Author

Jae Jun | Old School Valuemail questions or comments to: jjun0366@gmail.com

http://www.oldschoolvalue.com

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DisclaimerNothing 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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incorrect values

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I have written which is solved the same way. The solutions in the manual has been able to help everyone with a problem thus far.

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Becton Dickinson & Co www.oldschoolvalue.com

8/15/2009

BDX 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM

Revenue 3,418.4$ 3,618.3$ 3,754.3$ 4,033.1$ 4,527.9$ 4,934.8$ 5,414.7$ 5,834.8$ 6,359.7$ 7,155.9$ 7,177.5$

COGS 1,711.7$ 1,848.3$ 1,913.3$ 2,083.7$ 2,336.3$ 2,500.4$ 2,662.0$ 2,886.9$ 3,071.9$ 3,492.6$ 3,451.3$

COGS (%) 50.1% 51.1% 51.0% 51.7% 51.6% 50.7% 49.2% 49.5% 48.3% 48.8% 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%

SG&A 931.9$ 973.9$ 983.3$ 1,032.0$ 1,207.5$ 1,311.5$ 1,449.9$ 1,537.5$ 1,602.4$ 1,715.1$ 1,728.3$

SG&A (%) 27.3% 26.9% 26.2% 25.6% 26.7% 26.6% 26.8% 26.4% 25.2% 24.0% 24.1%

R&D 254.0$ 223.8$ 211.8$ 220.2$ 235.1$ 235.7$ 271.6$ 360.0$ 482.2$ 396.2$ 404.9$

R&D (%) 7.4% 6.2% 5.6% 5.5% 5.2% 4.8% 5.0% 6.2% 7.6% 5.5% 5.6%

Other 75.5$ 57.5$ NaN 21.5$ -NaN 100.0$ -$ -$ -$ -$ -$

Other (%) 2.2% 1.6% #VALUE! 0.5% #VALUE! 2.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Operating Income 445.3$ 514.8$ 645.9$ 675.7$ 749.1$ 787.3$ 1,031.2$ 1,050.5$ 1,203.2$ 1,552.1$ 1,593.1$

Operating Income (%) 13.0% 14.2% 17.2% 16.8% 16.5% 16.0% 19.0% 18.0% 18.9% 21.7% 22.2%

Net Int Inc & Other (72.6)$ 5.1$ (69.1)$ (47.1)$ (39.4)$ (34.4)$ (26.3)$ (15.5)$ 0.8$ 1.5$ (8.7)$

Earnings Before Taxes 372.7$ 519.9$ 576.8$ 628.6$ 709.7$ 752.9$ 1,004.9$ 1,035.0$ 1,204.0$ 1,553.6$ 1,584.4$

Income Taxes 96.9$ 127.0$ 138.4$ 148.6$ 162.7$ 170.4$ 312.6$ 279.4$ 347.8$ 425.7$ 429.6$

Earnings After Taxes 275.7$ 392.9$ 438.4$ 480.0$ 547.1$ 582.5$ 692.3$ 755.6$ 856.2$ 1,127.9$ 1,154.8$

Acctg Changes -$ -$ (36.8)$ -$ -$ -$ -$ -$ -$ -$ -$

Disc Operations -$ -$ -$ -$ -$ (115.1)$ 30.0$ (3.3)$ 33.9$ (0.9)$ (2.2)$

Ext Items -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Net Income 275.7$ 392.9$ 401.7$ 480.0$ 547.1$ 467.4$ 722.3$ 752.3$ 890.0$ 1,127.0$ 1,152.6$

Net Income (%) 8.1% 10.9% 10.7% 11.9% 12.1% 9.5% 13.3% 12.9% 14.0% 15.7% 16.1%

Diluted EPS, Cont Ops$ 1.0$ 1.5$ 1.6$ 1.8$ 2.1$ 2.2$ 2.7$ 3.0$ 3.4$ 4.5$ 4.8$

Diluted EPS$ 1.0$ 1.5$ 1.5$ 1.8$ 2.1$ 1.8$ 2.8$ 2.9$ 3.5$ 4.5$ 4.8$

Shares 265 263 269 268 264 264 260 256 255 244 241

Cash and Equiv 59.9$ 49.2$ 82.1$ 243.1$ 519.9$ 719.4$ 1,042.9$ 1,000.3$ 511.5$ 830.5$ 542.7$

