Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

Danaher Corp., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net earnings	3,614)	3,899)	4,764)	7,209)	6,433)
Net noncash charges	3,521)	2,987)	2,196)	2,829)	2,583)
Change in operating capital	(719)	(198)	(470)	(1,519)	(658)
Net cash provided by operating activities	6,416)	6,688)	6,490)	8,519)	8,358)
Payments for additions to property, plant and equipment	(1,156)	(1,392)	(1,383)	(1,152)	(1,294)
Proceeds from sales of property, plant and equipment	33)	13)	12)	9)	13)
Net proceeds from (repayments of) borrowings, maturities of 90 days or less	(11)	5)	(1,006)	(723)	2,265)
Borrowings, maturities longer than 90 days	1,556)	—)	—)	—)	984)
Repayments of borrowings, maturities longer than 90 days	(500)	(1,674)	(620)	(965)	(1,186)
Make-whole premiums to redeem borrowings prior to maturity	—)	—)	—)	—)	(96)
Free cash flow to equity (FCFE)	6,338)	3,640)	3,493)	5,688)	9,044)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The financial information reveals fluctuations in both net cash provided by operating activities and free cash flow to equity (FCFE) over the five-year period. Operating cash flow demonstrates a moderate initial increase followed by a decline, while FCFE exhibits a more pronounced pattern of volatility.

Net Cash from Operations: Net cash provided by operating activities increased from US$8,358 million in 2021 to US$8,519 million in 2022, representing a modest growth rate. However, a subsequent decrease is observed, falling to US$6,490 million in 2023. This trend partially reverses in 2024, with a rise to US$6,688 million, but then declines again to US$6,416 million in 2025. Overall, operating cash flow demonstrates a generally decreasing trend when comparing the beginning and end of the period.
Free Cash Flow to Equity (FCFE): FCFE experienced a significant decrease from US$9,044 million in 2021 to US$5,688 million in 2022. This downward trend continues into 2023, with FCFE reaching US$3,493 million. A slight increase is noted in 2024, to US$3,640 million, but the most substantial change occurs in 2025, where FCFE rises considerably to US$6,338 million. The FCFE trajectory indicates substantial volatility, with a recovery towards levels seen earlier in the period in the final year.

The divergence between operating cash flow and FCFE suggests that factors beyond core operations, such as financing activities or investment decisions, are significantly influencing the cash available to equity holders. The substantial increase in FCFE in 2025, despite relatively stable operating cash flow, warrants further investigation to understand the underlying drivers of this change.

The observed patterns indicate a period of fluctuating cash generation for equity holders, with a notable recovery in the most recent year. Continued monitoring of these trends, alongside a deeper analysis of the components of FCFE, is recommended.

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Price to FCFE Ratio, Current

Danaher Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	707,770,627
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	6,338)
FCFE per share	8.95
Current share price (P)	197.93
Valuation Ratio
P/FCFE	22.10
Benchmarks
P/FCFE, Competitors¹
AbbVie Inc.	26.37
Amgen Inc.	83.55
Bristol-Myers Squibb Co.	15.48
Eli Lilly & Co.	67.16
Gilead Sciences Inc.	21.25
Johnson & Johnson	21.58
Merck & Co. Inc.	13.48
Pfizer Inc.	15.40
Regeneron Pharmaceuticals Inc.	18.22
Thermo Fisher Scientific Inc.	16.65
Vertex Pharmaceuticals Inc.	42.03
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences	26.68
P/FCFE, Industry
Health Care	26.31

Based on: 10-K (reporting date: 2025-12-31).

¹ Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

Danaher Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
No. shares of common stock outstanding¹	707,139,356	714,709,852	739,701,725	728,576,886	715,352,586
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	6,338)	3,640)	3,493)	5,688)	9,044)
FCFE per share³	8.96	5.09	4.72	7.81	12.64
Share price^1, 4	209.19	207.95	250.65	250.11	262.39
Valuation Ratio
P/FCFE⁵	23.34	40.83	53.08	32.04	20.75
Benchmarks
P/FCFE, Competitors⁶
AbbVie Inc.	22.73	13.57	17.37	22.66	18.76
Amgen Inc.	82.34	25.50	4.71	8.32	13.52
Bristol-Myers Squibb Co.	15.91	4.74	7.52	22.85	16.17
Eli Lilly & Co.	57.54	64.93	75.06	60.51	35.17
Gilead Sciences Inc.	23.90	12.07	12.81	15.22	12.70
Johnson & Johnson	19.79	12.67	24.31	16.73	23.28
Merck & Co. Inc.	12.91	11.32	24.48	22.40	18.72
Pfizer Inc.	17.12	55.28	3.82	10.56	8.88
Regeneron Pharmaceuticals Inc.	21.76	22.02	28.02	25.12	10.35
Thermo Fisher Scientific Inc.	16.54	41.23	31.16	27.98	13.44
Vertex Pharmaceuticals Inc.	39.16	—	33.45	19.91	26.08
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences	24.91	20.01	16.93	19.44	16.49
P/FCFE, Industry
Health Care	24.43	19.36	18.20	18.50	17.94

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,338,000,000 ÷ 707,139,356 = 8.96

⁴ Closing price as at the filing date of Danaher Corp. Annual Report.

⁵ 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 209.19 ÷ 8.96 = 23.34

⁶ Click competitor name to see calculations.

The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits considerable fluctuation over the observed period. Initially, the ratio increased significantly before declining, suggesting shifts in investor sentiment and valuation relative to the company’s free cash flow generation.

Share Price: The share price experienced a decrease from $262.39 in 2021 to $250.11 in 2022, followed by a slight increase to $250.65 in 2023. A more substantial decline occurred in 2024, reaching $207.95, with a modest recovery to $209.19 in 2025. This indicates overall downward pressure on the stock price during the latter part of the period.
FCFE per Share: Free Cash Flow to Equity per share decreased notably from $12.64 in 2021 to $7.81 in 2022. This downward trend continued to $4.72 in 2023, representing the lowest value within the observed timeframe. A slight recovery to $5.09 occurred in 2024, followed by a more pronounced increase to $8.96 in 2025. This suggests improving cash flow generation towards the end of the period.
P/FCFE Ratio: The P/FCFE ratio increased from 20.75 in 2021 to 32.04 in 2022, coinciding with the decrease in FCFE per share. The ratio peaked at 53.08 in 2023, reflecting a significant premium investors were willing to pay for each dollar of FCFE. A decrease to 40.83 in 2024 was observed, followed by a substantial decline to 23.34 in 2025. This final decrease aligns with the increasing FCFE per share and the relatively stable share price, indicating a more reasonable valuation.

The observed pattern suggests that investor valuation, as reflected in the P/FCFE ratio, was initially increasing despite declining FCFE. However, as FCFE began to recover in 2024 and 2025, the P/FCFE ratio decreased, potentially indicating a correction in valuation or a shift in investor expectations. The volatility in the P/FCFE ratio warrants further investigation into the underlying drivers of both the share price and FCFE.