The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,760 M
Debt : $13,450 M
EBITDA : $1,880 M
Net Debt (Debt - Cash): $11,690 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Medical Instruments & Supplies
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 11.58
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $1,355 M
Average Revenue: $12,067 M
Free Cash Flow to Revenue : 11 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $4,513 M
Revenue 4 Years Ago (2020-12-31): $11,673 M
Revenue Growth: -12%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $510 M
Share Count 5 Years Ago (2020-12-31): $517 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $2.61
Dividend Per Share (DPS): $1
Payout Ratio: 40%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 2, 2 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 20%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $30
52-Week Low: $26
Threshold Price (15% Above 52-Week Low): $30
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $14,280 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 24 points to above Baxter International Inc (BAX) stock.
Value-Trades has assined P/E value 15. Since current year earning per share is $2.61.
The fair value of Baxter International Inc (BAX) stock should be (15 x $2.61) = $39.15
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