Short-Term Investments 4.7$ 5.6$ 4.6$ 1.9$ -$ 32.1$ 86.8$ 106.4$ 158.0$ 199.9$ 187.5$

Accts Rec 812.5$ 751.7$ 768.1$ 746.0$ 781.3$ 807.4$ 842.8$ 885.8$ 1,083.2$ 1,079.1$ 1,062.1$

Inventory 642.5$ 678.7$ 707.7$ 697.7$ 795.0$ 738.8$ 776.0$ 875.7$ 1,052.0$ 1,080.4$ 1,180.7$

Other Current Assets 164.1$ 175.5$ 200.5$ 240.0$ 242.3$ 343.7$ 226.9$ 317.1$ 325.9$ 424.8$ 434.8$

Total Current Assets 1,683.7$ 1,660.7$ 1,762.9$ 1,928.7$ 2,338.6$ 2,641.3$ 2,975.3$ 3,185.3$ 3,130.6$ 3,614.7$ 3,407.8$

Net PP&E 1,431.2$ 1,576.1$ 1,716.0$ 1,765.7$ 1,844.8$ 1,881.0$ 1,933.7$ 2,133.6$ 2,497.3$ 2,744.5$ 2,663.1$

Intangibles 1,034.7$ 948.1$ 900.8$ 1,186.4$ 1,196.8$ 1,039.1$ 966.8$ 1,090.8$ 1,234.9$ 715.4$ 1,167.2$

Other Long-Term Assets 287.4$ 320.2$ 422.6$ 159.7$ 192.1$ 191.1$ 196.2$ 414.9$ 466.6$ 838.4$ 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$

Accts Payable 209.4$ 184.0$ 205.1$ 224.7$ 221.5$ 206.9$ 252.3$ 243.6$ 267.0$ 260.9$ -$

Short-Term Debt 631.3$ 637.7$ 454.0$ 434.6$ 121.9$ 49.3$ 206.5$ 427.2$ 207.6$ 201.3$ 405.6$

Taxes Payable 23.4$ 32.3$ 50.1$ 57.2$ 75.0$ 86.7$ 70.9$ 34.6$ 86.9$ 28.9$ -$

Accrued Liabilities 465.3$ 499.6$ 555.5$ 535.9$ 625.0$ 692.9$ 769.8$ 870.9$ 917.3$ 519.1$ -$

Other Short-Term

Liabilities -$ -$ NaN NaN -$ 14.2$ NaN -$ -$ 406.4$ 1,105.1$

Total Current Liabilities 1,329.3$ 1,353.5$ 1,264.7$ 1,252.5$ 1,043.4$ 1,050.1$ 1,299.4$ 1,576.3$ 1,478.8$ 1,416.6$ 1,510.7$

Long-Term Debt 954.2$ 779.6$ 783.0$ 803.0$ 1,184.0$ 1,171.5$ 1,060.8$ 957.0$ 955.7$ 953.2$ 747.7$

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$

Net Income 275.7$ 392.9$ 401.7$ 480.0$ 547.1$ 467.4$ 722.3$ 752.3$ 890.0$ 1,127.0$ 1,152.6$

Depr & Amort 258.9$ 288.3$ 305.7$ 304.9$ 344.5$ 357.2$ 387.5$ 405.1$ 441.3$ 477.4$ 479.2$

Deferred Taxes 4.6$ 37.3$ 37.4$ 57.2$ (1.0)$ (31.4)$ 63.2$ (129.3)$ (115.5)$ 80.1$ 97.3$

Other (107.4)$ (102.9)$ 33.9$ (6.0)$ 15.2$ 307.0$ 50.9$ 48.3$ 20.2$ 3.5$ (201.6)$

