Becton, Dickinson and Company

BDX

HealthcareMedical - Instruments & SuppliesNYSE

$144.18

Market Cap: $52.24B

Becton, Dickinson and Company (BDX) Valuation Summary

Updated Apr 28, 2026 22:22

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$42.65 – $300.23	$96.00	-35.8%
Growth Exit 10Y	$50.32 – $303.83	$103.53	-30.8%
EBITDA Exit 5Y	$101.65 – $216.60	$154.50	+3.3%
EBITDA Exit 10Y	$93.49 – $224.42	$149.82	+0.2%
▸ Trading Multiples
P/E	$146.90 – $230.74	$217.56	+45.5%
EV/EBITDA	$233.36 – $478.55	$228.05	+52.5%
EV/Revenue	$232.12 – $524.90	$352.10	+135.5%
▸ PEG
PEG Fair Value	$312.22 – $312.22	$312.22	+108.8%
▸ Earnings Power Value
Earnings Power Value	$40.92 – $92.39	$61.58	-58.8%
▸ Dividend Discount
Dividend Discount	$50.70 – $111.11	$71.56	-52.1%

Valuation History

DCF Analysis

Fair Value

$96.00

Market Price

$144.18

Upside / Downside

-33.4%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Becton, Dickinson and Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -12.3% to 3.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 48, DPO 59, DIO 112). At a 7.6% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $96.00 per share, suggesting BDX is overvalued by 33.4% at the current price of $144.18.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	2,180	2,239	2,320	2,405	2,494	2,556
(−) Net Interest	472	484	502	520	540	553
(+) D&A	913	844	832	846	896	919
EBITDA	3,565	3,568	3,653	3,771	3,930	4,028

(−) Tax	206	212	219	227	236	242
(−) CapEx	888	912	944	979	1,015	1,041
(−) ΔWC	-855	110	150	159	165	169
Free Cash Flow (FCFF)	3,326	2,335	2,340	2,406	2,514	2,577

Terminal Value						50,463
WACC / Discount Rate	7.6%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,206	2,091	1,948	1,861	1,807	34,978

Enterprise Value	45,893
Projection Period	10,915	23.8%
Terminal Value	34,978	76.2%

(−) Current Net Debt	18,330

Equity Value	27,563
(/) Outstanding Shares	287

Fair Price	$96.00

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.6%	$142	$165	$196	$238	$300
6.6%	$103	$116	$134	$156	$185
7.6%	$76	$85	$96	$109	$126
8.6%	$57	$63	$71	$79	$90
9.6%	$43	$47	$52	$59	$66

Current price: $144.18. Green = undervalued, Red = overvalued.

Fair Value

$103.53

Market Price

$144.18

Upside / Downside

-28.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Becton, Dickinson and Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -12.3% to 3.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 48, DPO 59, DIO 112). At a 7.6% WACC with mid-year discounting, the terminal value (60% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $103.53 per share, suggesting BDX is overvalued by 28.2% at the current price of $144.18.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	2,180	2,239	2,320	2,405	2,494	2,576	2,660	2,745	2,830	2,917	2,990
(−) Net Interest	472	484	502	520	540	557	575	594	612	631	647
(+) D&A	913	844	832	846	896	948	980	1,014	1,049	1,083	1,110
EBITDA	3,565	3,568	3,653	3,771	3,930	4,081	4,215	4,352	4,491	4,631	4,747

(−) Tax	206	212	219	227	236	243	251	259	267	276	283
(−) CapEx	888	912	944	979	1,015	1,049	1,083	1,117	1,152	1,187	1,217
(−) ΔWC	-855	110	150	159	165	153	156	158	160	161	165
Free Cash Flow (FCFF)	3,326	2,335	2,340	2,406	2,514	2,636	2,725	2,818	2,912	3,007	3,082

Terminal Value											60,362
WACC / Discount Rate	7.6%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,206	2,091	1,948	1,861	1,807	1,761	1,692	1,626	1,562	1,499	29,000

Enterprise Value	48,055
Projection Period	19,055	39.7%
Terminal Value	29,000	60.3%

(−) Current Net Debt	18,330

Equity Value	29,725
(/) Outstanding Shares	287

Fair Price	$103.53

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.6%	$160	$181	$209	$247	$304
6.6%	$116	$128	$143	$162	$188
7.6%	$87	$95	$104	$114	$128
8.6%	$66	$71	$77	$84	$92
9.6%	$50	$54	$58	$62	$68

Current price: $144.18. Green = undervalued, Red = overvalued.

