 30,271 | 28,214 | 26,358 | 23,003 | |
| Book value per share (BVPS)2 | 55.84 | 43.48 | 40.20 | 37.79 | 33.18 | |
| Share price1, 3 | 219.26 | 161.88 | 112.43 | 97.35 | 84.80 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 3.93 | 3.72 | 2.80 | 2.58 | 2.56 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Abbott Laboratories | 6.65 | 4.96 | 4.38 | 3.40 | 3.76 | |
| Anthem Inc. | 2.19 | 2.42 | 2.82 | 2.24 | 1.72 | |
| Becton, Dickinson & Co. | 2.78 | 3.34 | 3.09 | 3.95 | 4.69 | |
| Bristol-Myers Squibb Co. | 3.55 | 2.80 | 5.89 | 8.88 | 5.66 | |
| CVS Health Corp. | 1.33 | 1.47 | 1.29 | 1.88 | 2.15 | |
| Edwards Lifesciences Corp. | 11.97 | 11.62 | 11.76 | 9.51 | 7.28 | |
| HCA Healthcare Inc. | 105.40 | — | — | — | — | |
| Intuitive Surgical Inc. | 9.53 | 8.13 | 8.96 | 9.91 | 4.73 | |
| Medtronic PLC | 2.48 | 2.66 | 2.31 | 2.40 | 2.25 | |
| Stryker Corp. | 7.05 | 6.38 | 5.74 | 5.56 | 4.82 | |
| UnitedHealth Group Inc. | 4.83 | 4.92 | 4.89 | 4.59 | 3.98 | |
| P/BV Ratio, Sector | ||||||
| Health Care Equipment & Services | 3.89 | 3.66 | 3.67 | 3.78 | 3.39 | |
| P/BV Ratio, Industry | ||||||
| Health Care | 5.16 | 4.90 | 4.86 | 4.52 | 4.09 | |
Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 Data adjusted for splits and stock dividends.
2 2020 Calculation
BVPS = Total Danaher stockholders’ equity ÷ No. shares of common stock outstanding
= 39,766,000,000 ÷ 712,204,198 = 55.84
3 Closing price as at the filing date of Danaher Corp. Annual Report.
4 2020 Calculation
P/BV ratio = Share price ÷ BVPS
= 219.26 ÷ 55.84 = 3.93
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Danaher Corp. P/BV ratio increased from 2018 to 2019 and from 2019 to 2020. |