Cash from Operations 431.8$ 615.5$ 778.7$ 836.0$ 905.7$ 1,100.3$ 1,223.9$ 1,076.4$ 1,236.1$ 1,688.0$ 1,527.5$

Cap Ex (311.6)$ (376.4)$ (370.8)$ (259.7)$ (261.0)$ (265.7)$ (317.6)$ (459.3)$ (556.4)$ (602.0)$ (559.2)$

Purchase of Business (374.2)$ (21.3)$ (31.0)$ -$ -$ (24.3)$ -$ (231.5)$ (339.5)$ (41.3)$ -$

Other (130.1)$ (5.8)$ (140.2)$ (101.4)$ (88.3)$ (105.3)$ (64.4)$ (95.8)$ (122.3)$ (139.8)$ (206.2)$

Cash from Investing (815.9)$ (403.4)$ (541.9)$ (361.1)$ (349.4)$ (395.2)$ (382.0)$ (786.5)$ (1,018.3)$ (783.0)$ (765.4)$

Net Issuance of Stock 26.8$ 34.7$ 82.9$ (185.9)$ (263.4)$ (273.9)$ (426.5)$ (301.1)$ (319.5)$ (364.6)$ (470.1)$

Net Issuance of Debt 79.2$ (60.0)$ (100.1)$ (6.6)$ 396.6$ (21.7)$ (104.5)$ (0.8)$ (100.8)$ -$ -$

Dividends (88.1)$ (95.7)$ (101.3)$ (102.5)$ (104.1)$ (152.4)$ (182.2)$ (212.4)$ (239.8)$ (278.5)$ (297.8)$

Other 346.8$ (98.5)$ (82.6)$ (18.8)$ (320.8)$ (56.5)$ 188.8$ 172.2$ (66.0)$ 57.3$ 16.3$

Cash from Financing 364.7$ (219.5)$ (201.1)$ (313.7)$ (291.7)$ (504.4)$ (524.5)$ (342.2)$ (726.0)$ (585.8)$ (751.6)$

Currency Adj (4.0)$ (3.3)$ (2.7)$ (0.2)$ 12.1$ 1.6$ 3.9$ 9.7$ 15.0$ 0.8$ (26.5)$

Change in Cash (23.3)$ (10.7)$ 32.9$ 161.0$ 276.8$ 199.5$ 323.5$ (42.6)$ (488.8)$ 319.0$ (18.3)$

Cash from Operations 431.8$ 615.5$ 778.7$ 836.0$ 905.7$ 1,100.3$ 1,223.9$ 1,076.4$ 1,236.1$ 1,688.0$ 1,527.5$

Cap Ex (311.6)$ (376.4)$ (370.8)$ (259.7)$ (261.0)$ (265.7)$ (317.6)$ (459.3)$ (556.4)$ (602.0)$ (559.2)$

Free Cash Flow 223.0$ 304.8$ 336.6$ 525.2$ 630.6$ 558.9$ 792.2$ 698.1$ 774.9$ 1,002.4$ 1,072.6$

Book Value Per Share 6.67$ 7.44$ 8.66$ 9.28$ 10.97$ 11.62$ 12.63$ 14.99$ 17.11$ 20.23$ 19.93$

ticker

BDX

Financial Data

Company Name

Income Statement

Operating Expenses

Other Income and Expense

Balance Sheet

Free Cash Flow

Liabilities & Stockholders' Equity

Cash Flows Statement

Cash Flows From Operating Activities

Cash Flows From Investing Activities

Assets

Cash Flows From Financing Activities

all figures in $Mil

8/15/2009 User Growth www.oldschoolvalue.com

10.00%

Desired MOS Growth Discount % Price Share Value Buy under Actual D/C % 52Wk High 52Wk Low

50% 10.0% 9.0% 66.39$ 87.38$ 43.69$ 24% $89.24 $58.14

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Revenue 3,418.4$ 3,618.3$ 3,754.3$ 4,033.1$ 4,527.9$ 4,934.8$ 5,414.7$ 5,834.8$ 6,359.7$ 7,155.9$

