What is Baxter International Inc. (BAX) DCF Fair Value and Intrinsic Value in 2026?

Baxter International Inc. (BAX) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Baxter International Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Baxter International Inc. operates in the Healthcare sector (Medical Instruments & Supplies) with an economic moat rating of NONE. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Baxter International Inc.'s financial health rating and Piotroski F-Score?

Baxter International Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Baxter International Inc. (BAX) for quarterly SEC filing thesis breaks?

LocalAlpha audits Baxter International Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksBAX

BAX

Baxter International Inc.Healthcare / Medical Instruments & SuppliesINTACT

Baxter International Inc., through its subsidiaries, provides a portfolio of healthcare products in the United States. The company operates through three segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals. It offers sterile intravenous (IV) solutions; infusion systems and devices; parenteral nutrition therapies; inhaled anesthetics; generic injectable pharmaceuticals; surgical hemostat and sealant products; advanced surgical equipment; smart bed systems; patient monitoring and diagnostic technologies; and respiratory health devices, as well as advanced equipment for the surgical space comprising operating room integration technologies, precision positioning devices, and other accessories. The company also provides specialty injectable pharmaceuticals, inhaled anesthetics, and drug compounding services. Its products are used in hospitals, nursing homes, rehabilitation centers, ambulatory surgery centers, doctors' offices, kidney dialysis centers, and patients at home under physician supervision. The company sells its products through direct sales force, independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers. It operates in Eastern Europe, the Middle East, Africa, Latin America, Asia, Western Europe, Canada, Japan, Australia, and New Zealand. Baxter International Inc. was incorporated in 1931 and is headquartered in Deerfield, Illinois.

Share Price

$23.80

52W: $15.73 - $30

DCF Fair Value

$25.25

+5.7%

Thesis Hub

P/E (TTM)

20x

ROIC

10.8%

Operating Margin

14.4%

FCF Yield

8.1%

Debt / Equity

1.56x

Piotroski Score

6/9

Altman Z-Score

3.36

Market Cap

$12.3B

Price vs. Intrinsic Value Corridor

Modest Value ($23.80 vs $25.25 DCF)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$25.25

MOS Buy Target (-25%)

$18.94

Valuation Overlays: DCF Fair Value ($25.25) 25% MOS Buy Target ($18.94)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$23.80

DCF Fair Value

$25.28

+5.9%

Starting Free Cash Flow ($M)$1,000M

$100M$1,000M (Reported)$50,000M

Stage 1 Growth (Years 1-5)7.2%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$7,500M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$8.8B

PV of Terminal Value

$11.8B

Implied Enterprise Value

$20.6B

Implied Equity Value

$13.1B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,072	$1,149	$1,232	$1,321	$1,416	$1,479	$1,546	$1,616	$1,688	$1,764
Present Value (PV)	$983	$967	$951	$936	$920	$882	$846	$811	$777	$745

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number

N/A

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

Not calculable here: the formula takes a square root of EPS × book value, so it breaks down when trailing earnings (or book value) are negative. A company losing money has no defensive-investor price under Graham's classic test — lean on the DCF and solvency scores instead.

EPS: $-1.88BVPS: $12.00

Revised Graham Formula

N/A

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings7.7% Yield

$1.84 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.9BYield: 7.7%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-0.8% CAGR (Next 10 Yrs)

At the current price of $23.80, the market is assuming the business will compound Free Cash Flow at -0.8% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil BAX with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for Baxter International Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 14.4% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: Baxter International Inc. (BAX) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Baxter International Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, Baxter International Inc. has an estimated DCF intrinsic fair value of $25.25 per share compared to its current market price of $23.80. This represents an estimated 5.7% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $N/A.