Baxter International Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net income attributable to Baxter	968)	2,497)	2,012)	2,326)	2,224)
Net income attributable to noncontrolling interests	—)	—)	—)	—)	32)
Net noncash charges	477)	1,382)	1,432)	1,386)	1,601)
Changes in balance sheet items	(316)	(664)	(246)	(606)	(1,040)
Cash flows from operations	1,129)	3,215)	3,198)	3,106)	2,817)
Capital expenditures	(911)	(1,898)	(1,525)	(1,161)	(960)
Issuances of debt	6,868)	41)	3,636)	1,037)	506)
Payments of obligations	(3,776)	(1,029)	(540)	(22)	(23)
Increase (decrease) in debt with original maturities of three months or less, net	(575)	875)	—)	(250)	250)
Free cash flow to equity (FCFE)	2,735)	1,204)	4,769)	2,710)	2,590)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Baxter International Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Baxter International Inc. FCFE decreased from 2013 to 2014 but then slightly increased from 2014 to 2015.

Baxter International Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	543,887,683
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	2,735)
FCFE per share	5.03
Current share price (P)	48.08
Valuation Ratio
P/FCFE	9.56
Benchmarks
P/FCFE, Competitors¹
Abbott Laboratories	78.40
Cigna Group	8.80
CVS Health Corp.	4.23
Elevance Health Inc.	13.46
Humana Inc.	9.50
Intuitive Surgical Inc.	244.97
Medtronic PLC	18.42
UnitedHealth Group Inc.	18.33

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

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Baxter International Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
No. shares of common stock outstanding¹	547,871,849	542,581,466	543,187,695	545,928,648	560,346,203
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	2,735)	1,204)	4,769)	2,710)	2,590)
FCFE per share³	4.99	2.22	8.78	4.96	4.62
Share price^1, 4	39.43	68.67	69.29	66.42	56.59
Valuation Ratio
P/FCFE⁵	7.90	30.95	7.89	13.38	12.24
Benchmarks
P/FCFE, Competitors⁶
Abbott Laboratories	—	—	—	—	—
Cigna Group	—	—	—	—	—
CVS Health Corp.	—	—	—	—	—
Elevance Health Inc.	—	—	—	—	—
Humana Inc.	—	—	—	—	—
Intuitive Surgical Inc.	—	—	—	—	—
Medtronic PLC	—	—	—	—	—
UnitedHealth Group Inc.	—	—	—	—	—

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 See details »

³ 2015 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,735,000,000 ÷ 547,871,849 = 4.99

⁴ Closing price as at the filing date of Baxter International Inc. Annual Report.

⁵ 2015 Calculation
P/FCFE = Share price ÷ FCFE per share
= 39.43 ÷ 4.99 = 7.90

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Baxter International Inc. P/FCFE ratio increased from 2013 to 2014 but then slightly decreased from 2014 to 2015 not reaching 2013 level.

Baxter International Inc. (NYSE:BAX)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical