Danaher Corp (NYSE:DHR)
CAPS Rating:
The Company designs, manufactures and markets professional, medical, industrial and consumer products, its business consists of four segments: Professional Instrumentation, Medical Technologies, Industrial Technologies and Tools & Components.
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The stock is currently undervalued on a future P/E perspective. DHR produces very consistent earnings and usually trades at a conservative 21x PE ratio. It is trading at 23.21x current earnings ratio on the expectation of a large Q1 2010 number.
Fair present value is:
2010 fair value of DHR:
P/E valuation: (21*4.13) = $86.73
2011 fair value of DHR:
P/E valuation: (21*4.72) = $99.12
Please see the Practice Due Diligence blog article for DHR for further research:
http://msncaps.fool.com/Blogs/ViewPost.aspx?bpid=374608&t=02003600157789065646
DHR is my highest conviction pick for the long term. DHR presents an opportunity to outperform the broad market at a very low risk for the foreseeable future.
Disclosure:
RL- Long Position in DHR is 18.6% of Total Portfolio
I added 30% to my position @ $82.50; I didn't catch the bottom of the dip but that is ok. I have a sell order in at $91.50 22x 2010 earnings.