Becton, Dickinson & Co.Covering Analyst: Kristina Logvinenkoklogvine@uoregon.edu

Becton, Dickinson & Co.

Medical devices Instrument systems Reagents

Revenue Segments

BD Medical BD Diagnostics BD Biosciences

Geographic Exposure

United States Europe Asia Pacific Latin America

Acquisitions

KIESTRA Lab Lab automation solutions

Sirigen Group Molecular Diagnostics

Surgical And Medical Instrument Sector

Demand Drivers: Demographics Medical discoveries

Mature & Emerging markets

Downside Catalysts

Reduced research funding Growth in the U.S. & European markets Medical device tax

Upside Catalysts

Innovative product launches Increase in earnings per share Intensive share buyback

Comparable Analysis

Multiple Implied Price WeightEV/Revenue $89.78 15.00%EV/Gross Profit $84.57 15.00%EV/EBIT $76.70 25.00%EV/EBITDA $82.66 25.00%EV/(EBITDA-Capex) $51.74 0.00%Market Cap/Net Income = P/E $71.47 20.00%Price Target $80.29Current Price 77.76Undervalued 3.25%

DCF Analysis

Implied Price 117.72Current Price 77.76Undervalued 51.39%

Recommendation: Hold

Forward Comparable Analysis 50% $80.29DCF Analysis 50% $117.72Current Price $77.76Implied Price $99.00Undervalued 21.46%

Final Implied Price

Questions

Recommendation: Hold

Diversified product portfolio Strategic acquisitions Growth in emerging markets