Becton, Dickinson and Company provides solutions which are focused on improving medication management and patient safety, supporting infection prevention practices, equipping surgical and interventional procedures, improving drug delivery, aiding anesthesiology and respiratory care, advancing cellular research and applications, enhancing the diagnosis of infectious diseases and cancers, and supporting the management of diabetes. The company was founded in 1897 and is based in Franklin Lakes, New Jersey.
BDX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Becton Dickinson & Co. To summarize, we found that Becton Dickinson & Co ranked in the 36th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 27%. The most interesting components of our discounted cash flow analysis for Becton Dickinson & Co ended up being:
The company has produced more trailing twelve month cash flow than 87.45% of its sector Healthcare.
Becton Dickinson & Co's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 22.45% of tickers in our DCF set.
Becton Dickinson & Co's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as BDX, try IQV, ITGR, EDAP, CRL, and NVS.
Becton Dickinson said on Tuesday it is investigating reports from U.S. nursing homes that its rapid coronavirus testing equipment is producing false-positive results. Tests conducted on the company's Veritor Plus system for detecting the virus are reporting multiple false positive results in some cases, Becton said. The inaccurate results were first reported https://www.wsj.com/articles/covid-19-test-maker-examines-false-positive-results-in-nursing-homes-11600121878?mod=searchresults&page=1&pos=6 by the Wall Street Journal.