BAX
Baxter International Inc. (BAX)
Last Price$34.91.0%
Market Cap$17.9B
DCF value
$42.7
Undervalued (DCF value)
22.5%
Discount Rate
4.5%
Long-Term Growth Rate
3.0%
Stock quality
5/10
Good

BAX DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
11,673.0
2.7%
12,784.0
9.5%
15,113.0
18.2%
14,813.0
(2.0%)
4,513.0
(69.5%)
11,224.0
148.7%
11,711.8
4.3%
12,296.0
5.0%
12,842.0
4.4%
13,385.8
4.2%
13,925.1
4.0%
14,457.5
3.8%
14,980.5
3.6%
15,491.5
3.4%
15,988.2
3.2%
16,467.8
3.0%
603.0
5.2%
779.0
6.1%
(549.0)
(3.6%)
390.0
2.6%
(112.0)
(2.5%)
560.8
5.0%
585.2
5.0%
614.4
5.0%
641.7
5.0%
668.9
5.0%
695.8
5.0%
722.4
5.0%
748.6
5.0%
774.1
5.0%
798.9
5.0%
822.9
5.0%
NOPAT
% effective tax rate
518.1
4.4%
683.0
5.3%
(564.9)
(3.7%)
261.3
1.8%
(258.8)
(5.7%)
1,296.2
11.5%
1,352.5
11.5%
1,420.0
11.5%
1,483.0
11.5%
1,545.8
11.5%
1,608.1
11.5%
1,669.6
11.5%
1,730.0
11.5%
1,789.0
11.5%
1,846.4
11.5%
1,901.7
11.5%
% of revenue
823.0
7.1%
890.0
7.0%
1,380.0
9.1%
1,263.0
8.5%
0.0
0.0%
660.6
5.9%
689.3
5.9%
723.7
5.9%
755.9
5.9%
787.9
5.9%
819.6
5.9%
850.9
5.9%
881.7
5.9%
911.8
5.9%
941.0
5.9%
969.3
5.9%
% of revenue
(709.0)
(6.1%)
(743.0)
(5.8%)
(679.0)
(4.5%)
(692.0)
(4.7%)
(446.0)
(9.9%)
(712.6)
(6.3%)
(743.6)
(6.3%)
(780.7)
(6.3%)
(815.3)
(6.3%)
(849.9)
(6.3%)
(884.1)
(6.3%)
(917.9)
(6.3%)
(951.1)
(6.3%)
(983.6)
(6.3%)
(1,015.1)
(6.3%)
(1,045.5)
(6.3%)
(272.0)
(2.3%)
(161.0)
(1.3%)
(1,023.0)
(6.8%)
268.0
1.8%
0.0
0.0%
(185.6)
(1.7%)
(193.6)
(1.7%)
(203.3)
(1.7%)
(212.3)
(1.7%)
(221.3)
(1.7%)
(230.2)
(1.7%)
(239.0)
(1.7%)
(247.7)
(1.7%)
(256.1)
(1.7%)
(264.3)
(1.7%)
(272.3)
(1.7%)
Free Cash Flow to Firm (FCFF)
% of revenue
360.1
3.1%
669.0
5.2%
(886.9)
(5.9%)
1,100.3
7.4%
(704.8)
(15.6%)
1,058.6
9.4%
1,104.6
9.4%
1,159.7
9.4%
1,211.2
9.4%
1,262.5
9.4%
1,313.4
9.4%
1,363.6
9.4%
1,412.9
9.4%
1,461.1
9.4%
1,508.0
9.4%
1,553.2
9.4%
% of FCFF used in calculation
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.98
0.94
0.90
0.86
0.82
0.78
0.75
0.72
0.69
0.66
Discounted FCFF (DFCFF)
859.6
1,033.8
1,038.5
1,037.8
1,035.0
1,030.2
1,023.4
1,014.6
1,003.9
991.3

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BAX DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
10.1B
30.0%
Terminal Value (TV)
35.7B
Discounted TV
% share of EV
23.5B
70.0%
Total Debt
13.4B
Shares outstanding
514.1M
FX rate
1.0
22.5% undervalued

Equity Value Bridge

BAX DCF Financials

Revenue
$4,513.0M -> $16.0B 13.5% CAGR
Operating Income
($112.0M) -> $798.9M N/A CAGR
FCFF
($704.8M) -> $1,508.0M N/A CAGR

BAX DCF sensitivity

DCF value
Long-term Terminal growth rate
2.0%
2.5%
3.0%
3.5%
4.0%
WACC
4.0%
$44.0
$44.0
$44.0
$44.0
$44.0
4.5%
$43.0
$43.0
$43.0
$43.0
$43.0
4.5%
$43.0
$43.0
$43.0
$43.0
$43.0
5.5%
$40.0
$40.0
$40.0
$40.0
$40.0
6.0%
$38.0
$38.0
$38.0
$38.0
$38.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
2.0%
2.5%
3.0%
3.5%
4.0%
WACC
4.0%
26.0%
26.0%
26.0%
26.0%
26.0%
4.5%
23.0%
23.0%
23.0%
23.0%
23.0%
4.5%
23.0%
23.0%
23.0%
23.0%
23.0%
5.5%
15.0%
15.0%
15.0%
15.0%
15.0%
6.0%
9.0%
9.0%
9.0%
9.0%
9.0%

Explore more intrinsic value tools hub for BAX

FAQ

What is Baxter International Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Baxter International Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $42.7. This suggests it may be undervalued by 22.5% compared to its current price of around $34.9, using a WACC of 4.5% and growth rates of 3.0%.

What is Baxter International Inc. WACC?

As of Mar 03, 2025, Baxter International Inc.'s Weighted Average Cost of Capital (WACC) is approximately 4.5%.

What is Baxter International Inc. Enterprise Value?

As of Mar 03, 2025, Baxter International Inc.'s Enterprise Value (EV) is approximately $33.6B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.