Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
Baxter International Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
The analysis of the quarterly financial ratios reveals distinct trends and fluctuations across the observed periods. The ratios considered include Price to Earnings (P/E), Price to Operating Profit (P/OP), Price to Sales (P/S), and Price to Book Value (P/BV).
- Price to Earnings (P/E) Ratio
- The P/E ratio begins with missing values in early 2011 and then attains a range of approximately 13.61 to 15.23 in 2011. From 2012 through 2014, it displays a generally upward trajectory, peaking at 21.18 in the third quarter of 2014. Subsequently, the ratio declines, reaching a low of 5.45 by the second quarter of 2016, with some volatility noted, especially a sharp increase in the first quarter of 2016 to 22.32 before falling steeply.
- Price to Operating Profit (P/OP) Ratio
- This ratio follows a similar pattern to the P/E ratio initially, starting with missing data in 2011 and rising steadily from 10.54 in the second quarter of 2011 to a peak of 19.27 in the fourth quarter of 2015. Notably, in 2016, the ratio experiences a pronounced spike, reaching values over 45, indicating an extreme increase in price relative to operating profit, which may suggest volatility or a shift in operating profit figures.
- Price to Sales (P/S) Ratio
- The P/S ratio remains relatively stable throughout the period, fluctuating within a narrow band. It starts around 2.18 to 2.76 between 2011 and 2014. Post-2014, it dips to a low near 1.69 in the third quarter of 2015 but rebounds to 2.6 by the second quarter of 2016. Overall, sales valuation relative to price remains moderate with limited extreme movements compared to other ratios.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio displays a downward trend over time. It begins with higher values around 4.92 in the first quarter of 2011 and gradually declines, reaching lows below 3.00 in 2015. There is a slight recovery to approximately 3.07 by mid-2016, but the overall pattern suggests diminishing market valuation compared to book value during the period.
Overall, these ratios indicate a period of growth and elevated valuation ratios up until late 2014, followed by downward adjustments and increased volatility in 2015 and early 2016. The sharp spikes and dips in the P/E and P/OP ratios, especially in 2016, warrant further investigation as they may reflect significant changes in earnings, operating profit, or market sentiment. The P/S ratio remains comparatively stable, while the consistent decline in P/BV ratio suggests a reduction in market premium over book value.
Price to Earnings (P/E)
Baxter International Inc., historical P/E calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 543,887,683 | 552,262,740 | 547,871,849 | 547,017,700 | 545,538,967 | 544,254,211 | 542,581,466 | 541,978,180 | 541,673,382 | 542,599,898 | 543,187,695 | 542,697,603 | 542,786,732 | 541,952,040 | 545,928,648 | 549,377,920 | 547,231,164 | 550,595,361 | 560,346,203 | 563,866,130 | 568,256,444 | 570,377,620 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Net income attributable to Baxter (in millions) | 1,212) | 3,380) | 205) | 1) | 332) | 430) | 953) | 468) | 520) | 556) | 326) | 544) | 590) | 552) | 494) | 583) | 661) | 588) | 463) | 576) | 615) | 570) | |||||||
| Earnings per share (EPS)2 | 8.82 | 7.09 | 1.77 | 3.14 | 4.00 | 4.36 | 4.60 | 3.45 | 3.59 | 3.72 | 3.70 | 4.02 | 4.09 | 4.23 | 4.26 | 4.18 | 4.18 | 4.07 | 3.97 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 48.08 | 45.07 | 39.43 | 37.66 | 41.88 | 68.91 | 68.67 | 70.41 | 76.09 | 72.79 | 69.29 | 65.99 | 73.04 | 68.91 | 66.42 | 63.61 | 57.95 | 55.40 | 56.59 | 54.57 | 55.92 | 58.06 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/E ratio4 | 5.45 | 6.35 | 22.32 | 12.01 | 10.47 | 15.82 | 14.92 | 20.41 | 21.18 | 19.59 | 18.71 | 16.43 | 17.87 | 16.31 | 15.59 | 15.23 | 13.86 | 13.61 | 14.26 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
EPS
= (Net income attributable to BaxterQ2 2016
+ Net income attributable to BaxterQ1 2016
+ Net income attributable to BaxterQ4 2015
+ Net income attributable to BaxterQ3 2015)
÷ No. shares of common stock outstanding
= (1,212,000,000 + 3,380,000,000 + 205,000,000 + 1,000,000)
÷ 543,887,683 = 8.82
3 Closing price as at the filing date of Baxter International Inc. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/E ratio = Share price ÷ EPS