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$

Operating Income 445.3$ 514.8$ 645.9$ 675.7$ 749.1$ 787.3$ 1,031.2$ 1,050.5$ 1,203.2$ 1,552.1$

Net Income 275.7$ 392.9$ 401.7$ 480.0$ 547.1$ 467.4$ 722.3$ 752.3$ 890.0$ 1,127.0$

Diluted EPS 1.0$ 1.5$ 1.5$ 1.8$ 2.1$ 1.8$ 2.8$ 2.9$ 3.5$ 4.5$

Cash from Operations 431.8$ 615.5$ 778.7$ 836.0$ 905.7$ 1,100.3$ 1,223.9$ 1,076.4$ 1,236.1$ 1,688.0$

Free Cash Flow 223.0$ 304.8$ 336.6$ 525.2$ 630.6$ 558.9$ 792.2$ 698.1$ 774.9$ 1,002.4$

Current Assets 1,683.7$ 1,660.7$ 1,762.9$ 1,928.7$ 2,338.6$ 2,641.3$ 2,975.3$ 3,185.3$ 3,130.6$ 3,614.7$

Current Liabilities 1,329.3$ 1,353.5$ 1,264.7$ 1,252.5$ 1,043.4$ 1,050.1$ 1,299.4$ 1,576.3$ 1,478.8$ 1,416.6$

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$

Tangible Shareholder Equity 734.0$ 1,007.9$ 1,428.0$ 1,301.6$ 1,700.2$ 2,028.8$ 2,317.2$ 2,745.4$ 3,127.1$ 4,220.2$

Gross Margin 49.93% 48.92% 49.04% 48.34% 48.40% 49.33% 50.84% 50.52% 51.70% 51.19%

Operating Margin 13.03% 14.23% 17.20% 16.75% 16.54% 15.95% 19.04% 18.00% 18.92% 21.69%

Net Margin 8.07% 10.86% 10.70% 11.90% 12.08% 9.47% 13.34% 12.89% 13.99% 15.75%

Current Assets>1.5 times 1.3 1.2 1.4 1.5 2.2 2.5 2.3 2.0 2.1 2.6

CROIC 10.76% 13.83% 12.77% 20.19% 18.93% 15.26% 20.82% 16.79% 16.79% 17.34%

FCF/Sales 6.5% 8.4% 9.0% 13.0% 13.9% 11.3% 14.6% 12.0% 12.2% 14.0%

Inventory Turnover 2.7 2.7 2.7 3.0 2.9 3.4 3.4 3.3 2.9 3.2

Return On Assets (ROA) 6.66% 8.79% 8.63% 9.75% 10.31% 8.25% 12.22% 11.67% 12.58% 14.79%

Retun On Equity (ROE) 16.78% 21.62% 19.12% 20.26% 20.59% 15.85% 22.85% 21.13% 21.71% 24.24%