Fair Value

$154.47

Market Price

$144.18

Upside / Downside

+7.1%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Becton, Dickinson and Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -12.3% to 3.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 48, DPO 59, DIO 112). At a 7.6% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.5x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $154.50 per share, suggesting BDX is fairly valued by 7.2% at the current price of $144.18.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

EV/EBITDA Exit Multiple

18.54x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	2,180	2,239	2,320	2,405	2,494	2,556
(−) Net Interest	472	484	502	520	540	553
(+) D&A	913	844	832	846	896	919
EBITDA	3,565	3,568	3,653	3,771	3,930	4,028

(−) Tax	206	212	219	227	236	—
(−) CapEx	888	912	944	979	1,015	—
(−) ΔWC	-855	110	150	159	165	—
Free Cash Flow (FCF)	3,326	2,335	2,340	2,406	2,514	—

Peers' EBITDA Multiple						18.5x
Terminal Value						74,684
WACC / Discount Rate	7.61%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,206	2,091	1,948	1,861	1,807	51,766

Enterprise Value	62,681
Projection Period	10,915	17.4%
Terminal Value	51,766	82.6%

(−) Current Net Debt	18,330
Equity Value	44,351
(÷) Outstanding Shares	287M
Fair Price	$154	+7.1%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.5x	16.5x	18.5x	20.5x	22.5x
5.6%	$131	$153	$174	$195	$217
6.6%	$123	$144	$164	$184	$205
7.6%	$116	$135	$155	$174	$193
8.6%	$108	$127	$146	$164	$183
9.6%	$102	$119	$137	$155	$173

Current price: $144.18. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$149.79

Market Price

$144.18

Upside / Downside

+3.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Becton, Dickinson and Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -12.3% to 3.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 48, DPO 59, DIO 112). At a 7.6% WACC with mid-year discounting, the terminal value (69% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.5x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $149.82 per share, suggesting BDX is fairly valued by 3.9% at the current price of $144.18.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

EV/EBITDA Exit Multiple

18.54x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	2,180	2,239	2,320	2,405	2,494	2,576	2,660	2,745	2,830	2,917	2,990
(−) Net Interest	472	484	502	520	540	557	575	594	612	631	647
(+) D&A	913	844	832	846	896	948	980	1,014	1,049	1,083	1,110
EBITDA	3,565	3,568	3,653	3,771	3,930	4,081	4,215	4,352	4,491	4,631	4,747

(−) Tax	206	212	219	227	236	243	251	259	267	276	—
(−) CapEx	888	912	944	979	1,015	1,049	1,083	1,117	1,152	1,187	—
(−) ΔWC	-855	110	150	159	165	153	156	158	160	161	—
Free Cash Flow (FCF)	3,326	2,335	2,340	2,406	2,514	2,636	2,725	2,818	2,912	3,007	—

Peers' EBITDA Multiple											18.5x
Terminal Value											88,009
WACC / Discount Rate	7.61%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,206	2,091	1,948	1,861	1,807	1,761	1,692	1,626	1,562	1,499	42,283

Enterprise Value	61,338
Projection Period	19,055	31.1%
Terminal Value	42,283	68.9%

(−) Current Net Debt	18,330
Equity Value	43,008
(÷) Outstanding Shares	287M
Fair Price	$150	+3.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.5x	16.5x	18.5x	20.5x	22.5x
5.6%	$148	$167	$186	$205	$224
6.6%	$132	$150	$167	$185	$202
7.6%	$118	$134	$150	$166	$182
8.6%	$105	$120	$134	$149	$163
9.6%	$93	$107	$120	$133	$146

Current price: $144.18. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$218.51

Market Price

$144.18

Upside / Downside

+51.6%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Becton, Dickinson and Company (BDX) has a fair value of $218.51 based on 9 comparable companies in the Medical - Instruments & Supplies industry.

