Bdx Dcf Valuation And Graham Stock Analysis

Jae Jun | Old School Value Author

mail questions or comments to: [email protected] http://www.oldschoolvalue.com

Disclaimer Nothing on Old School Value, related pages, emails, or other communications by the author, either written or oral, are intended to be a recommendation to either buy, hold, or sell any specific security or group of securities. Likewise, nothing herein should be construed as an endorsement of any financial adviser, investment manager, commercial information provider, transaction service, or brokerage firm. The findings from this spreadsheet is merely a start to a means of further research and uncovering a great business and investment. Old School Value holds no responsibility for any investment whatsoever.

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Company Name

ticker

Becton Dickinson & Co

BDX

www.oldschoolvalue.com

8/15/2009

all figures in $Mil

Financial Data

BDX

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

TTM

Income Statement Revenue COGS COGS (%)

$ $

3,418.4 $ 1,711.7 $ 50.1%

3,618.3 $ 1,848.3 $ 51.1%

3,754.3 $ 1,913.3 $ 51.0%

4,033.1 $ 2,083.7 $ 51.7%

4,527.9 $ 2,336.3 $ 51.6%

4,934.8 $ 2,500.4 $ 50.7%

5,414.7 $ 2,662.0 $ 49.2%

5,834.8 $ 2,886.9 $ 49.5%

6,359.7 $ 3,071.9 $ 48.3%

7,155.9 $ 3,492.6 $ 48.8%

7,177.5 3,451.3 48.1%

Gross Profit

$

1,706.7

1,770.0

1,841.0

1,949.4

2,191.7

2,434.4

2,752.7

2,948.0

3,287.8

3,663.4

3,726.2

Gross Profit (%)

$

49.9%

$

48.9%

$

49.0%

$

48.3%

$

48.4%

$

49.3%

$

50.8%

$

50.5%

$

51.7%

$

51.2%

51.9%

Operating Expenses SG&A SG&A (%) R&D R&D (%) Other Other (%) Operating Income

$ $ $

$

Operating Income (%)

931.9 27.3% 254.0 7.4% 75.5 2.2% 445.3

$ $ $

$

13.0%

973.9 $ 26.9% 223.8 $ 6.2% 57.5 1.6% 514.8

$

14.2%

983.3 $ 26.2% 211.8 $ 5.6% NaN $ #VALUE! 645.9

$

17.2%

1,032.0 25.6% 220.2 5.5% 21.5 0.5%

$

675.7

$

$

16.8%

1,207.5 26.7% 235.1 5.2% -NaN #VALUE!

$

749.1

$

$ $

16.5%

1,311.5 $ 26.6% 235.7 $ 4.8% 100.0 $ 2.0% 787.3

$

16.0%

1,449.9 $ 26.8% 271.6 $ 5.0% $ 0.0%

1,537.5 $ 26.4% 360.0 $ 6.2% $ 0.0%

1,602.4 $ 25.2% 482.2 $ 7.6% $ 0.0%

1,715.1 $ 24.0% 396.2 $ 5.5% $ 0.0%

1,728.3 24.1% 404.9 5.6% 0.0%

1,031.2

1,050.5

1,203.2

1,552.1

1,593.1

$

19.0%

$

18.0%

$

18.9%

$

21.7%

22.2%

Other Income and Expense Net Int Inc & Other

$

5.1

$

Earnings Before Taxes Income Taxes

$ $

372.7 96.9

$ $

519.9 127.0

$ $

576.8 138.4

$ $

628.6 148.6

$ $

709.7 162.7

$ $

752.9 170.4

$ $

1,004.9 312.6

$ $

Earnings After Taxes Acctg Changes Disc Operations Ext Items

$ $ $ $

275.7 -

$ $ $ $

392.9 -

$ $ $ $

438.4 $ (36.8) $ $ $

480.0 -

$ $ $ $

547.1 -

$ $ $ $

582.5 $ $ (115.1) $ $

692.3 30.0 -

$ $ $ $

Net Income

$

275.7

$

392.9

480.0

$

547.1

$

467.4

722.3

Net Income (%) Diluted EPS, Cont Ops$ Diluted EPS$ Shares

$ $

(72.6) $

8.1% 1.0 $ 1.0 $ 265

(69.1) $

$

(47.1) $

(39.4) $

$

401.7

10.9% 1.5 1.5 263

$ $

10.7% 1.6 $ 1.5 $ 269

11.9% 1.8 $ 1.8 $ 268

12.1% 2.1 $ 2.1 $ 264

(34.4) $

$

9.5% 2.2 $ 1.8 $ 264

(26.3)