= 48.08 ÷ 8.82 = 5.45
5 Click competitor name to see calculations.
- Share Price Trends
- The share price displayed moderate fluctuations over the observed periods, beginning at $58.06 in March 2011 and generally rising through 2013 and mid-2014, reaching a peak of $76.09 in June 2014. Subsequently, there was a noticeable decline starting in late 2014, with the price dropping significantly to a low of $37.66 by June 2015. A partial recovery occurred afterwards, with the price increasing to $48.08 by June 2016, though it remained below the earlier highs.
- Earnings Per Share (EPS) Development
- EPS data become available starting March 2012, where it registered at $3.97 and rose steadily to a high of $4.26 by March 2013. This was followed by a gradual decline through the end of 2014, reaching $3.45 in December 2014. EPS rebounded strongly in early 2015, achieving a peak of $8.82 by June 2016. The sharp increase in EPS in mid-2015 and 2016 represents a significant improvement in profitability after a period of decline.
- Price-to-Earnings (P/E) Ratio Movement
- The P/E ratio started at 14.26 in March 2012 and increased consistently, peaking at 21.18 in September 2014. After this peak, it declined sharply to a low of 5.45 by June 2016. The decreasing P/E ratio concurrent with increasing EPS in 2015 and 2016 suggests the share price decline outpaced earnings growth, potentially indicating changing market perceptions or valuation adjustments despite improved earnings.
- Overall Insights
- The period from 2011 to mid-2014 was characterized by rising share prices, increasing EPS, and an expanding P/E ratio, indicating a positive market sentiment and growth expectations. Following mid-2014, the significant drop in share price and P/E ratio alongside initially declining then sharply improving EPS implies a period of market revaluation and recovery. The divergence between the significant EPS increase and a relatively lower share price toward mid-2016 could suggest the market had not fully priced in the improved earnings at that point.
Price to Operating Profit (P/OP)
Baxter International Inc., historical P/OP calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 543,887,683 | 552,262,740 | 547,871,849 | 547,017,700 | 545,538,967 | 544,254,211 | 542,581,466 | 541,978,180 | 541,673,382 | 542,599,898 | 543,187,695 | 542,697,603 | 542,786,732 | 541,952,040 | 545,928,648 | 549,377,920 | 547,231,164 | 550,595,361 | 560,346,203 | 563,866,130 | 568,256,444 | 570,377,620 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Operating income (in millions) | 68) | 188) | 178) | 92) | 87) | 92) | 798) | 578) | 659) | 672) | 453) | 672) | 828) | 715) | 574) | 777) | 777) | 693) | 625) | 745) | 831) | 745) | |||||||
| Operating profit per share2 | 0.97 | 0.99 | 0.82 | 1.95 | 2.85 | 3.91 | 4.99 | 4.36 | 4.53 | 4.84 | 4.91 | 5.14 | 5.33 | 5.25 | 5.17 | 5.23 | 5.19 | 5.26 | 5.26 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 48.08 | 45.07 | 39.43 | 37.66 | 41.88 | 68.91 | 68.67 | 70.41 | 76.09 | 72.79 | 69.29 | 65.99 | 73.04 | 68.91 | 66.42 | 63.61 | 57.95 | 55.40 | 56.59 | 54.57 | 55.92 | 58.06 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/OP ratio4 | 49.72 | 45.67 | 48.11 | 19.27 | 14.69 | 17.63 | 13.76 | 16.16 | 16.78 | 15.05 | 14.11 | 12.84 | 13.70 | 13.14 | 12.85 | 12.17 | 11.17 | 10.54 | 10.76 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
Operating profit per share
= (Operating incomeQ2 2016
+ Operating incomeQ1 2016
+ Operating incomeQ4 2015
+ Operating incomeQ3 2015)
÷ No. shares of common stock outstanding
= (68,000,000 + 188,000,000 + 178,000,000 + 92,000,000)
÷ 543,887,683 = 0.97
3 Closing price as at the filing date of Baxter International Inc. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 48.08 ÷ 0.97 = 49.72
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited a generally upward trend from early 2011 through the end of 2014, increasing from approximately $58.06 in March 2011 to a peak near $76.09 in mid-2014. However, starting in 2015, a marked decline occurred, with prices dropping significantly to a low around $37.66 in mid-2015. Towards mid-2016, the share price showed signs of mild recovery, reaching approximately $48.08 by June 2016.
