DHR PE Ratio 2026
Danaher Corp Price to Earnings Analysis
Current P/E Ratio
41.88
Stock Price
$210.64
EPS (TTM)
$5.03
Valuation
Overvalued
PE Ratio Breakdown
Trailing P/E (TTM)
41.88
Based on last 12 months earnings
Health Care Industry Avg
20.00
DHR is 109% above industry
PEG Ratio
335.01
Potentially overvalued
What Does DHR P/E Ratio Mean?
Current Valuation
At a P/E ratio of 41.88, investors are paying $41.88 for every $1 of DHR's annual earnings. This high P/E suggests investors expect strong future earnings growth or that the stock is trading at a premium.
Industry Comparison
Compared to the Health Care industry average P/E of 20, DHR is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
PE Ratio Calculator
How P/E ratio changes with different stock prices:
At $168.51
P/E: 33.50
20% lower
At $189.58
P/E: 37.69
10% lower
At $231.70
P/E: 46.06
10% higher
At $252.77
P/E: 50.25
20% higher
Get Complete DHR Valuation Analysis
DCF model, comparable companies, and AI-powered insights
Frequently Asked Questions
What is DHR PE ratio?
DHR (Danaher Corp) has a price-to-earnings (P/E) ratio of 41.88. This means investors are paying $41.88 for every $1 of DHR's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare DHR's P/E of 41.88 to its industry average and historical range.
Is DHR overvalued based on PE ratio?
DHR's P/E ratio of 41.88 is above the Health Care industry average of approximately 20. This suggests the stock may be trading at a premium, though high P/E ratios can be justified by strong growth prospects.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). DHR's trailing P/E is 41.88. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For DHR, with a current price of $210.64 and EPS of $5.03, the P/E ratio is 41.88. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG (Price/Earnings to Growth) ratio adjusts the P/E ratio for earnings growth. It's calculated as P/E / Earnings Growth Rate. DHR's PEG ratio is approximately 335.01. A PEG below 1.0 suggests the stock may be undervalued relative to its growth rate, while above 2.0 may indicate overvaluation.