Is Danaher Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Danaher Corp. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued, with a P/E ratio of 40, a Price to Book Value of 3.30, and an EV to EBIT of 35.55, all of which are substantially higher than many of its peers. For instance, Abbott Laboratories has a P/E of 18.36, while Thermo Fisher Scientific has a P/E of 30.06, both suggesting that Danaher is trading at a premium compared to these companies.
The recent stock performance further underscores this valuation concern, as Danaher has underperformed against the S&P 500 over multiple periods, including a year-to-date return of -8.93% compared to the S&P 500's 13.30%. This trend continues with a 1-year return of -23.13% against the S&P 500's 14.08%, and a staggering 10-year return of -8.09% compared to 227.77% for the index. Overall, Danaher Corp.'s high valuation ratios and poor relative performance suggest that it is overvalued in the current market environment.