Price to Book Value (P/BV)
since 2005
Calculation
Baxter International Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Baxter shareholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 26, 2016 | 2.44 | = | 39.43 | ÷ | 16.15 | 16.15 | = | 8,846 | ÷ | 547,871,849 | |
| Feb 26, 2015 | 4.59 | = | 68.67 | ÷ | 14.97 | 14.97 | = | 8,120 | ÷ | 542,581,466 | |
| Feb 21, 2014 | 4.45 | = | 69.29 | ÷ | 15.58 | 15.58 | = | 8,463 | ÷ | 543,187,695 | |
| Feb 21, 2013 | 5.23 | = | 66.42 | ÷ | 12.71 | 12.71 | = | 6,938 | ÷ | 545,928,648 | |
| Feb 23, 2012 | 4.82 | = | 56.59 | ÷ | 11.75 | 11.75 | = | 6,585 | ÷ | 560,346,203 | |
| Feb 23, 2011 | 4.56 | = | 51.72 | ÷ | 11.33 | 11.33 | = | 6,567 | ÷ | 579,426,016 | |
| Feb 23, 2010 | 4.77 | = | 56.96 | ÷ | 11.93 | 11.93 | = | 7,191 | ÷ | 602,667,572 | |
| Feb 19, 2009 | 5.71 | = | 57.99 | ÷ | 10.15 | 10.15 | = | 6,229 | ÷ | 613,849,295 | |
| Feb 26, 2008 | 5.53 | = | 60.30 | ÷ | 10.90 | 10.90 | = | 6,916 | ÷ | 634,425,140 | |
| Feb 28, 2007 | 5.18 | = | 50.01 | ÷ | 9.65 | 9.65 | = | 6,272 | ÷ | 649,813,287 | |
| Mar 7, 2006 | 5.78 | = | 38.29 | ÷ | 6.63 | 6.63 | = | 4,299 | ÷ | 648,483,996 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Baxter International Inc. Annual Report.
The analysis of the financial data over the examined fiscal years reveals several noteworthy trends regarding share price, book value per share (BVPS), and the price-to-book value (P/BV) ratio.
- Share Price
- The share price experienced an upward trend from 2006 through early 2014, increasing from $38.29 to a peak of $69.29. After reaching this high, the share price demonstrated stability around the high $60 range until 2015, when it significantly declined to $39.43 by early 2016. This indicates a period of growth followed by a considerable correction or market reassessment in the final year on record.
- Book Value Per Share (BVPS)
- BVPS showed consistent growth over the entire period, rising from $6.63 in 2006 to $16.15 in 2016. There was a minor dip between 2008 and 2009, reflecting a slight decrease from $10.90 to $10.15, but this was followed by a steadier upward trajectory. The continuous increase in book value per share suggests an improvement in the company's underlying net asset value per share over the long term.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio fluctuated between 4.56 and 5.78 from 2006 to 2015, indicating that the market price was generally valued at around 4.5 to 5.8 times the book value. Notably, the ratio displays a downward trend toward the end of the period, decreasing sharply to 2.44 in 2016. This decline corresponds with the steep drop in the share price, while book value per share increased, suggesting a shift in market sentiment or valuation multiples applied by investors in the last year.
Overall, the data depict a company with growing intrinsic value as measured by book value per share. The market valuation, as reflected in the share price and P/BV ratio, showed a recovery and growth phase until 2014, followed by a sharp correction in the subsequent year. This divergence between book value growth and share price fall in the last year may warrant further investigation into external factors influencing market perceptions or operational challenges impacting investor confidence.
Comparison to Competitors
Baxter International Inc., P/BV, long-term trends, comparison to competitors
| Baxter International Inc. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Feb 26, 2016 | 2.44 | 2.68 | 1.44 | 4.67 | 2.04 | 3.12 |
| Feb 26, 2015 | 4.59 | 3.32 | 1.62 | 5.55 | 3.27 | 3.20 |
| Feb 21, 2014 | 4.45 | 2.38 | 1.00 | 4.37 | 2.78 | 2.16 |
| Feb 21, 2013 | 5.23 | 2.06 | 0.79 | 6.43 | 2.23 | 1.88 |
| Feb 23, 2012 | 4.82 | 3.61 | 0.95 | 7.31 | 2.59 | 1.96 |
| Feb 23, 2011 | 4.56 | 3.24 | 1.06 | 6.34 | 2.68 | 1.80 |
| Feb 23, 2010 | 4.77 | 3.69 | 1.06 | 8.22 | 2.89 | 1.60 |
| Feb 19, 2009 | 5.71 | 4.78 | 0.96 | 3.55 | 5.03 | 1.67 |
| Feb 26, 2008 | 5.53 | 4.83 | 1.75 | 12.99 | 5.31 | 2.98 |
| Feb 28, 2007 | 5.18 | 5.88 | 2.02 | 7.10 | 5.78 | 3.51 |
| Mar 7, 2006 | 5.78 | 4.69 | 2.04 | 7.80 | 6.06 | 4.50 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Health Care Equipment & Services)
Baxter International Inc., P/BV, long-term trends, comparison to sector (health care equipment & services)
| Baxter International Inc. | Health Care Equipment & Services | |
|---|---|---|
| Feb 26, 2016 | 2.44 | 2.39 |
| Feb 26, 2015 | 4.59 | 2.94 |
| Feb 21, 2014 | 4.45 | 2.12 |
| Feb 21, 2013 | 5.23 | 1.89 |
| Feb 23, 2012 | 4.82 | 2.39 |
| Feb 23, 2011 | 4.56 | 2.21 |
| Feb 23, 2010 | 4.77 | 2.31 |
| Feb 19, 2009 | 5.71 | 2.78 |
| Feb 26, 2008 | 5.53 | 3.52 |
| Feb 28, 2007 | 5.18 | 3.80 |
| Mar 7, 2006 | 5.78 | 3.90 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Baxter International Inc., P/BV, long-term trends, comparison to industry (health care)
| Baxter International Inc. | Health Care | |
|---|---|---|
| Feb 26, 2016 | 2.44 | 3.62 |
| Feb 26, 2015 | 4.59 | 4.10 |
| Feb 21, 2014 | 4.45 | 3.51 |
| Feb 21, 2013 | 5.23 | 2.87 |
| Feb 23, 2012 | 4.82 | 2.51 |
| Feb 23, 2011 | 4.56 | 2.24 |
| Feb 23, 2010 | 4.77 | 2.36 |
| Feb 19, 2009 | 5.71 | 2.65 |
| Feb 26, 2008 | 5.53 | 3.45 |
| Feb 28, 2007 | 5.18 | 3.81 |
| Mar 7, 2006 | 5.78 | 3.97 |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).