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 financial period between 2006 and 2016 is characterized by a consistent increase in the intrinsic value of the company, contrasted by significant volatility in market valuation toward the end of the sequence. While the underlying equity grew steadily, the market's willingness to pay a premium over that book value experienced a sharp contraction in the final year of the analysis.
- Book Value per Share (BVPS) Growth
- A sustained upward trajectory in book value per share is observed, rising from 6.63 US$ in 2006 to 16.15 US$ by 2016. This represents a significant increase in the net asset value attributable to each share, indicating a steady accumulation of equity over the eleven-year period.
- Share Price Performance
- The share price exhibited an overall growth trend for the majority of the period, increasing from 38.29 US$ in 2006 to a peak of 69.29 US$ in 2014. However, a substantial correction occurred between 2015 and 2016, with the price falling to 39.43 US$, nearly returning to 2006 levels despite the much higher book value.
- Price to Book Value (P/BV) Ratio Analysis
- For the decade spanning 2006 to 2015, the P/BV ratio remained relatively stable, fluctuating within a range of 4.45 to 5.78. This suggests a consistent market premium applied to the company's assets. A critical divergence occurred in 2016, where the ratio dropped precipitously to 2.44. This decline was driven by the combination of a falling share price and a continuing increase in book value, signifying a marked reduction in the market's valuation multiple relative to the company's accounting value.
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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).