Danaher Corporation

Methodology

Danaher's diversified life sciences and diagnostics portfolio generates predictable earnings with limited cyclicality, making fair value calculations highly reliable. The Danaher Business System drives consistent margin expansion and operational excellence. Fair value works well when accounting for mid-to-high single-digit organic growth plus strategic M&A contributions.

Methodology

Danaher consistently trades at PEG ratios between 2.0-3.5x, reflecting premium valuations for its exceptional business quality, portfolio management discipline, and compounding track record. The company's bioprocessing and diagnostics franchises command higher multiples than industrial peers. PEG appears expensive but reflects sustainable competitive advantages and proven capital allocation.

Methodology

Danaher pays a minimal dividend yielding under 0.5%, making PEGY nearly identical to PEG for valuation purposes. Management prioritizes strategic acquisitions and organic reinvestment to compound earnings growth rather than current income. Total return focuses on earnings compounding through operational improvement and portfolio optimization rather than dividend income.