Debt to Equity 150.9% 130.3% 106.2% 102.6% 92.3% 87.5% 84.9% 77.9% 68.0% 60.3%

Capitalization Ratio 35.0% 28.5% 25.2% 24.4% 29.0% 27.6% 24.4% 20.0% 18.0% 16.2%

FCF to Debt 8.4% 12.0% 13.6% 20.6% 23.6% 20.8% 28.4% 23.4% 26.1% 33.7%

2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008 Median

Shareholder Equity 16.5% 20.1% 17.3% 15.5% 22.1% 16.7% 16.3% 16.2% 24.0% 16.7%

Free Cash Flow 5.3% 15.7% 3.4% 11.5% 8.2% 12.1% 11.8% -1.1% 19.8% 11.5%

CROIC 16.8% 16.8% 17.9% 16.8% 17.1% 18.9% 16.8% 16.8% 16.8% 16.8%

FCF/Sales 12.2% 12.2% 12.9% 12.1% 13.1% 13.9% 12.0% 12.2% 12.2% 12.2%

ROA 11.7% 12.2% 11.0% 11.9% 12.4% 10.3% 11.7% 12.2% 12.6% 11.9%

ROE 21.1% 21.7% 20.9% 21.4% 22.3% 20.6% 21.1% 21.7% 21.7% 21.4%

Revenue Growth 8.9% 9.7% 8.8% 8.8% 9.7% 9.4% 8.7% 8.4% 10.7% 8.9%

Gross Margin 50.5% 50.8% 49.9% 50.7% 51.0% 49.3% 50.5% 50.8% 51.2% 50.7%

Operating Margin 18.0% 18.9% 17.3% 18.5% 19.0% 16.5% 18.0% 18.9% 18.9% 18.5%

Net Margin 12.9% 13.3% 12.5% 13.1% 13.7% 12.1% 12.9% 13.3% 14.0% 13.1%

Earnings Growth 13.9% 26.0% 12.3% 25.4% 17.2% 15.7% 28.7% 12.2% 23.4% 17.2%

Cash from Ops Growth 8.1% 11.3% 5.9% 4.0% 11.3% 16.2% -1.1% 0.5% 25.2% 8.1%

Growing at 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

10% 1,103$ 1,213$ 1,334$ $1,414.97 $1,542.32 $1,681.13 $1,832.43 $1,869.16 $2,020.56 $2,184.23

Growing at 3% (Default) 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

2,249.75$ 2,317.25$ 2,386.77$ 2,458.37$ 2,532.12$ 2,608.08$ 2,686.33$ 2,766.91$ 2,849.92$ 2,935.42$

Total Value

Shares Outstanding

Per Share Value

Margin of Safety

Purchase Price

Current Price

Actual Discount

Enterprise Value

Enterprise Value/EBITDA

66.39$

24%

Becton Dickinson & Coall figures in $Mil

7.844

Cash Flow Data

50%

43.69$

Projection of future Free Cash Flow

16,330.00$

20,931$

Company Name ticker

87.38$

Free Cash Flow and Tangible Shareholder Equity TrendCompany Valuation

BDX

User Input Params

Balance Sheet Data

Financial Data

Efficiency & Profitability

Margins

239.53

Income Sheet Data

Multi-Year Performance

Debt Related

$223.0 $304.8 $336.6 $525.2 $630.6 $558.9

$792.2 $698.1 $774.9 $1,002.4

$734.0 $1,007.9

$1,428.0 $1,301.6 $1,700.2

$2,028.8 $2,317.2

$2,745.4 $3,127.1

$4,220.2

$-

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

$4,000.0

$4,500.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

FCF

Shareholder Equity

Sales, Receivables, Inventory

Efficiency & Profitability Debt

Multi-Year Performance Graph

Margin Percentages

49.93% 48.92% 49.04% 48.34% 48.40% 49.33% 50.84% 50.52% 51.70% 51.19%

13.03% 14.23%17.20% 16.75% 16.54% 15.95%

19.04% 18.00% 18.92%21.69%

8.07%10.86% 10.70% 11.90% 12.08%

9.47%13.34% 12.89% 13.99%

15.75%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Gross Margin

Operating Margin

Net Margin

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

CROIC FCF/Sales ROA ROE

$-

$1,000.0

$2,000.0

$3,000.0

$4,000.0

$5,000.0

$6,000.0

$7,000.0

$8,000.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 TTM

Sales Accts Receivable Inventory

50.5% 50.8% 49.9% 50.7% 51.0% 49.3% 50.5% 50.8% 51.2%

18.0% 18.9% 17.3% 18.5% 19.0%16.5% 18.0% 18.9% 18.9%

12.9% 13.3%12.5% 13.1% 13.7%

12.1%12.9% 13.3% 14.0%

13.9%

26.0%

12.3%

25.4% 17.2%15.7%

28.7%12.2%

23.4%11.7%

12.2%

11.0%

11.9%12.4%

10.3%

11.7%

12.2%

12.6%21.1%

21.7%

20.9%

21.4%22.3%

20.6%

21.1%

21.7%

21.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008

Gross Margin Operating Margin Net Margin Earnings Growth ROA ROE

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Debt to Equity Capitalization Ratio FCF to Debt