P/E Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Becton, Dickinson and CompanyBDX	41,397	24.7x	11.5x
Cardinal Health, Inc.CAH	48,386	31.9x	19.9x
argenx SEARGX	47,961	39.5x	29.6x
Edwards Lifesciences CorporationEW	47,438	45.0x	27.4x
IDEXX Laboratories, Inc.IDXX	45,250	43.4x	39.2x
Alcon Inc.ALC	36,752	38.1x	21.9x
Agilent Technologies, Inc.A	32,462	25.1x	19.2x
ResMed Inc.RMD	31,633	22.8x	19.7x
IQVIA Holdings Inc.IQV	26,979	20.3x	12.5x
Veeva Systems Inc.VEEV	26,058	29.1x	17.9x
Industry Median		31.9x	19.9x
(*) Profit after tax		1,678	3,613
Equity Value		53,493	71,985
(/) Outstanding shares		287	287
Fair Price		$186	$251

Selected Fair Value (avg of trailing + forward)

$218.51

+51.6%

Fair Value

$228.38

Market Price

$144.18

Upside / Downside

+58.4%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Becton, Dickinson and Company (BDX) has a fair value of $228.38 based on 9 comparable companies in the Medical - Instruments & Supplies industry.

EV/EBITDA Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Becton, Dickinson and CompanyBDX	41,397	12.0x	13.7x
Cardinal Health, Inc.CAH	48,386	17.3x	14.9x
argenx SEARGX	47,961	45.8x	32.0x
Edwards Lifesciences CorporationEW	47,438	31.6x	28.4x
IDEXX Laboratories, Inc.IDXX	45,250	31.4x	28.9x
Alcon Inc.ALC	36,752	17.2x	16.1x
Agilent Technologies, Inc.A	32,462	18.5x	17.4x
ResMed Inc.RMD	31,633	16.3x	14.9x
IQVIA Holdings Inc.IQV	26,979	11.9x	11.2x
Veeva Systems Inc.VEEV	26,058	27.0x	24.0x
Industry Median		18.5x	17.4x
(*) EBITDA		4,957	4,357
= Enterprise Value		91,921	75,884
(-) Net Debt		18,330	18,330
Equity Value		73,591	57,554
(/) Outstanding shares		287	287
Fair Price		$256	$200

Selected Fair Value (avg of trailing + forward)

$228.38

+58.4%

Fair Value

$352.57

Market Price

$144.18

Upside / Downside

+144.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Becton, Dickinson and Company (BDX) has a fair value of $352.57 based on 9 comparable companies in the Medical - Instruments & Supplies industry.

EV/Revenue Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Becton, Dickinson and CompanyBDX	41,397	2.7x	3.1x
Cardinal Health, Inc.CAH	48,386	0.2x	0.2x
argenx SEARGX	47,961	10.7x	7.5x
Edwards Lifesciences CorporationEW	47,438	7.5x	6.7x
IDEXX Laboratories, Inc.IDXX	45,250	10.7x	9.9x
Alcon Inc.ALC	36,752	3.9x	3.6x
Agilent Technologies, Inc.A	32,462	4.9x	4.6x
ResMed Inc.RMD	31,633	6.1x	5.5x
IQVIA Holdings Inc.IQV	26,979	2.5x	2.4x
Veeva Systems Inc.VEEV	26,058	7.7x	6.9x
Industry Median		6.1x	5.5x
(*) Revenue		21,839	19,196
= Enterprise Value		132,719	106,397
(-) Net Debt		18,330	18,330
Equity Value		114,389	88,067
(/) Outstanding shares		287	287
Fair Price		$398	$307

Selected Fair Value (avg of trailing + forward)

$352.57

+144.5%

PEG Fair Value

Fair Value

$312.22

Market Price

$144.18

Upside / Downside

+116.5%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 25.0% plus 2.2% dividend yield, the company has a fair value of $312.22 based on NTM EPS (FY2026) of $12.49. The current PEG ratio is 0.47.

