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

Becton Dickinson (BDX) has quietly outperformed the broader healthcare space over the past 3 months, even as its share price is still down year to date, which creates an interesting setup for long term investors.

See our latest analysis for Becton Dickinson.

With the share price now around $195.59, Becton Dickinson’s 90 day share price return of 4.85% contrasts with a weak year to date share price return of minus 13.64%. Its five year total shareholder return of minus 12.32% shows that momentum is only just starting to rebuild after a long, grinding reset in expectations.

If this kind of slow turning momentum appeals to you, it is also worth exploring other quality names in the space via healthcare stocks to see what else is setting up for a similar move.

Yet with earnings still growing, a modest discount to analyst targets, and a far steeper implied discount to intrinsic value, investors face a key question: Is Becton Dickinson a mispriced compounder or already priced for its next leg of growth?

Most Popular Narrative Narrative: 3.4% Undervalued

Compared to Becton Dickinson’s last close of $195.59, the most followed narrative points to a modestly higher fair value anchored in long term fundamentals.

The fair value estimate has risen slightly to about 202.58 dollars per share from roughly 201.49 dollars, reflecting marginally stronger long term fundamentals. The future P/E has declined modestly to roughly 25.98 times from about 26.29 times, implying a small contraction in the valuation multiple applied to forward earnings.

Read the complete narrative.

Curious how slow revenue growth, rising margins, and a lower future earnings multiple can still support a higher fair value? Explore the full playbook behind this reset.

Result: Fair Value of $202.58 (UNDERVALUED)

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

However, persistent trade headwinds and execution risks around the 2026 business separation could derail margin expansion and dampen confidence in the reset growth story.

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

Another Angle on Valuation

On simple earnings comparisons, Becton Dickinson does not look like a bargain, trading at about 33.2 times earnings versus a fair ratio of 32.8 times and an industry average of 29.7 times. That gap hints at limited margin of safety. What, then, is the market paying up for in this case?

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

Build Your Own Becton Dickinson Narrative

If you see the story differently or want to stress test the assumptions with your own inputs, you can build a fresh narrative in 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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