13.3% 2.7 2.8 260

$

(15.5)

$

0.8

$

1.5

$

$ $

1,204.0 347.8

$ $

1,553.6 425.7

$ $

755.6 (3.3) -

$ $ $ $

856.2 33.9 -

$ $ $ $

1,127.9 $ $ (0.9) $ $

1,154.8 (2.2) -

$

752.3

$

890.0

$

1,127.0

1,152.6

$ $

12.9% 3.0 2.9 256

$ $

14.0% 3.4 $ 3.5 $ 255

1,035.0 279.4

15.7% 4.5 4.5 244

$ $ $

(8.7) 1,584.4 429.6

16.1% 4.8 4.8 241

Balance Sheet Assets Cash and Equiv Short-Term Investments Accts Rec Inventory Other Current Assets

$ $ $ $ $

59.9 4.7 812.5 642.5 164.1

$ $ $ $ $

49.2 5.6 751.7 678.7 175.5

$ $ $ $ $

82.1 4.6 768.1 707.7 200.5

$ $ $ $ $

243.1 1.9 746.0 697.7 240.0

$ $ $ $ $

519.9 781.3 795.0 242.3

$ $ $ $ $

719.4 32.1 807.4 738.8 343.7

$ $ $ $ $

1,042.9 86.8 842.8 776.0 226.9

$ $ $ $ $

1,000.3 106.4 885.8 875.7 317.1

$ $ $ $ $

511.5 158.0 1,083.2 1,052.0 325.9

$ $ $ $ $

830.5 199.9 1,079.1 1,080.4 424.8

$ $ $ $ $

542.7 187.5 1,062.1 1,180.7 434.8

Total Current Assets Net PP&E Intangibles Other Long-Term Assets

$ $ $ $

1,683.7 1,431.2 1,034.7 287.4

$ $ $ $

1,660.7 1,576.1 948.1 320.2

$ $ $ $

1,762.9 1,716.0 900.8 422.6

$ $ $ $

1,928.7 1,765.7 1,186.4 159.7

$ $ $ $

2,338.6 1,844.8 1,196.8 192.1

$ $ $ $

2,641.3 1,881.0 1,039.1 191.1

$ $ $ $

2,975.3 1,933.7 966.8 196.2

$ $ $ $

3,185.3 2,133.6 1,090.8 414.9

$ $ $ $

3,130.6 2,497.3 1,234.9 466.6

$ $ $ $

3,614.7 2,744.5 715.4 838.4

$ $ $ $

3,407.8 2,663.1 1,167.2 337.8

Total Assets

$

4,437.0

$

4,505.1

$

4,802.3

$

5,040.5

$

5,572.3

$

5,752.6

$

6,072.0

$

6,824.5

$

7,329.4

$

7,912.9

$

7,575.8

$ $ $ $

184.0 637.7 32.3 499.6

$ $ $ $

205.1 454.0 50.1 555.5

$ $ $ $

224.7 434.6 57.2 535.9

$ $ $ $

221.5 121.9 75.0 625.0

$ $ $ $

206.9 49.3 86.7 692.9

$ $ $ $

252.3 206.5 70.9 769.8

$ $ $ $

243.6 427.2 34.6 870.9

$ $ $ $

267.0 207.6 86.9 917.3

$ $ $ $

260.9 201.3 28.9 519.1

$ $ $ $

405.6 -

NaN

$

$

14.2

NaN

$

$

406.4

$

1,105.1

1,252.5 803.0

$ $

$ $

1,050.1 1,171.5

1,299.4 1,060.8

$ $

$ $

1,416.6 953.2

$ $

1,510.7 747.7

Liabilities & Stockholders' Equity Accts Payable Short-Term Debt Taxes Payable Accrued Liabilities

