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DHR – Market expectations are for Uniform ROA to reach new peaks, but management may be concerned about their revenue, Cytiva, and investments

September 21, 2020

  • Danaher Corporation (DHR:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 35.8x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may be concerned about their revenue growth, Cytiva, and investments

  • Specifically, management may lack confidence in their ability to tackle the challenges of the pandemic, maintain the core revenue of the water quality platform, and grow the revenue of Cytiva. Moreover, they may be concerned about the value of investment in Cytiva, and may lack confidence in their ability to continue investing in growth across their business