I previously looked at BDX in January, just before share price went down in February. I hoped it will go further and I will buy some shares, but in the meantime shares recovered and are at all-time highs. Is there any justification of growth?

First of all business is doing really well with a significant EPS growth.


Which leads to higher guidance for 2016:


Valuation is demanding with P/E = 20 and EV/EBITDA = 13,7, dividend yield 1.5%. Company is traded with premium to the market and I am wondering whether such high premium is justified. Company is high quality but many others are also. On the other hand BDX offers a significant growth, which is not the case in many Dividend Aristocrats.


Summing up, as you know I am looking for cheap high quality companies and BDX fits only one criterion of high quality. I am rising my investable level to $130, which is still far below current market price.


Disclaimer BDX – no position