$ $ $ $

Other Short-Term Liabilities

$

Total Current Liabilities Long-Term Debt

$ $

209.4 631.3 23.4 465.3 1,329.3 954.2

$ $ $

-

NaN

1,353.5 779.6

$ $

1,264.7 783.0

$ $

1,043.4 1,184.0

$ $

-

$

1,576.3 957.0

$ $

1,478.8 955.7

Other Long-Term Liabilities

$

384.8

$

416.0

$

425.8

$

497.1

$

447.9

$

463.1

$

427.8

$

455.0

$

532.9

$

607.6

$

513.5

Total Liabilities

$

2,668.3

$

2,549.1

$

2,473.5

$

2,552.5

$

2,675.3

$

2,684.7

$

2,788.0

$

2,988.3

$

2,967.4

$

2,977.4

$

2,771.8

Total Equity

$

1,768.7

$

1,956.0

$

2,328.8

$

2,488.0

$

2,897.0

$

3,067.9

$

3,284.0

$

3,836.2

$

4,362.0

$

4,935.6

$

4,804.0

Total Liabilities & Equity

$

4,437.0

$

4,505.1

$

4,802.3

$

5,040.5

$

5,572.3

$

5,752.6

$

6,072.0

$

6,824.5

$

7,329.4

$

7,913.0

$

7,575.8

467.4 $ 357.2 $ (31.4) $ 307.0 $

722.3 387.5 63.2 50.9

$ $ $ $

890.0 $ 441.3 $ (115.5) $ 20.2 $

1,127.0 477.4 80.1 3.5

$ $ $ $

1,152.6 479.2 97.3 (201.6)

1,223.9

$

1,688.0

$

1,527.5

Cash Flows Statement Cash Flows From Operating Activities

Net Income Depr & Amort Deferred Taxes Other

$ $ $ $

275.7 $ 258.9 $ 4.6 $ (107.4) $

392.9 288.3 37.3 (102.9)

$ $ $ $

401.7 305.7 37.4 33.9

$ $ $ $

480.0 $ 304.9 $ 57.2 $ (6.0) $

547.1 $ 344.5 $ (1.0) $ 15.2 $

Cash from Operations

$

431.8

615.5

$

778.7

$

836.0

905.7

$

$

$

1,100.3

$

752.3 $ 405.1 $ (129.3) $ 48.3 $ 1,076.4

$

1,236.1

$

Cash Flows From Investing Activities Cap Ex Purchase of Business Other

$ $ $

(311.6) $ (374.2) $ (130.1) $

(376.4) (21.3) (5.8)

$ $ $

(370.8) $ (31.0) $ (140.2) $

(259.7) $ $ (101.4) $

(261.0) $ $ (88.3) $

(265.7) $ (24.3) $ (105.3) $

(317.6) (64.4)

$ $ $

(459.3) (231.5) (95.8)

$ $ $

(556.4) $ (339.5) $ (122.3) $

Cash from Investing

$

(815.9)

(403.4)

$

(541.9) $

(361.1) $

(349.4) $

(395.2) $

(382.0)

$

(786.5)

$

(1,018.3) $

82.9 (100.1) (101.3) (82.6)

$ $ $ $

(185.9) $ (6.6) $ (102.5) $ (18.8) $

(263.4) 396.6 (104.1) (320.8)

$ $ $ $

(273.9) $ (21.7) $ (152.4) $ (56.5) $

(426.5) $ (104.5) $ (182.2) $ 188.8 $

(301.1) (0.8) (212.4) 172.2

$ $ $ $

(319.5) (100.8) (239.8) (66.0)

$

(602.0) $ (41.3) $ (139.8) $

(559.2) (206.2)

(783.0)

$

(765.4)

(364.6) $ $ (278.5) $ 57.3 $

(470.1) (297.8) 16.3

Cash Flows From Financing Activities Net Issuance of Stock Net Issuance of Debt Dividends Other

$ $ $ $

26.8 $ 79.2 $ (88.1) $ 346.8 $

34.7 $ (60.0) $ (95.7) $ (98.5) $

Cash from Financing Currency Adj Change in Cash

$ $ $

364.7 $ (4.0) $ (23.3) $

(219.5) $ (3.3) $ (10.7) $

(201.1) $ (2.7) $ 32.9 $

(313.7) $ (0.2) $ 161.0 $

(291.7) $ 12.1 $ 276.8 $

(504.4) $ 1.6 $ 199.5 $

(524.5) 3.9 323.5

$ $ $

(342.2) $ 9.7 $ (42.6) $

(726.0) $ 15.0 $ (488.8) $

(585.8) 0.8 319.0

$ $ $

(751.6) (26.5) (18.3)

Cash from Operations Cap Ex

$ $

431.8 $ (311.6) $

615.5 $ (376.4) $

778.7 $ (370.8) $

836.0 $ (259.7) $

905.7 $ (261.0) $

1,100.3 $ (265.7) $

1,223.9 $ (317.6) $

1,076.4 $ (459.3) $

1,236.1 $ (556.4) $

1,688.0 $ (602.0) $

1,527.5 (559.2)

Free Cash Flow Book Value Per Share

$ $

223.0 6.67

304.8 7.44

336.6 8.66

525.2 9.28

630.6 10.97

1,002.4 20.23

1,072.6 19.93

$ $ $ $

Free Cash Flow

$ $

$ $

$ $

$ $

$ $

558.9 11.62

$ $

792.2 12.63

$ $

698.1 14.99

$ $

774.9 17.11

$ $

$ $

Company Name

ticker

Becton Dickinson & Co

BDX

8/15/2009

User Growth

User Input Params

www.oldschoolvalue.com

Desired MOS 50%

10.00% Growth 10.0%

Discount % 9.0%

1999

2000

2001

$

Price 66.39 2002

all figures in $Mil

Share Value Buy under Actual D/C % $ 87.38 $ 43.69 24% Financial Data 2003 2004 2005

