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Is this Large Market Cap Stock target price reasonable for Danaher Corp. (NYSE:DHR)?

The company in question is, Danaher Corp. (NYSE:DHR) currently with a stock price of 77.55 (-0.84% today). The market cap for Danaher Corp. is 55395.36, and is in the sector Industrial Goods, and Diversified Machinery industry. The target price for Danaher Corp. is 87.75. Currently Danaher Corp. is trading with a P/E of 19.92, and a forward P/E of 20.07. Average volume for Danaher Corp. is 3496.19 and so far today it is 154281.

Performance in the last year for Danaher Corp. has been 19.55%. For EPS growth, Danaher Corp. has seen a growth of 3.30%, and is looking to grow in the next year to 9.50%. More long term stats show that EPS growth has been 7.70% over the last five years and could be 7.80% for the next five years. Danaher Corp. has seen sales growth quarter over quarter at 16.60%, with EPS growth quarter over quarter at -5.50%. The 20-day simple moving average is -3.94%, with the 200-day simple moving average coming to 6.07%.

Since the IPO date for Danaher Corp. on the 11/5/1987, Danaher Corp. has seen performance year to date to be 11.44%. With Danaher Corp. trading at 77.55, the dividend yield is 0.82%, and the EPS is 3.93.

So could Danaher Corp., be undervalued? Well as said before P/E is 19.92. The PEG is 2.55, P/S is 2.51 and the P/B is at 2.16. The P/cash is 13.52, with P/free cash flow at 17.68.

Danaher Corp. ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 1.1. This is with long term debt/equity at 0.48, and total debt/equity at 0.59.

In terms of margins, Danaher Corp. has a gross margin of 52.80%, an operating margin of 16.70% and a profit margin of 15.90%.Payout ratio for Danaher Corp. is 11.60%. Return on assets come to 7.10% with return on investment coming to 7.50%.

Insider ownership for Danaher Corp., is at 0.20% and institutional ownership comes to 77.90%. Outstanding shares are at 708.29. While shares float is 606.06. The float short is currently 1.52%, and short ratio is 2.64.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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