- Operating Profit Per Share (OP) Trend
- Operating profit per share was first reported in March 2012 at around $5.26, maintaining relative stability through the end of 2013 with values around $5.14 to $5.33. From 2014 onward, a clear downward trajectory is observed, falling from approximately $4.91 in early 2014 to below $1.00 by mid-2016. This indicates a substantial reduction in operating profitability per share over the evaluated period.
- Price-to-Operating Profit (P/OP) Ratio
- The P/OP ratio started at roughly 10.76 in early 2012 and increased consistently over time, reaching unusually high levels above 45 by early to mid-2016. This rising trend reflects the combination of declining operating profits per share alongside the fluctuating, ultimately reduced share prices. The ratio’s surge suggests the market valuation became disproportionately high relative to the company’s operational earnings, potentially signaling overvaluation or market expectations of future recovery during the most recent periods.
- Overall Interpretation
- The data reveals that while the share price strengthened in the initial years, it faced downward pressure coinciding with a sharp decrease in operating profit per share beginning in 2014. The increase in the P/OP ratio despite falling profits points to a disconnect between market valuation and underlying operating performance in the later quarters. This pattern suggests investor uncertainty or anticipation of turnaround potential despite deteriorating operating results.
Price to Sales (P/S)
Baxter International Inc., historical P/S calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 543,887,683 | 552,262,740 | 547,871,849 | 547,017,700 | 545,538,967 | 544,254,211 | 542,581,466 | 541,978,180 | 541,673,382 | 542,599,898 | 543,187,695 | 542,697,603 | 542,786,732 | 541,952,040 | 545,928,648 | 549,377,920 | 547,231,164 | 550,595,361 | 560,346,203 | 563,866,130 | 568,256,444 | 570,377,620 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Net sales (in millions) | 2,585) | 2,375) | 2,603) | 2,487) | 2,475) | 2,403) | 4,472) | 4,197) | 4,154) | 3,848) | 4,368) | 3,774) | 3,669) | 3,448) | 3,753) | 3,477) | 3,572) | 3,388) | 3,594) | 3,479) | 3,536) | 3,284) | |||||||
| Sales per share2 | 18.48 | 18.00 | 18.19 | 21.64 | 24.83 | 27.98 | 30.73 | 30.57 | 29.80 | 28.86 | 28.09 | 26.98 | 26.43 | 26.29 | 25.99 | 25.54 | 25.64 | 25.42 | 24.79 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 48.08 | 45.07 | 39.43 | 37.66 | 41.88 | 68.91 | 68.67 | 70.41 | 76.09 | 72.79 | 69.29 | 65.99 | 73.04 | 68.91 | 66.42 | 63.61 | 57.95 | 55.40 | 56.59 | 54.57 | 55.92 | 58.06 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/S ratio4 | 2.60 | 2.50 | 2.17 | 1.74 | 1.69 | 2.46 | 2.23 | 2.30 | 2.55 | 2.52 | 2.47 | 2.45 | 2.76 | 2.62 | 2.56 | 2.49 | 2.26 | 2.18 | 2.28 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
Sales per share
= (Net salesQ2 2016
+ Net salesQ1 2016
+ Net salesQ4 2015
+ Net salesQ3 2015)
÷ No. shares of common stock outstanding
= (2,585,000,000 + 2,375,000,000 + 2,603,000,000 + 2,487,000,000)
÷ 543,887,683 = 18.48
3 Closing price as at the filing date of Baxter International Inc. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/S ratio = Share price ÷ Sales per share