52Wk High $89.24

52Wk Low $58.14

2006

2007

2008

Income Sheet Data Revenue Gross Profit Operating Income Net Income Diluted EPS

$ $ $ $ $

3,418.4 1,706.7 445.3 275.7 1.0

$ $ $ $ $

3,618.3 1,770.0 514.8 392.9 1.5

$ $ $ $ $

3,754.3 1,841.0 645.9 401.7 1.5

$ $ $ $ $

4,033.1 1,949.4 675.7 480.0 1.8

$ $ $ $ $

4,527.9 2,191.7 749.1 547.1 2.1

$ $ $ $ $

4,934.8 2,434.4 787.3 467.4 1.8

$ $ $ $ $

5,414.7 2,752.7 1,031.2 722.3 2.8

$ $ $ $ $

5,834.8 2,948.0 1,050.5 752.3 2.9

$ $ $ $ $

6,359.7 3,287.8 1,203.2 890.0 3.5

$ $ $ $ $

7,155.9 3,663.4 1,552.1 1,127.0 4.5

$ $

431.8 223.0

$ $

615.5 304.8

$ $

778.7 336.6

$ $

836.0 525.2

$ $

905.7 630.6

$ $

1,100.3 558.9

$ $

1,223.9 792.2

$ $

1,076.4 698.1

$ $

1,236.1 774.9

$ $

1,688.0 1,002.4

$ $ $ $

1,683.7 1,329.3 2,668.3 734.0

$ $ $ $

1,660.7 1,353.5 2,549.1 1,007.9

$ $ $ $

1,762.9 1,264.7 2,473.5 1,428.0

$ $ $ $

1,928.7 1,252.5 2,552.5 1,301.6

$ $ $ $

2,338.6 1,043.4 2,675.3 1,700.2

$ $ $ $

2,641.3 1,050.1 2,684.7 2,028.8

$ $ $ $

2,975.3 1,299.4 2,788.0 2,317.2

$ $ $ $

3,185.3 1,576.3 2,988.3 2,745.4

$ $ $ $

3,130.6 1,478.8 2,967.4 3,127.1

$ $ $ $

3,614.7 1,416.6 2,977.4 4,220.2

Cash Flow Data Cash from Operations Free Cash Flow

Balance Sheet Data Current Assets Current Liabilities Total Liabilities Tangible Shareholder Equity

