Find out why Baxter International’s -43.6% return over the last year is lagging behind its peers.<\/a><\/p>\n The Discounted Cash Flow (DCF) model aims to estimate a company’s intrinsic value by projecting its future cash flows and discounting them back to today. For Baxter International, this method uses expected Free Cash Flow (FCF) figures as a core input.<\/p>\n Currently, Baxter International generates FCF of around $261 million. Analyst forecasts extend to 2027, expecting FCF to grow steadily to $943 million by that year. Beyond this, projections are extrapolated, with FCF expected to exceed $1.4 billion in 2035. These projections highlight consistent growth in operational cash generation, which is a fundamental signal of underlying value.<\/p>\n By aggregating and discounting these future cash flows, the model calculates an intrinsic value of $29.53 per share. This figure is almost 38% higher than the current market price, suggesting the stock could be significantly undervalued if these expectations are met.<\/p>\n Based on the DCF outcome, Baxter International is trading at a sizable discount to its calculated intrinsic worth. This indicates strong upside potential for value-oriented investors.<\/p>\n Result: UNDERVALUED<\/p>\n Our Discounted Cash Flow (DCF) analysis suggests Baxter International is undervalued by 38.0%. Track this in your watchlist<\/a> or portfolio<\/a>, or discover 918 more undervalued stocks based on cash flows<\/a>.<\/p>\n Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Baxter International.<\/a><\/p>\n The Price-to-Sales (P\/S) ratio is often the go-to valuation metric for companies where top-line growth provides useful context, especially if earnings are volatile or temporarily negative. This makes P\/S a relevant benchmark for Baxter International right now, as it highlights how much investors are paying for every dollar of revenue, regardless of short-term profit swings.<\/p>\n In industries like Medical Equipment, a “normal” or “fair” P\/S ratio reflects not just growth expectations but also risk and wider market sentiment. Higher growth prospects and lower risk usually warrant a higher multiple, while the reverse is true for slower growth or elevated uncertainty. Context is key, which is why comparing across multiple valuation markers is critical.<\/p>\n Currently, Baxter International trades at a P\/S ratio of 0.85x. This stands in stark contrast to the industry average of 2.96x and the peer average of 4.62x, both considerably higher. However, benchmarks alone do not paint the full picture. Simply Wall St’s proprietary Fair Ratio, which weighs Baxter\u2019s revenue growth, profit margins, industry stature, and risk factors, suggests a fair price-to-sales of 1.28x for Baxter.<\/p>\n The advantage of using a Fair Ratio is that it is more nuanced than an industry or peer comparison. It takes into account company-specific growth rates, risk profile, profitability, market capitalization, and the unique characteristics of the Medical Equipment sector, offering a more accurate view of where the stock\u2019s value should sit.<\/p>\n Since Baxter’s current P\/S of 0.85x is below the Fair Ratio of 1.28x, the shares appear undervalued using this method as well.<\/p>\n Result: UNDERVALUED<\/p>\n PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1422 companies where insiders are betting big on explosive growth<\/a>.<\/p>\n Earlier we mentioned that there’s an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple, story-driven approach where you combine your perspective on a company, such as Baxter International, with financial forecasts to estimate fair value based on your own assumptions about future revenue, margins, and risks.<\/p>\n By linking the company\u2019s story to tangible financial goals, Narratives help you see how your outlook translates into a price and highlight what would need to happen for Baxter\u2019s stock to be a buy or sell at today\u2019s price.<\/p>\n Narratives are available and easy to access through Simply Wall St\u2019s Community page, where millions of investors use this powerful tool to test their convictions and share views.<\/p>\n The best part is, Narratives update in real time as new news or results come in, automatically adjusting your fair value and risk assessment. Your investment decision always stays current.<\/p>\n For example, some Baxter investors see a bright future and forecast earnings near $1 billion with a price target as high as $47, while others remain cautious, projecting $750 million in profits and a price closer to $19. This demonstrates how Narratives reflect a range of views and help you make smarter, more tailored decisions.<\/p>\n Do you think there’s more to the story for Baxter International? Head over to our Community to see what others are saying!<\/a><\/p>\n This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<\/p>\n Companies discussed in this article include BAX<\/a>.<\/p>\n Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Wondering if Baxter International is a hidden gem or a value trap? 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<\/a> NYSE:BAX PS Ratio as at Nov 2025 <\/p>\n
<\/a> NYSE:BAX Community Fair Values as at Nov 2025 <\/p>\n