Stock Analysis on Net

Baxter International Inc. (NYSE:BAX)

This company has been moved to the archive! The financial data has not been updated since August 4, 2016.

Enterprise Value (EV) 

Microsoft Excel

Current Enterprise Value (EV)

Baxter International Inc., current enterprise value calculation

Microsoft Excel
Current share price (P) $48.08
No. shares of common stock outstanding 543,887,683
US$ in millions
Common equity (market value)1 26,150
Add: Noncontrolling interests (per books) 19
Total equity 26,169
Add: Short-term debt (per books) 1,775
Add: Current maturities of long-term debt and lease obligations (per books) 810
Add: Long-term debt and lease obligations, excluding current maturities (per books) 3,935
Total equity and debt 32,689
Less: Cash and equivalents 2,213
Less: Investment in Baxalta common stock 5,148
Enterprise value (EV) 25,328

Based on: 10-K (reporting date: 2015-12-31).

1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 48.08 × 543,887,683


Historical Enterprise Value (EV)

Baxter International Inc., EV calculation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Share price1, 2 $39.43 $68.67 $69.29 $66.42 $56.59
No. shares of common stock outstanding1 547,871,849 542,581,466 543,187,695 545,928,648 560,346,203
US$ in millions
Common equity (market value)3 21,603 37,259 37,637 36,261 31,710
Add: Noncontrolling interests (book value) 19 36 23 40 243
Total equity 21,622 37,295 37,660 36,301 31,953
Add: Short-term debt (book value) 1,775 913 181 27 256
Add: Current maturities of long-term debt and lease obligations (book value) 810 786 859 323 190
Add: Long-term debt and lease obligations, excluding current maturities (book value) 3,935 7,606 8,126 5,580 4,749
Total equity and debt 28,142 46,600 46,826 42,231 37,148
Less: Cash and equivalents 2,213 2,925 2,733 3,270 2,905
Less: Investment in Baxalta common stock 5,148
Enterprise value (EV) 20,781 43,675 44,093 38,961 34,243

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 Data adjusted for splits and stock dividends.

2 Closing price as at the filing date of Baxter International Inc. Annual Report.

3 2015 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 39.43 × 547,871,849


Equity Trends
The common equity (market value) showed a steady increase from 31,710 million US dollars in 2011 to a peak of 37,637 million US dollars in 2013. However, after 2013, there was a slight decline in 2014, followed by a sharp reduction to 21,603 million US dollars in 2015. Total equity values mirrored this pattern closely, increasing from 31,953 million US dollars in 2011 to 37,660 million US dollars in 2013, then slightly declining and experiencing a significant drop in 2015 to 21,622 million US dollars.
Debt and Total Capital Structure
Total equity and debt combined increased consistently from 37,148 million US dollars in 2011 to 46,826 million US dollars in 2013, followed by a minor decrease in 2014 to 46,600 million US dollars. In 2015, this composite value decreased sharply to 28,142 million US dollars. This indicates a substantial reduction in the company’s overall capital structure by the end of 2015.
Enterprise Value (EV) Developments
Enterprise value showed a steady upward trend from 34,243 million US dollars in 2011 to a peak of 44,093 million US dollars in 2013. There was a slight decline in 2014 to 43,675 million US dollars, then a significant drop in 2015 to 20,781 million US dollars. The pattern suggests a contraction in market perception of the company’s overall valuation and potential generating capacity during the last year of the period.
Summary of Observations
From 2011 through 2013, all key financial metrics related to equity and valuation demonstrated consistent growth, indicating a period of expansion or improving market conditions. Beginning in 2014, the values plateaued or slightly declined before experiencing pronounced decreases in 2015. The magnitude of the decreases in 2015 across market value of common equity, total equity, total capital, and enterprise value suggests a major event or shift impacting the company’s financial standing and market valuation during that year.