Margins Gross Margin Operating Margin Net Margin Current Assets>1.5 times

49.93% 13.03% 8.07% 1.3

48.92% 14.23% 10.86% 1.2

49.04% 17.20% 10.70% 1.4

48.34% 16.75% 11.90% 1.5

48.40% 16.54% 12.08% 2.2

49.33% 15.95% 9.47% 2.5

50.84% 19.04% 13.34% 2.3

50.52% 18.00% 12.89% 2.0

51.70% 18.92% 13.99% 2.1

51.19% 21.69% 15.75% 2.6

10.76% 6.5% 2.7 6.66% 16.78%

13.83% 8.4% 2.7 8.79% 21.62%

12.77% 9.0% 2.7 8.63% 19.12%

20.19% 13.0% 3.0 9.75% 20.26%

18.93% 13.9% 2.9 10.31% 20.59%

15.26% 11.3% 3.4 8.25% 15.85%

20.82% 14.6% 3.4 12.22% 22.85%

16.79% 12.0% 3.3 11.67% 21.13%

16.79% 12.2% 2.9 12.58% 21.71%

17.34% 14.0% 3.2 14.79% 24.24%

150.9% 35.0% 8.4%

130.3% 28.5% 12.0%

106.2% 25.2% 13.6%

102.6% 24.4% 20.6%

92.3% 29.0% 23.6%

87.5% 27.6% 20.8%

84.9% 24.4% 28.4%

77.9% 20.0% 23.4%

68.0% 18.0% 26.1%

60.3% 16.2% 33.7%

2003-2007 16.5% 5.3% 16.8% 12.2% 11.7% 21.1% 8.9% 50.5% 18.0% 12.9% 13.9% 8.1%

2004-2008 20.1% 15.7% 16.8% 12.2% 12.2% 21.7% 9.7% 50.8% 18.9% 13.3% 26.0% 11.3%

2003-2006 17.3% 3.4% 17.9% 12.9% 11.0% 20.9% 8.8% 49.9% 17.3% 12.5% 12.3% 5.9%

2003-2005 16.7% 12.1% 18.9% 13.9% 10.3% 20.6% 9.4% 49.3% 16.5% 12.1% 15.7% 16.2%

2004-2006 16.3% 11.8% 16.8% 12.0% 11.7% 21.1% 8.7% 50.5% 18.0% 12.9% 28.7% -1.1%

2005-2007 16.2% -1.1% 16.8% 12.2% 12.2% 21.7% 8.4% 50.8% 18.9% 13.3% 12.2% 0.5%

2006-2008 24.0% 19.8% 16.8% 12.2% 12.6% 21.7% 10.7% 51.2% 18.9% 14.0% 23.4% 25.2%

Median

2015 $1,832.43 2025 $ 2,686.33

2016 $1,869.16 2026 $ 2,766.91

2017 $2,020.56 2027 $ 2,849.92

2018 $2,184.23 2028 $ 2,935.42

Efficiency & Profitability CROIC FCF/Sales Inventory Turnover Return On Assets (ROA) Retun On Equity (ROE)

Debt Related Debt to Equity Capitalization Ratio FCF to Debt

Multi-Year Performance Shareholder Equity Free Cash Flow CROIC FCF/Sales ROA ROE Revenue Growth Gross Margin Operating Margin Net Margin Earnings Growth Cash from Ops Growth

2004-2007 15.5% 11.5% 16.8% 12.1% 11.9% 21.4% 8.8% 50.7% 18.5% 13.1% 25.4% 4.0%

2005-2008 22.1% 8.2% 17.1% 13.1% 12.4% 22.3% 9.7% 51.0% 19.0% 13.7% 17.2% 11.3%

16.7% 11.5% 16.8% 12.2% 11.9% 21.4% 8.9% 50.7% 18.5% 13.1% 17.2% 8.1%

Projection of future Free Cash Flow Growing at 10% Growing at 3% (Default)

$ $

2009 1,103 2019 2,249.75

$ $

2010 1,213 2020 2,317.25

$ $

2011 1,334 2021 2,386.77

2012 $1,414.97 2022 $ 2,458.37

Company Valuation Total Value Shares Outstanding Per Share Value Margin of Safety Purchase Price Current Price Actual Discount Enterprise Value Enterprise Value/EBITDA

$ $ $ $ $

2013 $1,542.32 2023 $ 2,532.12

2014 $1,681.13 2024 $ 2,608.08

Free Cash Flow and Tangible Shareholder Equity Trend 20,931 239.53 87.38 50% 43.69 66.39 24% 16,330.00 7.844

$4,500.0 $4,000.0 $3,500.0 $3,000.0 $2,500.0 $2,000.0 $1,500.0 $1,000.0 $500.0 $-