Company Name

Becton Dickinson & Co www.oldschoolvalue.com

Desired MOS Growth Discount % Price Share Value Buy under Actual D/C % 52Wk High 52Wk Low

50% 10.0% 9% 66.39$ 87.38$ 43.69$ 24% 89.24$ 58.14$

Historical Stock Price Vs Intrinsic Value Per Share

ticker

BDXall figures in $Mil 8/15/2009

0

10

20

30

40

50

60

70

80

90

100

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

Historical Price Intrinsic Value Buy Price Linear (Historical Price)

8/15/2009 User Growth

10.00% www.oldschoolvalue.com

Desired MOS Growth Price Actual DC% Share Value Buy under P/B Ratio

66% 10.0% 66.39$ 40% 111.27$ 37.83$ 3.28

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

1.04$ 1.49$ 1.49$ 1.79$ 2.07$ 1.77$ 2.77$ 2.93$ 3.49$ 4.46$

2009 2010 2011 2012

4.20$ 4.95$ 5.24$ 5.78$

Median

2003-2007 2004-2008 2003-2006 2004-2007 2005-2008 2003-2005 2004-2006 2005-2007 2006-2008

Earnings Growth 13.9% 26.0% 12.3% 25.4% 17.2% 15.7% 28.7% 12.2% 23.4% 17.2%

EPS Weighted Average 2.61$ 3.08$ 2.39$ 2.74$ 3.41$ 2.20$ 2.49$ 3.06$ 3.63$ $2.7

4.33$

10.00%

5.12

20.23

3.28

74.37$

111.27$

66.00%

37.83$

66.39$

40%

all figures in $Mil

Diluted EPS

Multi-Year Performance

Enterprise Value Per Share

Company Stats

Normal Earnings

Expected 5 Year Growth

10 yr AA Corp Bond Rate

Actual Discount

Company Name ticker

Becton Dickinson & Co BDX

Earnings

User Input ParamsNet Net Working Capital

(2.73)$

Purchase Price

Current Price

Company Valuation

Per Share Value

Desired MOS

Book Value Per Share

Price to Book Ratio

$1.04 $1.49 $1.49

$1.79 $2.07

$1.77

$2.77 $2.93

$3.49

$4.46 $4.20

$4.95

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

EPS

Linear (EPS)

