Baxter International Inc.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
HC Wainwright Andrew S. Fein afein@hwco.com
Jefferies Brian Abrahams babrahams@jefferies.com
Piper Jaffray Brooks E. West brooks.e.west@pjc.com
Raymond James Christopher J. Raymond chris.raymond@raymondjames.com
Leerink Partners Danielle Antalffy danielle.antalffy@leerink.com
Cowen & Company Eric Schmidt eric.schmidt@cowen.com
Leerink Partners Geoffrey C. Porges geoffrey.porges@leerink.com
RBC Capital Markets Glenn Novarro glenn.novarro@rbccm.com
BMO Capital Markets Joanne K. Wuensch joanne.wuensch@bmo.com
William Blair John Sonnier jsonnier@williamblair.com
Cowen & Company Joshua Jennings josh.jennings@cowen.com
Piper Jaffray Joshua Schimmer joshua.e.schimmer@pjc.com
Raymond James Lawrence S. Keusch lawrence.keusch@raymondjames.com
BMO Capital Markets M. Ian Somaiya ian.somaiya@bmo.com
William Blair Margaret Kaczor mkaczor@williamblair.com
Evercore ISI Mark Schoenebaum mark.schoenebaum@evercoreisi.com
Credit Suisse Matthew Keeler matthew.keeler@credit-suisse.com
Keefe Bruyette & Woods Meyer Shields mshields@kbw.com
RBC Capital Markets Michael J. Yee michael.yee@rbccm.com
Stifel Nicolaus Rick Wise wiser@stifel.com
Guggenheim Securities William Tanner btanner@fbr.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT 447 747 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 736 935 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 22 (0) TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 15,225 12,802 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 2.94% 5.83% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv (3,891) (1,671) NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR -870.08% -223.74% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket 9.58% 10.97% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook    6.54%    7.05%
Enterprise value
EVMarket  18,372  23,734 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook    17,467  23,904
Long-Run Growth
g = IR x ROIC
  -25.56%   -13.05% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP     2.50%    2.50%
Margin from Operations M    6.90%    11.31% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D    52.45%   39.56% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 1.84  2.34  41.71%  16.98%  20.75% 13.80%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

12.70 12.49 41.71% 16.98% 20.75% 13.80%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

41.08 31.78 41.71% 16.98% 20.75% 13.80%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

24.96 25.38 41.71% 16.98% 20.75% 13.80%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

26.70 20.66 41.71% 16.98% 20.75% 13.80%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

1.21 1.85 41.71% 16.98% 20.75% 13.80%

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