PEG Ratio

0.47Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 12.0 ÷ (23.2% + 2.2%) = 0.47

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	23.2%
Dividend Yield	+2.2%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$12.49
Fair Value	$312.22

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$5.83	—	—
FY2026E	$12.49	+114.2%	9
FY2027E	$13.45	+7.7%	9
FY2028E	$14.28	+6.2%	7
FY2029E	$15.22	+6.6%	3
FY2030E	$16.53	+8.6%	6

5Y Forward EPS CAGR: 23.2%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$2.1B	$6.85	—
FY2022	$1.8B	$5.88	-14.2%
FY2023	$1.5B	$4.94	-16.0%
FY2024	$1.7B	$5.86	+18.6%
FY2025	$1.7B	$5.83	-0.5%

4Y Historical EPS CAGR: -4.0%

Earnings Power Value

Fair Value

$61.58

Market Price

$144.18

Upside / Downside

-57.3%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.6% and normalized earnings of $2.7B, the company has a fair value of $61.58 per share. The EPV range is $40.92 – $92.39 based on WACC sensitivity (6.1% – 9.1%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	2,739	2,739	2,739
(/) WACC	9.1%	7.6%	6.1%
Enterprise Value	30,078	36,009	44,856
(-) Net debt	18,330	18,330	18,330
Equity Value	11,748	17,679	26,526
(/) Outstanding shares	287	287	287
Fair Price	$40.92	$61.58	$92.39

Dividend Discount Model

Fair Value

$71.56

Market Price

$144.18

Upside / Downside

-50.4%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 9.3% and projected dividend growth of 5.5%, the fair value is $71.56 per share. The DDM range is $50.70 – $111.11 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$4.17

Dividend Yield

2.21%

Payout Ratio

71.3%

Dividend Coverage

1.40x

FCF Payout Ratio44.8%

DPS CAGR (4Y)3.8%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$4.17	71.3%	+10.2%
2024	$3.78	64.5%	-2.1%
2023	$3.86	75.1%	+2.6%
2022	$3.77	60.8%	+4.9%
2021	$3.59	50.1%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$4.40	5.5%	0.9150	$4.02
2027	$4.64	5.5%	0.8372	$3.88
2028	$4.90	5.5%	0.7661	$3.75
2029	$5.17	5.5%	0.7009	$3.62
2030	$5.45	5.5%	0.6414	$3.50
Terminal Value	$5.59 DPS	2.5%		$52.79

PV of Projected Dividends$18.77

PV of Terminal Value$52.79

Fair Value per Share$71.56

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	3.5%	4.5%	5.5%	6.5%	7.5%
7.3%	$93	$98	$102	$106	$111
8.3%	$77	$81	$84	$88	$92
9.3%	$66	$69	$72	$75	$78
10.3%	$57	$60	$62	$65	$68
11.3%	$51	$53	$55	$57	$60

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Becton, Dickinson and Company (BDX) Valuation Summary

Updated Apr 28, 2026 22:22

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$42.65 – $300.23	$96.00	-35.8%
Growth Exit 10Y	$50.32 – $303.83	$103.53	-30.8%
EBITDA Exit 5Y	$101.65 – $216.60	$154.50	+3.3%
EBITDA Exit 10Y	$93.49 – $224.42	$149.82	+0.2%
▸ Trading Multiples
P/E	$146.90 – $230.74	$217.56	+45.5%
EV/EBITDA	$233.36 – $478.55	$228.05	+52.5%
EV/Revenue	$232.12 – $524.90	$352.10	+135.5%
▸ PEG
PEG Fair Value	$312.22 – $312.22	$312.22	+108.8%
▸ Earnings Power Value
Earnings Power Value	$40.92 – $92.39	$61.58	-58.8%
▸ Dividend Discount
Dividend Discount	$50.70 – $111.11	$71.56	-52.1%

Valuation History

DCF Analysis

Fair Value

$96.00

Market Price

$144.18

Upside / Downside

-33.4%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	2,180	2,239	2,320	2,405	2,494	2,556
(−) Net Interest	472	484	502	520	540	553
(+) D&A	913	844	832	846	896	919
EBITDA	3,565	3,568	3,653	3,771	3,930	4,028