= 48.08 ÷ 18.48 = 2.60
5 Click competitor name to see calculations.
The share price of the company exhibited moderate fluctuations over the reported periods. Initially, from early 2011 to the end of 2014, the share price showed a general upward trend, rising from the mid-50s to peak near 76 US dollars. This growth reflects a positive market sentiment or performance during that timeframe. However, starting from early 2015, the price declined significantly, dropping from approximately 69 US dollars to a low near 37 US dollars by mid-2015. After this low point, the share price demonstrated a partial recovery, climbing back to around 48 US dollars by mid-2016.
Sales per share data, available from March 2012 onwards, indicates a steady incremental growth from approximately 24.79 US dollars to a peak near 30.73 US dollars at the end of 2014. This growth phase aligns with the rising share price up to that period, suggesting improving sales performance. Subsequently, sales per share experienced a marked decline starting in early 2015, decreasing to about 18 US dollars by early 2016. A slight uptick is observable towards mid-2016, reaching 18.48 US dollars, although sales levels remain well below the previous peak.
The price-to-sales (P/S) ratio follows a similar pattern. Beginning in early 2012, the ratio fluctuates between roughly 2.18 and 2.76, peaking toward late 2013. This suggests that investor valuation of sales remained relatively strong and stable during this period. Post-2014, the P/S ratio declines sharply, bottoming around 1.69 in early 2015, coinciding with the decline in the share price and sales per share. Thereafter, the P/S ratio recovers moderately, increasing to 2.6 by mid-2016, indicating an improved valuation relative to sales despite the lower absolute sales figures.
In summary, the financial data reveals an initial phase of growth and strong market valuation, as reflected in rising sales per share, share price, and stable P/S ratios until late 2014. This growth period is followed by a significant downturn during 2015, characterized by declining sales per share and share prices, with the P/S ratio also falling sharply. The partial recovery in share price and P/S ratio during 2016 suggests some restoration of investor confidence, although sales per share have not rebounded to previous highs.
- Share Price Trend
- Gradual increase to peak near $76 by end of 2014, followed by sharp decline to ~$37 in mid-2015, then partial recovery to ~$48 by mid-2016.
- Sales Per Share
- Steady growth from ~24.79 in early 2012 to ~30.73 at end of 2014, sharp decline to ~18 by early 2016, slight rise afterwards.
- Price-to-Sales (P/S) Ratio
- Fluctuated between 2.18 and 2.76 until late 2013, dropped to about 1.69 in early 2015, then improved to 2.6 by mid-2016.
- Overall Insights
- Positive growth and market valuation until late 2014, followed by a significant downturn in 2015. Partial recovery in valuation and share price observed in 2016, while underlying sales remain depressed compared to peak levels.
