On July 28, 2026, Becton Dickinson & Co BDX shares rose 4.7% to $166.34, continuing its upward trend amid a strong performance over the past year, where the stock has increased by 18.8%. The shares have traded between a 52-week high of $187.35 and a low of $127.62.
- GF Valueâ„¢ verdict: Currently priced at $166.34, which is 11.6% below the estimated fair value of $188.07.
- GF Scoreâ„¢ of 79/100 indicates that the company is performing above average compared to its peers.
- Most notable signal: The momentum rank of 10/10 highlights strong recent performance.
Is BDX Overvalued or Undervalued?
According to the GF Valueâ„¢, which represents GuruFocus' proprietary estimate of intrinsic value based on historical trading multiples, past business growth, and future performance estimates, Becton Dickinson & Co BDX is currently valued at $188.07. With its current price at $166.34, the stock is considered 11.6% undervalued. This suggests a potential opportunity for investors, as there is a margin of safety of approximately $21.73 per share. The GF Valuation label indicates that the stock is modestly undervalued, which is a favorable condition for long-term investors, provided that the fundamentals remain stable.
However, investors should exercise caution given the overall economic conditions and any upcoming changes that could impact the company's performance. While the current valuation appears attractive, the risks associated with market volatility should not be overlooked.
How Does BDX's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 42.1x | 33.8x |
| Forward P/E | 12.4x | N/A |
Currently, BDX's P/E (TTM) of 42.1x is significantly above its 5-year median of 33.8x, indicating that the stock is trading at a premium compared to its historical valuation. The forward P/E of 12.4x suggests a different perspective on future earnings potential. This P/E analysis somewhat conflicts with the GF Valueâ„¢ verdict, which indicates that while the stock may be undervalued, it is also trading at higher-than-usual multiples, suggesting that the market may be pricing in stronger future growth expectations.
What Does BDX's GF Scoreâ„¢ Tell Us?
The GF Scoreâ„¢ assesses a stock's financial strength, profitability, growth potential, valuation, and momentum, providing a comprehensive view of its overall performance. BDX's score of 79/100 indicates strong performance, with notable strengths in its valuation and momentum ranks.
| Metric | Rating |
|---|---|
| GF Scoreâ„¢ | 79/100 |
| Financial Strength | 5/10 |
| Profitability | 8/10 |
| Growth | 4/10 |
| Valuation | 10/10 |
| Momentum | 10/10 |
BDX's strongest sub-ranks are in valuation and momentum, both rated 10/10, suggesting that the stock is currently priced attractively and has performed well recently. In contrast, its growth rank of 4/10 indicates that the company may face challenges in expanding at a rapid pace, which could be a concern for long-term investors.
What Are Gurus and Insiders Doing with BDX?
Currently, 18 gurus hold shares of BDX, with 10 adding to their positions and 6 trimming their stakes in recent quarters. This activity indicates a generally positive sentiment among institutional investors, as a majority are increasing their holdings in the stock. This guru ownership signal is a significant differentiator for GuruFocus, as it provides insights that other platforms may not offer.
In the last three months, insiders sold $0.8 million worth of shares without any buying activity. This could suggest that insiders may not see short-term upside for the stock, or it could simply be a strategy for diversification or personal financial needs. Regardless, the lack of insider buying raises some caution regarding future expectations.
What This Means for Investors
Based on the GF Valueâ„¢ analysis, Becton Dickinson & Co BDX appears to be undervalued, with a current price of $166.34 being 11.6% below the estimated fair value of $188.07. Although the stock's valuation multiples suggest a premium compared to historical levels, the overall GF Scoreâ„¢ reflects strong performance metrics. Potential investors may find BDX's dividend sustainability and growth prospects appealing, but should remain aware of the mixed signals in insider activity and market conditions. For more detailed information, visit the Becton Dickinson & Co (BDX) stock page, along with the GF Valueâ„¢ page for insights into the stock's valuation.
Frequently Asked Questions
What is BDX's GF Scoreâ„¢?
BDX's GF Scoreâ„¢ is 79/100, indicating that the company is performing above average compared to its peers in key financial metrics.
Is BDX overvalued or undervalued?
BDX is currently undervalued, with a GF Valueâ„¢ estimate of $188.07, representing an 11.6% upside from its current price.
What is BDX's P/E ratio?
BDX's P/E (TTM) ratio is 42.1x, which is significantly higher than its 5-year median of 33.8x, suggesting that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