(−) Tax	206	212	219	227	236	242
(−) CapEx	888	912	944	979	1,015	1,041
(−) ΔWC	-855	110	150	159	165	169
Free Cash Flow (FCFF)	3,326	2,335	2,340	2,406	2,514	2,577

Terminal Value						50,463
WACC / Discount Rate	7.6%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,206	2,091	1,948	1,861	1,807	34,978

Enterprise Value	45,893
Projection Period	10,915	23.8%
Terminal Value	34,978	76.2%

(−) Current Net Debt	18,330

Equity Value	27,563
(/) Outstanding Shares	287

Fair Price	$96.00

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.6%	$142	$165	$196	$238	$300
6.6%	$103	$116	$134	$156	$185
7.6%	$76	$85	$96	$109	$126
8.6%	$57	$63	$71	$79	$90
9.6%	$43	$47	$52	$59	$66

Current price: $144.18. Green = undervalued, Red = overvalued.

Fair Value

$103.53

Market Price

$144.18

Upside / Downside

-28.2%

Verdict

Overvalued

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	2,180	2,239	2,320	2,405	2,494	2,576	2,660	2,745	2,830	2,917	2,990
(−) Net Interest	472	484	502	520	540	557	575	594	612	631	647
(+) D&A	913	844	832	846	896	948	980	1,014	1,049	1,083	1,110
EBITDA	3,565	3,568	3,653	3,771	3,930	4,081	4,215	4,352	4,491	4,631	4,747

(−) Tax	206	212	219	227	236	243	251	259	267	276	283
(−) CapEx	888	912	944	979	1,015	1,049	1,083	1,117	1,152	1,187	1,217
(−) ΔWC	-855	110	150	159	165	153	156	158	160	161	165
Free Cash Flow (FCFF)	3,326	2,335	2,340	2,406	2,514	2,636	2,725	2,818	2,912	3,007	3,082

Terminal Value											60,362
WACC / Discount Rate	7.6%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,206	2,091	1,948	1,861	1,807	1,761	1,692	1,626	1,562	1,499	29,000

Enterprise Value	48,055
Projection Period	19,055	39.7%
Terminal Value	29,000	60.3%

(−) Current Net Debt	18,330

Equity Value	29,725
(/) Outstanding Shares	287

Fair Price	$103.53

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.6%	$160	$181	$209	$247	$304
6.6%	$116	$128	$143	$162	$188
7.6%	$87	$95	$104	$114	$128
8.6%	$66	$71	$77	$84	$92
9.6%	$50	$54	$58	$62	$68

Current price: $144.18. Green = undervalued, Red = overvalued.

Fair Value

$154.47

Market Price

$144.18

Upside / Downside

+7.1%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Becton, Dickinson and Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -12.3% to 3.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 48, DPO 59, DIO 112). At a 7.6% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.5x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $154.50 per share, suggesting BDX is fairly valued by 7.2% at the current price of $144.18.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

EV/EBITDA Exit Multiple

18.54x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	2,180	2,239	2,320	2,405	2,494	2,556
(−) Net Interest	472	484	502	520	540	553
(+) D&A	913	844	832	846	896	919
EBITDA	3,565	3,568	3,653	3,771	3,930	4,028

(−) Tax	206	212	219	227	236	—
(−) CapEx	888	912	944	979	1,015	—
(−) ΔWC	-855	110	150	159	165	—
Free Cash Flow (FCF)	3,326	2,335	2,340	2,406	2,514	—

Peers' EBITDA Multiple						18.5x
Terminal Value						74,684
WACC / Discount Rate	7.61%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	3,206	2,091	1,948	1,861	1,807	51,766

Enterprise Value	62,681
Projection Period	10,915	17.4%
Terminal Value	51,766	82.6%

(−) Current Net Debt	18,330
Equity Value	44,351
(÷) Outstanding Shares	287M
Fair Price	$154	+7.1%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.5x	16.5x	18.5x	20.5x	22.5x
5.6%	$131	$153	$174	$195	$217
6.6%	$123	$144	$164	$184	$205
7.6%	$116	$135	$155	$174	$193
8.6%	$108	$127	$146	$164	$183
9.6%	$102	$119	$137	$155	$173

Current price: $144.18. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$149.79

