Baxter International Inc.

BAX

HealthcareMedical - Instruments & SuppliesNYSE

$17.99

Market Cap: $9.29B

Baxter International Inc. (BAX) Valuation Summary

Updated May 11, 2026 08:07

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.81 – $154.27	$24.15	+34.3%
Revenue DCF 10Y	$1.52 – $125.22	$18.46	+2.6%
▸ Trading Multiples
EV/Revenue	$35.69 – $124.21	$49.56	+175.5%

Valuation History

DCF Analysis

Baxter International Inc. (BAX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$18.46

Market Price

$17.99

Upside / Downside

+2.6%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -2.7% to a target of 13.2% over 5 years, discounted at a WACC of 6.4%, Baxter International Inc. (BAX) has an intrinsic value of $18.46 per share (range: $1.52 – $125.22).

Key Assumptions

Current Operating Margin

-2.7%

Target Operating Margin

13.2%

WACC

6.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.0%

Target CapEx/Rev

13.6%

D&A/Revenue

9.1%

Tax Rate

16.3%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	11,362	1.1%	0.5%	51	42	1,032	(670)	371	33	32
2027	11,588	2.0%	3.6%	421	352	1,052	(782)	70	551	502
2028	11,896	2.6%	6.8%	811	679	1,080	(905)	96	758	649
2029	11,668	-1.9%	10.0%	1,167	977	1,059	(988)	-71	1,119	900
2030	11,446	-1.9%	13.2%	1,510	1,263	1,039	(1,068)	-69	1,304	986
2031	11,321	-1.1%	13.2%	1,493	1,249	1,028	(1,153)	-39	1,163	827
2032	11,290	-0.3%	13.2%	1,489	1,246	1,025	(1,247)	-10	1,034	691
2033	11,351	0.5%	13.2%	1,497	1,253	1,031	(1,351)	19	913	573
2034	11,506	1.4%	13.2%	1,518	1,270	1,045	(1,468)	48	798	471
2035	11,757	2.2%	13.2%	1,551	1,298	1,067	(1,601)	78	686	380

Enterprise Value Bridge

Sum of PV(FCFF)6,011

Terminal Value (Gordon Growth at 3.0%)20,735

PV of Terminal Value11,495

Enterprise Value17,505

(–) Net Debt8,037

Equity Value9,468

(÷) Shares Outstanding513

Fair Value per Share$18.46

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
4.4%	$-1	$31	$62	$94	$125
5.4%	$-5	$13	$31	$50	$68
6.4%	$-7	$6	$18	$31	$44
7.4%	$-8	$2	$11	$21	$31
8.4%	$-9	$-1	$7	$15	$23

Current price: $17.99. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 31.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Baxter International Inc. (BAX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$24.15

Market Price

$17.99

Upside / Downside

+34.3%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-2.7%

Target Operating Margin

13.2%

WACC

6.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.0%

Target CapEx/Rev

13.6%

D&A/Revenue

9.1%

Tax Rate

16.3%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	11,362	1.1%	0.5%	51	42	1,032	(767)	371	-65	-63
2027	11,588	2.0%	3.6%	421	352	1,052	(981)	70	352	321
2028	11,896	2.6%	6.8%	811	679	1,080	(1,212)	96	451	387
2029	11,668	-1.9%	10.0%	1,167	977	1,059	(1,389)	-71	718	578
2030	11,446	-1.9%	13.2%	1,510	1,263	1,039	(1,559)	-69	813	615

Enterprise Value Bridge

Sum of PV(FCFF)1,838

Terminal Value (Gordon Growth at 3.0%)24,583

PV of Terminal Value18,590

Enterprise Value20,428

(–) Net Debt8,037

Equity Value12,391

(÷) Shares Outstanding513

Fair Value per Share$24.15

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
4.4%	$13	$48	$84	$119	$154
5.4%	$1	$21	$42	$62	$82
6.4%	$-4	$10	$24	$38	$53
7.4%	$-7	$4	$15	$26	$36
8.4%	$-9	$-0	$9	$17	$26

Current price: $17.99. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 31.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$49.56

Market Price

$17.99

Upside / Downside

+175.5%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Baxter International Inc. (BAX) has a fair value of $49.56 based on 9 comparable companies in the Medical - Instruments & Supplies industry.

