BDX Becton Dickinson
too hard · 50
Owner-earnings value$173.61
Price$193.76
Margin of safety
-10.4%
Quality gate · 50/100
⚠ sub-hurdle returns (median roic 5% < 9%) · over-levered (net debt/EBITDA 4.2x > 4x)
Median ROIC4.8%
Gross margin46.4%
Net debt / EBITDA4.2x
FCF conversion143%
Share count / yr+0.2%
Profitable years4/4
Moat & management
Owner-earnings inputs
| Owner earnings (TTM) | 2.53B |
| Owner-earnings yield | 4.8% |
| Free-cash-flow yield | 4.8% |
| Growth used (normalized) | 5.0% |
| Market-implied growth (reverse DCF) | 7.6% |
| Terminal growth | 3.0% |
| Discount rate (hurdle) | 9.0% |
Projected owner earnings
| Yr | Owner earnings | Growth | PV |
|---|---|---|---|
| 1 | 2.66B | 5.0% | 2.44B |
| 2 | 2.79B | 4.8% | 2.35B |
| 3 | 2.91B | 4.6% | 2.25B |
| 4 | 3.04B | 4.3% | 2.15B |
| 5 | 3.17B | 4.1% | 2.06B |
| 6 | 3.29B | 3.9% | 1.96B |
| 7 | 3.41B | 3.7% | 1.86B |
| 8 | 3.53B | 3.4% | 1.77B |
| 9 | 3.64B | 3.2% | 1.68B |
| 10 | 3.75B | 3.0% | 1.58B |
⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~8%/yr owner-earnings growth over 10y (reverse DCF); model credits 5%.