Market Price

$144.18

Upside / Downside

+3.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Becton, Dickinson and Company's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -12.3% to 3.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 48, DPO 59, DIO 112). At a 7.6% WACC with mid-year discounting, the terminal value (69% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.5x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $149.82 per share, suggesting BDX is fairly valued by 3.9% at the current price of $144.18.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

EV/EBITDA Exit Multiple

18.54x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	2,180	2,239	2,320	2,405	2,494	2,576	2,660	2,745	2,830	2,917	2,990
(−) Net Interest	472	484	502	520	540	557	575	594	612	631	647
(+) D&A	913	844	832	846	896	948	980	1,014	1,049	1,083	1,110
EBITDA	3,565	3,568	3,653	3,771	3,930	4,081	4,215	4,352	4,491	4,631	4,747

(−) Tax	206	212	219	227	236	243	251	259	267	276	—
(−) CapEx	888	912	944	979	1,015	1,049	1,083	1,117	1,152	1,187	—
(−) ΔWC	-855	110	150	159	165	153	156	158	160	161	—
Free Cash Flow (FCF)	3,326	2,335	2,340	2,406	2,514	2,636	2,725	2,818	2,912	3,007	—

Peers' EBITDA Multiple											18.5x
Terminal Value											88,009
WACC / Discount Rate	7.61%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	3,206	2,091	1,948	1,861	1,807	1,761	1,692	1,626	1,562	1,499	42,283

Enterprise Value	61,338
Projection Period	19,055	31.1%
Terminal Value	42,283	68.9%

(−) Current Net Debt	18,330
Equity Value	43,008
(÷) Outstanding Shares	287M
Fair Price	$150	+3.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.5x	16.5x	18.5x	20.5x	22.5x
5.6%	$148	$167	$186	$205	$224
6.6%	$132	$150	$167	$185	$202
7.6%	$118	$134	$150	$166	$182
8.6%	$105	$120	$134	$149	$163
9.6%	$93	$107	$120	$133	$146

Current price: $144.18. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$218.51

Market Price

$144.18

Upside / Downside

+51.6%

Verdict

Undervalued

P/E Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Becton, Dickinson and CompanyBDX	41,397	24.7x	11.5x
Cardinal Health, Inc.CAH	48,386	31.9x	19.9x
argenx SEARGX	47,961	39.5x	29.6x
Edwards Lifesciences CorporationEW	47,438	45.0x	27.4x
IDEXX Laboratories, Inc.IDXX	45,250	43.4x	39.2x
Alcon Inc.ALC	36,752	38.1x	21.9x
Agilent Technologies, Inc.A	32,462	25.1x	19.2x
ResMed Inc.RMD	31,633	22.8x	19.7x
IQVIA Holdings Inc.IQV	26,979	20.3x	12.5x
Veeva Systems Inc.VEEV	26,058	29.1x	17.9x
Industry Median		31.9x	19.9x
(*) Profit after tax		1,678	3,613
Equity Value		53,493	71,985
(/) Outstanding shares		287	287
Fair Price		$186	$251

Selected Fair Value (avg of trailing + forward)

$218.51

+51.6%

Fair Value

$228.38

Market Price

$144.18

Upside / Downside

+58.4%

Verdict

Undervalued

EV/EBITDA Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Becton, Dickinson and CompanyBDX	41,397	12.0x	13.7x
Cardinal Health, Inc.CAH	48,386	17.3x	14.9x
argenx SEARGX	47,961	45.8x	32.0x
Edwards Lifesciences CorporationEW	47,438	31.6x	28.4x
IDEXX Laboratories, Inc.IDXX	45,250	31.4x	28.9x
Alcon Inc.ALC	36,752	17.2x	16.1x
Agilent Technologies, Inc.A	32,462	18.5x	17.4x
ResMed Inc.RMD	31,633	16.3x	14.9x
IQVIA Holdings Inc.IQV	26,979	11.9x	11.2x
Veeva Systems Inc.VEEV	26,058	27.0x	24.0x
Industry Median		18.5x	17.4x
(*) EBITDA		4,957	4,357
= Enterprise Value		91,921	75,884
(-) Net Debt		18,330	18,330
Equity Value		73,591	57,554
(/) Outstanding shares		287	287
Fair Price		$256	$200

