BAX Relative Valuation
BAX's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, BAX is overvalued; if below, it's undervalued.
Historical Valuation
Baxter International Inc (BAX) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.36 is considered Undervalued compared with the five-year average of 16.81. The fair price of Baxter International Inc (BAX) is between 34.52 to 52.61 according to relative valuation methord. Compared to the current price of 23.98 USD , Baxter International Inc is Undervalued By 30.53%.
Relative Value
Fair Zone
34.52-52.61
Current Price：23.98
30.53%
Undervalued
9.52
PE
1Y
3Y
5Y
Trailing
Forward
9.18
EV/EBITDA
Baxter International Inc. (BAX) has a current EV/EBITDA of 9.18. The 5-year average EV/EBITDA is 12.50. The thresholds are as follows: Strongly Undervalued below 8.16, Undervalued between 8.16 and 10.33, Fairly Valued between 14.67 and 10.33, Overvalued between 14.67 and 16.84, and Strongly Overvalued above 16.84. The current Forward EV/EBITDA of 9.18 falls within the Undervalued range.
11.20
EV/EBIT
Baxter International Inc. (BAX) has a current EV/EBIT of 11.20. The 5-year average EV/EBIT is 16.08. The thresholds are as follows: Strongly Undervalued below 11.15, Undervalued between 11.15 and 13.62, Fairly Valued between 18.54 and 13.62, Overvalued between 18.54 and 21.00, and Strongly Overvalued above 21.00. The current Forward EV/EBIT of 11.20 falls within the Undervalued range.
1.07
PS
Baxter International Inc. (BAX) has a current PS of 1.07. The 5-year average PS is 2.03. The thresholds are as follows: Strongly Undervalued below 0.40, Undervalued between 0.40 and 1.21, Fairly Valued between 2.85 and 1.21, Overvalued between 2.85 and 3.66, and Strongly Overvalued above 3.66. The current Forward PS of 1.07 falls within the Undervalued range.
9.64
P/OCF
Baxter International Inc. (BAX) has a current P/OCF of 9.64. The 5-year average P/OCF is 12.18. The thresholds are as follows: Strongly Undervalued below 6.06, Undervalued between 6.06 and 9.12, Fairly Valued between 15.25 and 9.12, Overvalued between 15.25 and 18.31, and Strongly Overvalued above 18.31. The current Forward P/OCF of 9.64 falls within the Historic Trend Line -Fairly Valued range.
13.19
P/FCF
Baxter International Inc. (BAX) has a current P/FCF of 13.19. The 5-year average P/FCF is 16.62. The thresholds are as follows: Strongly Undervalued below 6.28, Undervalued between 6.28 and 11.45, Fairly Valued between 21.79 and 11.45, Overvalued between 21.79 and 26.97, and Strongly Overvalued above 26.97. The current Forward P/FCF of 13.19 falls within the Historic Trend Line -Fairly Valued range.
Baxter International Inc (BAX) has a current Price-to-Book (P/B) ratio of 1.65. Compared to its 3-year average P/B ratio of 2.92 , the current P/B ratio is approximately -43.65% higher. Relative to its 5-year average P/B ratio of 3.59, the current P/B ratio is about -54.18% higher. Baxter International Inc (BAX) has a Forward Free Cash Flow (FCF) yield of approximately 1.97%. Compared to its 3-year average FCF yield of 3.37%, the current FCF yield is approximately -41.55% lower. Relative to its 5-year average FCF yield of 3.38% , the current FCF yield is about -41.85% lower.
1.68
P/B
Median3y
2.92
Median5y
3.59
1.92
FCF Yield
Median3y
3.37
Median5y
3.38
Competitors Valuation Multiple
The average P/S ratio for BAX's competitors is 3.33, providing a benchmark for relative valuation. Baxter International Inc Corp (BAX) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 4.31%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of BAX decreased by 35.82% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 3.53 to 4.34.
The secondary factor is the Revenue Growth, contributed 4.31%to the performance.
Overall, the performance of BAX in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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