$4,220.2

FCF

$3,127.1

Shareholder Equity

$734.0 $223.0

1999

$1,007.9

$2,745.4

$1,428.0 $1,301.6

$304.8

$336.6

2000

2001

$1,700.2

$2,028.8

$525.2

$630.6

$558.9

2002

2003

2004

$2,317.2

$792.2

$698.1

$774.9

2005

2006

2007

$1,002.4

2008

Multi-Year Performance Graph 160.0%

Gross Margin

Operating Margin

Net Margin

Earnings Growth

ROA

ROE

140.0% 21.7%

120.0%

21.1%

21.4%

21.7%

22.3% 21.1%

12.2%

11.7%

20.6%

11.9%

20.9%

21.7%

12.6%

12.4% 100.0%

11.7%

11.0%

26.0%

13.9% 80.0%

60.0%

12.9%

13.3%

14.0%

16.5%

18.0%

18.9%

18.9%

51.0%

49.3%

50.5%

50.8%

51.2%

2005-2008

2003-2005

2004-2006

2005-2007

2006-2008

13.1%

13.7%

18.9%

17.3%

18.5%

19.0%

50.5%

50.8%

49.9%

50.7%

2003-2007

2004-2008

2003-2006

2004-2007

18.0%

12.2%

15.7%

12.5%

13.3%

23.4%

28.7%

17.2%

12.3%

12.9%

12.2%

10.3%

25.4%

12.1%

40.0%

20.0%

0.0%

Margin Percentages 60.00% 49.93%

49.04%

48.92%

49.33%

48.40%

48.34%

50.00%

50.84%

51.70%

50.52%

51.19%

Gross Margin

40.00%

Operating Margin Net Margin

30.00%

20.00% 10.00%

13.03% 8.07%

14.23% 10.86%

1999

2000

17.20%

16.75% 11.90%

16.54% 12.08%

15.95%

10.70%

2001

2002

2003

2004

19.04%

18.00%

13.34%

12.89%

18.92% 13.99%

2005

2006

2007

21.69% 15.75%

9.47%

0.00%

Efficiency & Profitability 30.00%

CROIC

FCF/Sales

2008

Debt

ROA

160.0%

ROE

Debt to Equity

Capitalization Ratio

FCF to Debt

140.0%

25.00%

120.0% 20.00% 100.0% 15.00%

80.0% 60.0%

10.00%

40.0% 5.00%

20.0%

0.00%

0.0%

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Sales, Receivables, Inventory $8,000.0

Sales

Accts Receivable

Inventory

$7,000.0 $6,000.0 $5,000.0 $4,000.0 $3,000.0

$2,000.0 $1,000.0 $1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

TTM

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Company Name

ticker

Becton Dickinson & Co

BDX

www.oldschoolvalue.com

8/15/2009

all figures in $Mil

Desired MOS

Growth

50%

10.0%

Discount % 9%

Price $

66.39

Share Value $

87.38

Buy under $

43.69

Actual D/C % 52Wk High 24%

$

89.24

52Wk Low $

58.14

Historical Stock Price Vs Intrinsic Value Per Share 100 Historical Price

Intrinsic Value

Buy Price

Linear (Historical Price)

90

80

70

60

50

40

30

20

10

0 12/2/2002

6/2/2003

12/2/2003

6/2/2004

12/2/2004

6/2/2005

12/2/2005

6/2/2006

12/2/2006

6/2/2007

12/2/2007

6/2/2008

12/2/2008

6/2/2009

Company Name

ticker

Becton Dickinson & Co 8/15/2009

BDX User Growth

all figures in $Mil

10.00% User Input Params

Desired MOS

Growth

66%

10.0%

1999 1.04 2009 $ 4.20 $

Diluted EPS

Earnings Growth EPS Weighted Average

2000 1.49 2010 $ 4.95 $

www.oldschoolvalue.com Price $

Actual DC%

66.39

2001 1.49 2011 $ 5.24 $

Share Value

40%

$

2002 1.79 2012 $ 5.78 $

111.27

Buy under $

37.83

Earnings 2003 $ 2.07 $

2004 1.77

P/B Ratio

$

Net Net Working Capital

3.28

$

2005 2.77

$

(2.73) 2006 2.93

$

2007 3.49

Multi-Year Performance 2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008 13.9% 26.0% 12.3% 25.4% 17.2% 15.7% 28.7% 12.2% 23.4% $ 2.61 $ 3.08 $ 2.39 $ 2.74 $ 3.41 $ 2.20 $ 2.49 $ 3.06 $ 3.63

Company Stats Normal Earnings Expected 5 Year Growth 10 yr AA Corp Bond Rate Book Value Per Share Price to Book Ratio Enterprise Value Per Share

$

$

4.33 10.00% 5.12 20.23 3.28 74.37

Per Share Value

$

Desired MOS Purchase Price Current Price Actual Discount

$ $

111.27 66.00% 37.83 66.39 40%

2008 4.46

Median 17.2% $2.7

$6.00 EPS

$4.95

Linear (EPS)

$5.00

$4.46

$4.00

$4.20

$3.49

$3.00 $2.00

Company Valuation

$

$1.49

$1.49

2000

2001

$1.79

$2.07

$2.77

$2.93

2005

2006

$1.77

$1.04 $1.00 $1999

2002

2003

2004

2007

2008

2009

2010

Company Name

ticker

Becton Dickinson & Co

BDX

8/15/2009

www.oldschoolvalue.com Stock Price Market Cap (millions) 52-Week High 52-Week Low % off 52-Week Low