Price to Book Value (P/BV)
Baxter International Inc., historical P/BV calculation (quarterly data)
| Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | Dec 31, 2011 | Sep 30, 2011 | Jun 30, 2011 | Mar 31, 2011 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 543,887,683 | 552,262,740 | 547,871,849 | 547,017,700 | 545,538,967 | 544,254,211 | 542,581,466 | 541,978,180 | 541,673,382 | 542,599,898 | 543,187,695 | 542,697,603 | 542,786,732 | 541,952,040 | 545,928,648 | 549,377,920 | 547,231,164 | 550,595,361 | 560,346,203 | 563,866,130 | 568,256,444 | 570,377,620 | |||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Total Baxter shareholders’ equity (in millions) | 8,509) | 9,019) | 8,846) | 7,824) | 7,988) | 7,258) | 8,120) | 8,404) | 8,662) | 8,671) | 8,463) | 7,749) | 7,282) | 6,961) | 6,938) | 7,129) | 6,551) | 6,725) | 6,585) | 6,952) | 6,997) | 6,734) | |||||||
| Book value per share (BVPS)2 | 15.64 | 16.33 | 16.15 | 14.30 | 14.64 | 13.34 | 14.97 | 15.51 | 15.99 | 15.98 | 15.58 | 14.28 | 13.42 | 12.84 | 12.71 | 12.98 | 11.97 | 12.21 | 11.75 | 12.33 | 12.31 | 11.81 | |||||||
| Share price1, 3 | 48.08 | 45.07 | 39.43 | 37.66 | 41.88 | 68.91 | 68.67 | 70.41 | 76.09 | 72.79 | 69.29 | 65.99 | 73.04 | 68.91 | 66.42 | 63.61 | 57.95 | 55.40 | 56.59 | 54.57 | 55.92 | 58.06 | |||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/BV ratio4 | 3.07 | 2.76 | 2.44 | 2.63 | 2.86 | 5.17 | 4.59 | 4.54 | 4.76 | 4.55 | 4.45 | 4.62 | 5.44 | 5.37 | 5.23 | 4.90 | 4.84 | 4.54 | 4.82 | 4.43 | 4.54 | 4.92 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Abbott Laboratories | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| CVS Health Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Elevance Health Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Intuitive Surgical Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Medtronic PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| UnitedHealth Group Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2016 Calculation
BVPS = Total Baxter shareholders’ equity ÷ No. shares of common stock outstanding
= 8,509,000,000 ÷ 543,887,683 = 15.64
3 Closing price as at the filing date of Baxter International Inc. Quarterly or Annual Report.
4 Q2 2016 Calculation
P/BV ratio = Share price ÷ BVPS
= 48.08 ÷ 15.64 = 3.07
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a generally increasing trend from March 2011 through December 2014, rising from $58.06 to a peak of $76.09. Within this period, fluctuations included a decline in late 2013 and early 2014; however, the overall trajectory was upward. Starting in early 2015, there was a marked decline in share price, dropping sharply from around $68.91 in December 2014 to a low of $37.66 in June 2015. A moderate recovery followed, with the price increasing steadily to $48.08 by June 2016.
- Book Value Per Share (BVPS) Patterns
- Baxter International’s book value per share showed a consistent upward trend over most of the observed period, increasing gradually from $11.81 in March 2011 to a high of $16.33 in June 2016. Minor fluctuations occurred, such as slight decreases after peaks, including from December 2014 to March 2015 where BVPS dipped from $14.97 to $13.34, but the overall direction was growth, indicating an incremental increase in net asset value attributed to each share over time.
- Price-to-Book Value (P/BV) Ratio Dynamics
- The P/BV ratio mirrored the share price trends given its dependence on both market price and book value per share. From March 2011 to December 2014, the ratio remained relatively stable, fluctuating between approximately 4.43 and 5.44, reflecting a premium valuation relative to book value. Notably, from early 2015 forward, there was a significant drop in the ratio, falling to around 2.44 in December 2015. This decline illustrated a sharp correction in market valuation relative to the company’s book value, influenced predominantly by falling share price. Post-December 2015, a rebound in the ratio to 3.07 by June 2016 corresponded with the partial recovery in share price, although it remained below earlier peak levels.
- Overall Analysis
- During the initial timeframe, the company experienced growth in both market valuation and net asset value per share, indicating positive investor sentiment and fundamental improvement. The subsequent sharp decline in share price and valuation multiples in early 2015 suggests a period of market repricing, potentially due to external or company-specific factors impacting investor confidence. Despite this, the book value per share remained relatively stable and continued to grow, underscoring resilience in underlying fundamentals. The partial recovery in share price and corresponding P/BV ratio in 2016 points to a re-stabilization of market perception, though still at more conservative valuation multiples compared to the earlier period.