Becton Dickinson (BDX): Revisiting Valuation After a Recent Share Price Rebound

Becton Dickinson (BDX) has quietly climbed about 10% over the past month after a choppy year, and that move is forcing investors to reassess whether the medical devices giant is still trading at a discount.

See our latest analysis for Becton Dickinson.

That near 10% 1 month share price return has only partly clawed back a tougher stretch, with the year to date share price return still negative and longer term total shareholder returns lagging. This suggests sentiment is stabilising rather than roaring back.

If Becton Dickinson’s recent rebound has you reassessing healthcare exposure, it may be worth scanning other opportunities across healthcare stocks to see what else lines up with your strategy.

That leaves investors wrestling with a key question: Is Becton Dickinson still trading at a meaningful discount to its fundamentals, or have recent gains already baked in the company’s next leg of growth?

Most Popular Narrative Narrative: 4% Undervalued

With Becton Dickinson closing at $193.96 against a narrative fair value near $201, the current setup hinges on how investors view its next growth phase.

The pending separation of the Biosciences and Diagnostic Solutions business will transform BD into a pure play medical technology leader with a consumables heavy portfolio (>90% of revenue). This is expected to enable higher cash flow predictability and margin improvement, while anticipated aggressive share buybacks directly support EPS growth.

Read the complete narrative.

Curious how modest revenue assumptions, expanding margins and a future earnings multiple knit together into this valuation story? The cash flow math may surprise you.

Result: Fair Value of $201.49 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent tariff headwinds and execution risk around the 2026 separation could undermine margin expansion and delay the earnings growth implied in this narrative.

Find out about the key risks to this Becton Dickinson narrative.

Another Lens on Valuation

While the narrative fair value suggests a modest discount, earnings based valuation paints a more demanding picture. Becton Dickinson trades at about 33 times earnings, above the US Medical Equipment industry near 28.9 times and slightly above its 32.7 times fair ratio. This leaves less room for disappointment.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Becton Dickinson Narrative

If this view does not quite match your own or you would rather dig into the numbers yourself, you can craft a personalised thesis in just a few minutes, Do it your way.

A great starting point for your Becton Dickinson research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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