BDX 66.39 15,890 89.24 58.14 14.2%

ACL 127.31 38,030 178.56 66.64 91.0%

BAX 55.23 33,290 71.53 45.46 21.5%

BCR 73.62 7,190 101.61 68.94 6.8%

HSIC 51.39 4,630 $60.42 32.08 60.2%

PDCO

Industry

Ranking

25.26 3,110 $33.70 15.75 60.4%

NA NA NA NA NA

NA NA NA NA NA

13.86 2.25 3.05 3.95 9.56 27.88 2.28 7.844

18.39 6.14 7.96 9.37 16.65 21.95 5.86 15.005

16.07 2.72 5.08 7.77 12.15 36.38 2.89 10.511

15.43 2.91 3.44 5.77 12.44 15.89 2.72 8.285

17.86 0.73 2.21 4.92 12.88 17.18 0.74 8.624

14.97 1.01 2.6 14.27 13.54 33.97 1.12 9.23

1.66 0.24 2.62 3.9 1.29 41.3 NA NA

6 4 4 6 6 3 NA NA

2.01 1.28 23.3 25.83

2.83 1.35 48.17 0

1.89 1.47 9.42 28.49

0.93 0.73 6.96 13.31

NA 0 0 0

NA 0 0 0

0.08 0.89 13.32 1.29

2 3 2 2

-1.57 2.25 9.65 17.2 11.4 16 14.99

-3.35 6.14 13.06 3.22 16.79 28.78 15.1

-2.07 2.72 6.76 12.49 19.86 14.03 3.79

1.22 2.91 11.34 47.14 36.9 20.47 -9.81

-1.82 0.73 14.89 14.91 3.47 12.39 5.47

0.19 1.01 9.46 -11.17 -0.84 9.23 10.49

0.37 0.24 6.55 59.22 0 11.44 10.43

3 4 4 2 4 3 2

1.99 2.73 28.46 36.25

2.12 2.43 1.19 19.69

1.35 2.08 54.84 58.49

4.25 5.43 7.17 7.17

1.28 1.98 12.46 19.91

2 2.8 44.62 46.47

1.83 2.44 15.84 31.07

4 3 3 3

52.43 50.98 29.38 26.02 22.64 19.44 22.47 19.22 16.77 13.86

76.92 75.09 38.97 36.37 35.74 31.71 33.82 31.74 33.67 27.06

51.1 45.73 27.12 21.75 22.27 16.51 21.31 15.34 17.56 12.11

61.74 61 30.25 26.82 26.26 23.76 26.26 23.76 19.67 17.7

29.46 28.86 8.1 7.29 6.85 6.09 6.58 5.86 4.43 3.81

33.72 34.61 12.17 12.92 11.19 11.96 10.33 11.61 6.45 7.29

5.54 45.81 0 20.16 1.6 14.78 1.48 14.61 1.15 9.47

3 3 3 3 3 3 3 3

13.97 12.45 17.11 15.62 23.07 22.15

27.83 24.2 41.23 40.4 48.25 47.86

13.76 9.05 17.75 12.45 31.14 24.85

18.34 15.89 20.51 19.3 24.26 22.39

7.89 7.06 11.19 10.04 13.06 13.23

9.48 10.71 11.71 13.35 18.22 18.01

1.05 7.31 1.57 9.74 2.5 11.29

3 3 4 3 4 4

250187 41947 6.1 2.86 0.83

402104 135370 4.74 2.32 0.83

252144 44289 5.62 2.36 0.78

224727 44200 6.06 3.2 0.93

506549 22446 8.66 6.24 1.78

441402 28479 7.37 7.44 1.47

386369 35485 0.59 0.3 0.09

NA NA NA NA 4

Valuation Ratios P/E Ratio (TTM) Price to Sales (TTM) Price to Book (MRQ) Price to Tangible Book (MRQ) Price to Cash Flow (TTM) Price to Free Cash Flow (TTM) Enterprise Value/Revenue (TTM) Enterprise Value/EBITDA (TTM)

Dividends Dividend Yield Dividend Yield - 5 Year Avg. Dividend 5 Year Growth Rate Payout Ratio (TTM)

Growth Rates Sales (MRQ) vs Qtr. 1 Yr. Ago Sales (TTM) vs TTM 1 Yr. Ago Sales - 5 Yr. Growth Rate EPS (MRQ) vs Qtr. 1 Yr. Ago EPS (TTM) vs TTM 1 Yr. Ago EPS - 5 Yr. Growth Rate Capital Spending - 5 Yr. Growth Rate

Financial Strength Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt to Equity (MRQ) Total Debt to Equity (MRQ)

Profitability Gross Margin (TTM) Gross Margin - 5 Yr. Avg. EBITD Margin (TTM) EBITD - 5 Yr. Avg. Operating Margin (TTM) Operating Margin - 5 Yr. Avg. Pre-Tax Margin (TTM) Pre-Tax Margin - 5 Yr. Avg. Net Profit Margin (TTM) Net Profit Margin - 5 Yr. Avg.

4 3

Management Effectiveness Return Return Return Return Return Return

On On On On On On

Assets (TTM) Assets - 5 Yr. Avg. Investment (TTM) Investment - 5 Yr Avg Equity (TTM) Equity - 5 Yr. Avg.