Company Name ticker

Becton Dickinson & Co BDX8/15/2009

BDX ACL BAX BCR HSIC PDCO Industry Ranking

Stock Price 66.39 127.31 55.23 73.62 51.39 25.26 NA NA

Market Cap (millions) 15,890 38,030 33,290 7,190 4,630 3,110 NA NA

52-Week High 89.24 178.56 71.53 101.61 $60.42 $33.70 NA NA

52-Week Low 58.14 66.64 45.46 68.94 32.08 15.75 NA NA

% off 52-Week Low 14.2% 91.0% 21.5% 6.8% 60.2% 60.4% NA NA

Valuation Ratios

P/E Ratio (TTM) 13.86 18.39 16.07 15.43 17.86 14.97 1.66 6

Price to Sales (TTM) 2.25 6.14 2.72 2.91 0.73 1.01 0.24 4

Price to Book (MRQ) 3.05 7.96 5.08 3.44 2.21 2.6 2.62 4

Price to Tangible Book (MRQ) 3.95 9.37 7.77 5.77 4.92 14.27 3.9 6

Price to Cash Flow (TTM) 9.56 16.65 12.15 12.44 12.88 13.54 1.29 6

Price to Free Cash Flow (TTM) 27.88 21.95 36.38 15.89 17.18 33.97 41.3 3

Enterprise Value/Revenue (TTM) 2.28 5.86 2.89 2.72 0.74 1.12 NA NA

Enterprise Value/EBITDA (TTM) 7.844 15.005 10.511 8.285 8.624 9.23 NA NA

Dividends

Dividend Yield 2.01 2.83 1.89 0.93 NA NA 0.08 2

Dividend Yield - 5 Year Avg. 1.28 1.35 1.47 0.73 0 0 0.89 3

Dividend 5 Year Growth Rate 23.3 48.17 9.42 6.96 0 0 13.32 2

Payout Ratio (TTM) 25.83 0 28.49 13.31 0 0 1.29 2

Growth Rates

Sales (MRQ) vs Qtr. 1 Yr. Ago -1.57 -3.35 -2.07 1.22 -1.82 0.19 0.37 3

Sales (TTM) vs TTM 1 Yr. Ago 2.25 6.14 2.72 2.91 0.73 1.01 0.24 4

Sales - 5 Yr. Growth Rate 9.65 13.06 6.76 11.34 14.89 9.46 6.55 4

EPS (MRQ) vs Qtr. 1 Yr. Ago 17.2 3.22 12.49 47.14 14.91 -11.17 59.22 2

EPS (TTM) vs TTM 1 Yr. Ago 11.4 16.79 19.86 36.9 3.47 -0.84 0 4

EPS - 5 Yr. Growth Rate 16 28.78 14.03 20.47 12.39 9.23 11.44 3

Capital Spending - 5 Yr. Growth Rate 14.99 15.1 3.79 -9.81 5.47 10.49 10.43 2

Financial Strength

Quick Ratio (MRQ) 1.99 2.12 1.35 4.25 1.28 2 1.83 4

Current Ratio (MRQ) 2.73 2.43 2.08 5.43 1.98 2.8 2.44 3

LT Debt to Equity (MRQ) 28.46 1.19 54.84 7.17 12.46 44.62 15.84 3

Total Debt to Equity (MRQ) 36.25 19.69 58.49 7.17 19.91 46.47 31.07 3

Profitability

Gross Margin (TTM) 52.43 76.92 51.1 61.74 29.46 33.72 5.54 3

Gross Margin - 5 Yr. Avg. 50.98 75.09 45.73 61 28.86 34.61 45.81 3

EBITD Margin (TTM) 29.38 38.97 27.12 30.25 8.1 12.17 0 3

EBITD - 5 Yr. Avg. 26.02 36.37 21.75 26.82 7.29 12.92 20.16 3

Operating Margin (TTM) 22.64 35.74 22.27 26.26 6.85 11.19 1.6 3

Operating Margin - 5 Yr. Avg. 19.44 31.71 16.51 23.76 6.09 11.96 14.78 3

Pre-Tax Margin (TTM) 22.47 33.82 21.31 26.26 6.58 10.33 1.48 3

Pre-Tax Margin - 5 Yr. Avg. 19.22 31.74 15.34 23.76 5.86 11.61 14.61 3

Net Profit Margin (TTM) 16.77 33.67 17.56 19.67 4.43 6.45 1.15 4

Net Profit Margin - 5 Yr. Avg. 13.86 27.06 12.11 17.7 3.81 7.29 9.47 3

Management Effectiveness

Return On Assets (TTM) 13.97 27.83 13.76 18.34 7.89 9.48 1.05 3

Return On Assets - 5 Yr. Avg. 12.45 24.2 9.05 15.89 7.06 10.71 7.31 3

Return On Investment (TTM) 17.11 41.23 17.75 20.51 11.19 11.71 1.57 4

Return On Investment - 5 Yr Avg 15.62 40.4 12.45 19.3 10.04 13.35 9.74 3

Return On Equity (TTM) 23.07 48.25 31.14 24.26 13.06 18.22 2.5 4

Return On Equity - 5 Yr. Avg. 22.15 47.86 24.85 22.39 13.23 18.01 11.29 4

Efficiency

Revenue/Employee (TTM) 250187 402104 252144 224727 506549 441402 386369 NA

Net Income/Employee (TTM) 41947 135370 44289 44200 22446 28479 35485 NA

Receivable Turnover (TTM) 6.1 4.74 5.62 6.06 8.66 7.37 0.59 NA

Inventory Turnover (TTM) 2.86 2.32 2.36 3.2 6.24 7.44 0.3 NA

Asset Turnover (TTM) 0.83 0.83 0.78 0.93 1.78 1.47 0.09 4

www.oldschoolvalue.com

Company Name

Becton Dickinson & Cowww.oldschoolvalue.com

TTM 2008/09 2007/09 2006/09 2005/09 2004/09 2003/09 2002/09 2001/09 2000/09 1999/09 TTM 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12

