BAXCAUTIOUS

EV/EBITDA

9.9x

Higher than 24% of Healthcare sector peers

Updated 80h ago

Sector Performance

24th percentile

BAX

9.9x

Sector Median

14.4x

Sector Avg

24.8x

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Deep Analysis

The current EV/EBITDA of 10.0x means that for every dollar of Baxter’s earnings before interest, taxes, depreciation, and amortization, the company’s total enterprise value (market cap plus debt minus cash) is valued at $10.

This is below the healthcare sector median of 12.8x, placing Baxter in the 40th percentile among peers. Over the last eight quarters, the metric has been decreasing overall, although the year-over-year change is not available and the quarter-over-quarter change is +6.3% (from 9.4x to 10.0x). The combination of a below‑median level with a decreasing long‑term trend could imply a potential value opportunity, but the recent uptick signals that the prior decline may be slowing. This mixed picture supports the overall CAUTIOUS verdict: the low absolute valuation is tempered by the recent rise, which reduces the margin of safety and introduces uncertainty about the direction.

Frequently Asked Questions

What does the EV/EBITDA tell investors about BAX?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

How does BAX's EV/EBITDA compare to its sector?

BAX's EV/EBITDA of 9.9x compares to a Healthcare sector median of 14.4x, placing it in the 24th percentile.

Who are BAX's closest peers by EV/EBITDA?

The closest Healthcare peers by EV/EBITDA include: AMGN (14.0x), CAH (14.8x), DGX (13.6x), ALGN (13.5x), AZN (15.9x).

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.