Fortive

Methodology

Fortive's diversified industrial technology portfolio generates relatively stable earnings across intelligent operating systems, precision technologies, and advanced healthcare solutions. The Fortive Business System drives consistent operational improvement. This calculation works well given steady earnings growth from margin expansion and strategic portfolio management.

Methodology

Fortive typically commands premium PEG ratios reflecting its operational excellence, portfolio discipline, and software-like characteristics in industrial markets. The company's capital allocation and M&A capabilities support steady compounding. PEG appears expensive but reflects business quality similar to its Danaher heritage.

Methodology

Fortive pays a minimal dividend making PEGY nearly identical to PEG for valuation purposes. Management prioritizes strategic acquisitions and organic reinvestment to compound earnings growth. Total return focuses primarily on earnings compounding through operational excellence and portfolio optimization rather than income generation.