DHR
Danaher Corporation
Hybrid Industrial
★ Quality 25/100Price today
$174.59
what the market pays
Worth
$45.49
calculated cycle value
Price is 284% above its value
charlieapp.co
Price vs Intrinsic Value
The line is the price month by month; the green band marks when it's undervalued (−20% off value). When the price drops in there, the discount is real, not opinion.
Where does the value come from?
Manufacturing + technology
$71.21
per share
How it's calculated
Danaher: instruments and consumables for life sciences and diagnostics. Revenue $24.6B, gross margin 59%, FCF $5.3B. Growth is flat today due to post-COVID bioprocessing destocking (customers burning through the inventory they piled up). The model values it cautiously on depressed cash flow; the market pays well above, betting on reacceleration.
Net cash in the bank
cash minus financial debt, per share
Total calculated value
business + cash
How many times the cash flow
Hybrid Industrial · vs 28 peers
You pay 25.3x times this business's cash flow; its sector median is 35.5x.
64% above what Charlie thinks it's worth (9x) — you're overpaying, sector or no sector.
Why Overvalued?
Its free cash flow is $7.91/share × 9.0x multiplier minus $25.72 in negative net cash = $45.49 in intrinsic value. Today's price of $174.59 is 74% above the calculated value — the market is paying a premium over what the model sees as fair.
The price is 284% above the calculated value. You're paying more than it's worth.
Buying here lowers your expected return and wipes out the safety margin.
The next reasonable entry zone starts at $43.22.
At what price would buying make sense?
Entry zones
🟢 Undervalued
≤$36.39
-20% off Value
🟡 Discounted
≤$43.22
-5% off Value
🔴 Today
$174.59
-74% Valor
Overvalued
The market prices it too high versus what the business makes. Patience pays off here.
“Time is the friend of the wonderful company, the enemy of the mediocre.”
— Warren Buffett
Model updated · July 2026
The business
They bought gold during the COVID fever; now they're paying for the inventory hangover.
Danaher sells instruments and consumables for life sciences and medical diagnostics: lab equipment, reagents, and bioprocessing tools to manufacture drugs. It makes money on the initial device sale and, above all, on the recurring consumables each test requires.
The real moat is the consumables: once a lab validates a piece of equipment and its reagents, switching means recertifying regulated processes, which is expensive and slow. That generates sticky repeat revenue. But competition is fierce and the model doesn't grant it a dominant edge.
Revenue history
From $29.5B to $24.6B in 4 years. Sales are shrinking — the engine is losing steam.
Where each $100 of sales goes
Revenue $24.6B · FY2025
Of every $100 in sales, $85 goes to costs and operations; $15 is left as net profit (15% margin).
Catalysts and risks
End of bioprocessing destocking: when customers burn through the inventory piled up during the pandemic and start ordering again.
Recovery in biopharma research spending and lab funding.
59% gross margin that protects cash flow if volume rebounds.
The market is already paying for a reacceleration that hasn't arrived; if it's slow, the price is too high.
Debt of $18.4 billion against near-zero cash limits maneuvering room.
Flat growth today: revenue stuck around $24 billion since the Veralto spinoff.
Charlie's note
“A decent-quality business bought at an excellent price: the market pays well above 9x cash flow betting on growth that today is 0%. Paying for hope rarely ends well.”
Analysis · June 2026
So when would be a good price for Danaher Corporation?
By our calculation, not yet. We will email you the day it drops to $43.22 — so you do not have to keep checking.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.