16.8% 15.7% 14.0% 12.9% 13.3% 9.5% 12.1% 11.9% 10.7% 10.9% 8.1% 1503.2 1687.1 1269.9 1073.1 1223.9 1100.3 905.7 836.0 778.6 615.5 431.8

% Change 12.5% 8.5% -3.3% 40.8% -21.6% 1.5% 11.2% -1.5% 34.6% -- % Change 32.9% 18.3% -12.3% 11.2% 21.5% 8.3% 7.4% 26.5% 42.5% --

Now 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 Now 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12

46.1% 53.8% 55.8% 44.9% 46.3% 47.3% 46.2% 49.8% 52.8% 52.8% 52.1% 13.0% 12.3% 9.0% 8.6% #VALUE! 9.0% 11.9% 12.2% 10.8% 10.2% 10.2%

% Change -3.6% 24.2% -3.0% -2.0% 2.2% -7.2% -5.6% 0.0% 1.2% -- % Change 36.4% 4.6% #VALUE! #VALUE! -24.6% -2.7% 12.8% 6.3% -0.2% --

2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12

13.5% 14.2% 12.1% 11.0% 11.9% 8.1% 9.8% 9.5% 9.1% 8.7% 6.2% 23.0% 22.8% 20.4% 19.6% 22.0% 15.4% 19.1% 19.6% 19.2% 20.5% 16.0%

% Change 17.4% 10.0% -7.6% 46.9% -17.3% 3.2% 4.4% 4.6% 40.3% -- % Change 11.8% 4.1% -10.9% 42.9% -19.4% -2.6% 2.1% -6.3% 28.1% --

2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12 2009/06 2007/12 2006/12 2005/12 2004/12 2003/12 2002/12 2001/12 2000/12 1999/12 1998/12

2.7 2.6 2.1 2.0 2.3 2.5 2.2 1.5 1.4 1.2 1.3 2.0 1.8 1.4 1.5 1.7 1.8 1.5 1.0 0.8 0.7 0.8

% Change 20.5% 4.8% -11.7% -9.0% 12.2% 45.6% 10.5% 13.6% -3.1% -- % Change 27.3% -4.1% -13.4% -6.6% 22.5% 50.5% 17.8% 15.0% -7.4% --

Magic Formula Investing -- Earnings Yield

Return on Assets (ROA) Return on Equity (ROE)

Current Ratio Quick Ratio

8/15/2009

ticker

BDX

Net Profit Margin

Magic Formula Investing -- Return on Capital

Cash Flow (Continuing Operations)

16.8%15.7%

14.0%12.9% 13.3%

9.5%

12.1% 11.9%10.7% 10.9%

8.1%

46.1%53.8% 55.8%

44.9% 46.3% 47.3% 46.2%49.8% 52.8% 52.8% 52.1%

13.5% 14.2%12.1%

11.0%11.9%

8.1%9.8% 9.5% 9.1% 8.7%

6.2%

2.7 2.6

2.1 2.02.3

2.52.2

1.51.4

1.2 1.3

1503.21687.1

1269.91073.1

1223.91100.3

905.7 836.0 778.6615.5

431.8

13.0% 12.3%

9.0% 8.6%

0.0%

9.0%

11.9% 12.2%10.8% 10.2% 10.2%

23.0% 22.8% 20.4% 19.6% 22.0%

15.4%

19.1% 19.6% 19.2%20.5%

16.0%

2.01.8

1.4 1.51.7

1.8

1.5

1.00.8 0.7 0.8