EV/Revenue Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Baxter International Inc.BAX	9,229	1.5x	1.6x
DaVita Inc.DVA	12,753	2.0x	2.0x
Madrigal Pharmaceuticals, Inc.MDGL	11,759	12.4x	8.0x
Masimo CorporationMASI	9,337	6.4x	6.4x
AptarGroup, Inc.ATR	7,722	2.3x	2.5x
Repligen CorporationRGEN	7,131	9.8x	8.8x
Qiagen N.V.QGEN	6,910	3.7x	3.6x
Bio-Rad Laboratories, Inc.BIO	6,876	3.0x	3.1x
Hims & Hers Health, Inc.HIMS	6,207	3.1x	2.6x
Avantor, Inc.AVTR	5,674	1.4x	1.4x
Industry Median		3.1x	3.1x
(*) Revenue		11,244	10,557
= Enterprise Value		34,686	32,235
(-) Net Debt		8,037	8,037
Equity Value		26,649	24,198
(/) Outstanding shares		513	513
Fair Price		$52	$47

Selected Fair Value (avg of trailing + forward)

$49.56

+175.5%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.81 – $154.27

$24.15

+34.3%

Revenue DCF 10Y

$1.52 – $125.22

$18.46

+2.6%

▸ Trading Multiples

EV/Revenue

$35.69 – $124.21

$49.56

+175.5%

DCF Analysis

Baxter International Inc. (BAX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$18.46

Market Price

$17.99

Upside / Downside

+2.6%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-2.7%

Target Operating Margin

13.2%

WACC

6.4%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.0%

Target CapEx/Rev

13.6%

D&A/Revenue

9.1%

Tax Rate

16.3%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	11,362	1.1%	0.5%	51	42	1,032	(670)	371	33	32
2027	11,588	2.0%	3.6%	421	352	1,052	(782)	70	551	502
2028	11,896	2.6%	6.8%	811	679	1,080	(905)	96	758	649
2029	11,668	-1.9%	10.0%	1,167	977	1,059	(988)	-71	1,119	900
2030	11,446	-1.9%	13.2%	1,510	1,263	1,039	(1,068)	-69	1,304	986
2031	11,321	-1.1%	13.2%	1,493	1,249	1,028	(1,153)	-39	1,163	827
2032	11,290	-0.3%	13.2%	1,489	1,246	1,025	(1,247)	-10	1,034	691
2033	11,351	0.5%	13.2%	1,497	1,253	1,031	(1,351)	19	913	573
2034	11,506	1.4%	13.2%	1,518	1,270	1,045	(1,468)	48	798	471
2035	11,757	2.2%	13.2%	1,551	1,298	1,067	(1,601)	78	686	380

Enterprise Value Bridge

Sum of PV(FCFF)6,011

Terminal Value (Gordon Growth at 3.0%)20,735

PV of Terminal Value11,495

Enterprise Value17,505

(–) Net Debt8,037

Equity Value9,468

(÷) Shares Outstanding513

Fair Value per Share$18.46

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
4.4%	$-1	$31	$62	$94	$125
5.4%	$-5	$13	$31	$50	$68
6.4%	$-7	$6	$18	$31	$44
7.4%	$-8	$2	$11	$21	$31
8.4%	$-9	$-1	$7	$15	$23

Current price: $17.99. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 31.1% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$49.56

Market Price

$17.99

Upside / Downside

+175.5%

Verdict

Undervalued

EV/Revenue Valuation — Medical - Instruments & Supplies

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Baxter International Inc.BAX	9,229	1.5x	1.6x
DaVita Inc.DVA	12,753	2.0x	2.0x
Madrigal Pharmaceuticals, Inc.MDGL	11,759	12.4x	8.0x
Masimo CorporationMASI	9,337	6.4x	6.4x
AptarGroup, Inc.ATR	7,722	2.3x	2.5x
Repligen CorporationRGEN	7,131	9.8x	8.8x
Qiagen N.V.QGEN	6,910	3.7x	3.6x
Bio-Rad Laboratories, Inc.BIO	6,876	3.0x	3.1x
Hims & Hers Health, Inc.HIMS	6,207	3.1x	2.6x
Avantor, Inc.AVTR	5,674	1.4x	1.4x
Industry Median		3.1x	3.1x
(*) Revenue		11,244	10,557
= Enterprise Value		34,686	32,235
(-) Net Debt		8,037	8,037
Equity Value		26,649	24,198
(/) Outstanding shares		513	513
Fair Price		$52	$47

Selected Fair Value (avg of trailing + forward)

$49.56

+175.5%