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 concern regarding its current valuation. The company is overvalued based on its key metrics, which include a P/E ratio of 40, a Price to Book Value of 3.30, and an EV to EBITDA of 24.40. In comparison, Abbott Laboratories, which is considered fairly valued, has a P/E ratio of 18.36, while Thermo Fisher Scientific, also fairly valued, has a P/E ratio of 30.06.
The stock has underperformed against the S&P 500, with a year-to-date return of -8.93% compared to the S&P 500's 13.30%, and a one-year return of -23.13% versus the S&P 500's 14.08%. This trend reinforces the notion that Danaher Corp. is not only overvalued but also struggling to deliver returns relative to the broader market.