Efficiency Revenue/Employee (TTM) Net Income/Employee (TTM) Receivable Turnover (TTM) Inventory Turnover (TTM) Asset Turnover (TTM)

Company Name

ticker

Becton Dickinson & Co

BDX

8/15/2009

www.oldschoolvalue.com

Net Profit Margin 16.8%

15.7%

Cash Flow (Continuing Operations) 14.0%

1503.2 12.9%

13.3%

12.1%

11.9%

9.5%

TTM 2008/09 16.8% 15.7% % Change 12.5%

1269.9 10.7%

1073.1

10.9%

2006/09 12.9%

2005/09 13.3%

2004/09 9.5%

2003/09 12.1%

2002/09 11.9%

2001/09 10.7%

2000/09 10.9%

1999/09 8.1%

8.5%

-3.3%

40.8%

-21.6%

1.5%

11.2%

-1.5%

34.6%

--

47.3%

49.8%

52.8%

52.8%

52.1%

46.2%

Magic Formula Investing -- Return on Capital 53.8%

55.8% 44.9%

46.3%

1223.9

1100.3 905.7

8.1%

2007/09 14.0%

46.1%

1687.1

TTM 2007/12 1503.2 1687.1 % Change 32.9%

836.0

778.6

615.5

431.8

2006/12 1269.9

2005/12 1073.1

2004/12 1223.9

2003/12 1100.3

2002/12 905.7

2001/12 836.0

2000/12 778.6

1999/12 615.5

1998/12 431.8

18.3%

-12.3%

11.2%

21.5%

8.3%

7.4%

26.5%

42.5%

--

11.9%

12.2%

Magic Formula Investing -- Earnings Yield 13.0%

12.3% 9.0%

8.6%

2006/12 9.0%

2005/12 8.6%

2004/12 #VALUE!

2003/12 9.0%

2002/12 11.9%

4.6%

#VALUE!

#VALUE!

-24.6%

-2.7%

10.8%

10.2%

10.2%

2001/12 12.2%

2000/12 10.8%

1999/12 10.2%

1998/12 10.2%

12.8%

6.3%

-0.2%

--

9.0%

0.0% Now 2007/12 46.1% 53.8% -3.6% % Change

2006/12 55.8%

2005/12 44.9%

2004/12 46.3%

2003/12 47.3%

2002/12 46.2%

2001/12 49.8%

2000/12 52.8%

1999/12 52.8%

1998/12 52.1%

24.2%

-3.0%

-2.0%

2.2%

-7.2%

-5.6%

0.0%

1.2%

--

Return on Assets (ROA) 13.5%

14.2%

12.1%

Now 2007/12 13.0% 12.3% % Change 36.4%

Return on Equity (ROE) 11.0%

23.0%

11.9% 9.8%

9.5%

8.1%

9.1%

22.8%

20.4%

19.6%

22.0%

19.1%

19.6%

19.2%

20.5% 16.0%

15.4%

8.7%

6.2%

2009/06 2007/12 13.5% 14.2% % Change 17.4%

2006/12 12.1%

2005/12 11.0%

2004/12 11.9%

2003/12 8.1%

2002/12 9.8%

2001/12 9.5%

2000/12 9.1%

1999/12 8.7%

1998/12 6.2%

10.0%

-7.6%

46.9%

-17.3%

3.2%

4.4%

4.6%

40.3%

--

Current Ratio 2.7

2006/12 20.4%

2005/12 19.6%

2004/12 22.0%

2003/12 15.4%

2002/12 19.1%

2001/12 19.6%

2000/12 19.2%

1999/12 20.5%

1998/12 16.0%

4.1%

-10.9%

42.9%

-19.4%

-2.6%

2.1%

-6.3%

28.1%

--

1.4

1.5

Quick Ratio

2.6 2.1

2.0

2.3

2.5

2.0 2.2 1.5

2009/06 2007/12 2.7 2.6 % Change 20.5%

2009/06 2007/12 23.0% 22.8% % Change 11.8%

1.4

1.2

1.3

2006/12 2.1

2005/12 2.0

2004/12 2.3

2003/12 2.5

2002/12 2.2

2001/12 1.5

2000/12 1.4

1999/12 1.2

1998/12 1.3

4.8%

-11.7%

-9.0%

12.2%

45.6%

10.5%

13.6%

-3.1%

--

1.8

1.7

1.8 1.5 1.0

2009/06 2007/12 2.0 1.8 % Change 27.3%

0.8

0.7

0.8

2006/12 1.4

2005/12 1.5

2004/12 1.7

2003/12 1.8

2002/12 1.5

2001/12 1.0

2000/12 0.8

1999/12 0.7

1998/12 0.8

-4.1%

-13.4%

-6.6%

22.5%

50.5%

17.8%

15.0%

-7.4%

--