Is Danaher Corp. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Danaher Corp. has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its high valuation ratios, including a P/E ratio of 40, an EV to EBITDA of 24.40, and a Price to Book Value of 3.30. In comparison, peers such as Abbott Laboratories and Thermo Fisher Scientific have P/E ratios of 18.36 and 30.06, respectively, highlighting the premium at which Danaher is trading.
Furthermore, Danaher has underperformed against the S&P 500 over various time frames, with a year-to-date return of -14.93% compared to the S&P 500's 12.22%, and a one-year return of -28.18% against the index's 17.14%. This underperformance reinforces the notion that Danaher Corp. is currently overvalued in the market.