Danaher Corp., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net earnings	4,764)	7,209)	6,433)	3,646)	3,008)
Net noncash charges	915)	2,270)	2,354)	2,508)	364)
Change in operating capital	811)	(960)	(429)	61)	285)
Net cash provided by operating activities	6,490)	8,519)	8,358)	6,215)	3,657)
Interest payments, net of tax¹	328)	302)	377)	268)	95)
Payments for additions to property, plant and equipment	(1,383)	(1,152)	(1,294)	(791)	(636)
Proceeds from sales of property, plant and equipment	12)	9)	13)	2)	13)
Free cash flow to the firm (FCFF)	5,447)	7,678)	7,454)	5,694)	3,130)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Danaher Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Danaher Corp. FCFF increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Danaher Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	16.30%	13.10%	16.50%	18.90%	26.40%
Interest Paid, Net of Tax
Interest payments, before tax	392)	347)	452)	331)	129)
Less: Interest payments, tax²	64)	45)	75)	63)	34)
Interest payments, net of tax	328)	302)	377)	268)	95)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² 2023 Calculation
Interest payments, tax = Interest payments × EITR
= 392 × 16.30% = 64

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Danaher Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	191,074)
Free cash flow to the firm (FCFF)	5,447)
Valuation Ratio
EV/FCFF	35.08
Benchmarks
EV/FCFF, Competitors¹
AbbVie Inc.	16.71
Amgen Inc.	23.80
Bristol-Myers Squibb Co.	10.15
Eli Lilly & Co.	706.01
Gilead Sciences Inc.	15.89
Johnson & Johnson	19.49
Merck & Co. Inc.	30.57
Moderna Inc.	—
Pfizer Inc.	32.51
Regeneron Pharmaceuticals Inc.	21.03
Thermo Fisher Scientific Inc.	28.70
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	28.94
EV/FCFF, Industry
Health Care	24.84

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Danaher Corp., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	197,948)	197,582)	210,569)	174,606)	116,135)
Free cash flow to the firm (FCFF)²	5,447)	7,678)	7,454)	5,694)	3,130)
Valuation Ratio
EV/FCFF³	36.34	25.74	28.25	30.66	37.11
Benchmarks
EV/FCFF, Competitors⁴
AbbVie Inc.	14.89	12.15	13.18	13.95	11.60
Amgen Inc.	22.22	16.01	15.82	14.51	16.05
Bristol-Myers Squibb Co.	9.14	13.87	10.52	11.63	23.39
Eli Lilly & Co.	655.33	59.14	38.37	39.01	36.26
Gilead Sciences Inc.	13.41	13.58	8.42	13.60	9.78
Johnson & Johnson	19.30	23.80	21.25	20.75	19.31
Merck & Co. Inc.	37.84	19.09	23.27	34.12	20.46
Moderna Inc.	—	11.76	3.86	29.20	—
Pfizer Inc.	32.24	9.15	8.40	21.74	19.44
Regeneron Pharmaceuticals Inc.	23.99	17.96	9.81	25.74	19.54
Thermo Fisher Scientific Inc.	28.85	31.61	33.14	26.14	28.88
EV/FCFF, Sector
Pharmaceuticals, Biotechnology & Life Sciences	28.47	17.82	15.03	20.02	19.33
EV/FCFF, Industry
Health Care	24.38	17.63	16.41	17.93	18.26

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 197,948 ÷ 5,447 = 36.34

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Danaher Corp. EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Danaher Corp. (NYSE:DHR)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical