Baxter International Inc. (BAX) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-122.1%

-$5.28

vs $23.86 price

Levered DCF

$25.49

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

2.37

Grey zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-10.92×	-22.96×	7.36×	-10.55×	33.53×	36.98×	42.45×	21.65×
P/B	1.6×	2.14×	2.33×	4.4×	4.75×	4.7×	5.4×	4.48×
P/S	0.87×	1.4×	1.89×	2.55×	3.55×	3.5×	3.75×	3.17×
EV / EBITDA	23.29×	23.8×	17.65×	-23.35×	26.69×	19.36×	24.17×	14.83×
Gross margin	30.1%	37.5%	40.1%	35.3%	38.9%	39.3%	41.9%	42.9%
Operating margin	-2.7%	0.1%	6.8%	-28.3%	11.1%	13.8%	15.6%	14.3%
Net margin	-8.5%	-6.1%	25.6%	-24.2%	10.6%	9.4%	8.8%	13.9%
Current ratio	2.31×	1.36×	1.48×	1.69×	2.09×	2.52×	2.32×	2.12×
Debt / equity	1.63×	1.93×	1.68×	2.95×	2.02×	0.78×	0.76×	0.44×
Interest coverage	-1.06×	0.03×	1.39×	-6.89×	6.52×	10.56×	15.96×	17.03×
Dividend yield	3.5%	4.0%	3.0%	2.2%	1.2%	1.2%	1.0%	1.1%
Payout ratio	-36.4%	-90.9%	22.1%	-23.6%	41.3%	42.9%	42.3%	24.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-15.6%	-9.3%	31.6%	-41.7%	14.1%	12.7%	12.7%	19.7%
Return on invested capital	-1.8%	0.1%	2.2%	-10.9%	4.2%	8.1%	11.4%	11.8%
Return on assets	-4.8%	-2.5%	9.4%	-8.6%	3.8%	5.5%	5.5%	9.8%
Free cash flow yield	3.3%	3.8%	6.6%	2.2%	3.6%	2.8%	3.3%	3.9%
Earnings yield	-9.8%	-4.4%	13.6%	-9.5%	3.0%	2.7%	2.4%	4.4%
Enterprise value	$17.8B	$26.6B	$30.6B	$41.2B	$58.5B	$43.9B	$45.2B	$36.8B
Net debt / EBITDA	10.49×	10.47×	6.36×	-8.78×	7.01×	1.36×	1.4×	0.66×
Cash conversion cycle (days)	120	119	123	183	141	110	103	99