Selected Fair Value (avg of trailing + forward)

$228.38

+58.4%

Fair Value

$352.57

Market Price

$144.18

Upside / Downside

+144.5%

Verdict

Undervalued

EV/Revenue Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Becton, Dickinson and CompanyBDX	41,397	2.7x	3.1x
Cardinal Health, Inc.CAH	48,386	0.2x	0.2x
argenx SEARGX	47,961	10.7x	7.5x
Edwards Lifesciences CorporationEW	47,438	7.5x	6.7x
IDEXX Laboratories, Inc.IDXX	45,250	10.7x	9.9x
Alcon Inc.ALC	36,752	3.9x	3.6x
Agilent Technologies, Inc.A	32,462	4.9x	4.6x
ResMed Inc.RMD	31,633	6.1x	5.5x
IQVIA Holdings Inc.IQV	26,979	2.5x	2.4x
Veeva Systems Inc.VEEV	26,058	7.7x	6.9x
Industry Median		6.1x	5.5x
(*) Revenue		21,839	19,196
= Enterprise Value		132,719	106,397
(-) Net Debt		18,330	18,330
Equity Value		114,389	88,067
(/) Outstanding shares		287	287
Fair Price		$398	$307

Selected Fair Value (avg of trailing + forward)

$352.57

+144.5%

PEG Fair Value

Fair Value

$312.22

Market Price

$144.18

Upside / Downside

+116.5%

Verdict

Undervalued

PEG Ratio

0.47Deep Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 12.0 ÷ (23.2% + 2.2%) = 0.47

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	23.2%
Dividend Yield	+2.2%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$12.49
Fair Value	$312.22

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$5.83	—	—
FY2026E	$12.49	+114.2%	9
FY2027E	$13.45	+7.7%	9
FY2028E	$14.28	+6.2%	7
FY2029E	$15.22	+6.6%	3
FY2030E	$16.53	+8.6%	6

5Y Forward EPS CAGR: 23.2%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$2.1B	$6.85	—
FY2022	$1.8B	$5.88	-14.2%
FY2023	$1.5B	$4.94	-16.0%
FY2024	$1.7B	$5.86	+18.6%
FY2025	$1.7B	$5.83	-0.5%

4Y Historical EPS CAGR: -4.0%

Earnings Power Value

Fair Value

$61.58

Market Price

$144.18

Upside / Downside

-57.3%

Verdict

Overvalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	2,739	2,739	2,739
(/) WACC	9.1%	7.6%	6.1%
Enterprise Value	30,078	36,009	44,856
(-) Net debt	18,330	18,330	18,330
Equity Value	11,748	17,679	26,526
(/) Outstanding shares	287	287	287
Fair Price	$40.92	$61.58	$92.39

Dividend Discount Model

Fair Value

$71.56

Market Price

$144.18

Upside / Downside

-50.4%

Verdict

Overvalued

Dividend Profile

Current DPS

$4.17

Dividend Yield

2.21%

Payout Ratio

71.3%

Dividend Coverage

1.40x

FCF Payout Ratio44.8%

DPS CAGR (4Y)3.8%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$4.17	71.3%	+10.2%
2024	$3.78	64.5%	-2.1%
2023	$3.86	75.1%	+2.6%
2022	$3.77	60.8%	+4.9%
2021	$3.59	50.1%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$4.40	5.5%	0.9150	$4.02
2027	$4.64	5.5%	0.8372	$3.88
2028	$4.90	5.5%	0.7661	$3.75
2029	$5.17	5.5%	0.7009	$3.62
2030	$5.45	5.5%	0.6414	$3.50
Terminal Value	$5.59 DPS	2.5%		$52.79

PV of Projected Dividends$18.77

PV of Terminal Value$52.79

Fair Value per Share$71.56

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	3.5%	4.5%	5.5%	6.5%	7.5%
7.3%	$93	$98	$102	$106	$111
8.3%	$77	$81	$84	$88	$92
9.3%	$66	$69	$72	$75	$78
10.3%	$57	$60	$62	$65	$68
11.3%	$51	$53	$55	$57	$60