Baxter International Inc
BAXAbove valueHeld by 8 superinvestors.
SEC 10-K · fundamentals
Business quality
as of 2025-12-31Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
- Revenue growth
- +5.7%
- Net margin
- -8.5%
- ROE
- -15.6%
- FCF margin
- 3.0%
Valuation · value band
Above fair value
$11–$13 value estimate
Baxter International Inc (BAX): A conservative earnings-power estimate, $11–$13 / sh; today’s price sits above it (price $27 as of 2026-08-26).
Zero-growth downside $11
Price as of 2026-08-26 · yahoo.
Method & numbers
A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.
· Greenwald zero-growth $12.60 · zero-growth base $12.60 · reproduction $5.75
Moat Franchise (moat).
Graham earnings-power value (normalized NOPAT)$11.06 – $12.60 / sh
Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 239% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).
Buffett owner-earnings value
Normalized owner earnings are non-positive over the years shown; earnings power cannot be capitalized.
Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9–11% rate band (read as a cost-of-equity proxy). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).
Years: TTM 2026-06-30, 2024, 2023, 2022, 2021
v1 simplifications: Net income is below its multi-year average (cyclical/declining): normalized owner earnings anchored to the latest year — no peak-earnings capitalization (audit #2). Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 239% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% band as a cost-of-equity proxy; no leverage premium applied. Net debt or owner earnings is unavailable, so no adjustment is made.
Reproduction value = tangible net assets $-2.75B + capitalized R&D $1.25B（FY 2026, 2024, 2023, 2022） = $5.75 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.
Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.
Growth value not assessable — No positive growth reinvestment in the matured window, so ROIIC cannot be computed.
Window TTM 2026-06-30, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 0% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.
Valuation basis: trailing twelve months to 2026-06-30 — latest 10-K plus unaudited 10-Q filings.
How to read intrinsic valueSEC 13F · holders
Superinvestors Holding This Security
8 holders · $3.12B combined · this quarter +0 opened / -0 exited
- Value$1.39BWeight (prev→now)3.5% → 4.1% ▲
- Value$1.24BWeight (prev→now)0.5% → 0.7% ▲
- Value$304.6MWeight (prev→now)4.0% → 3.5% ▼
- Value$162.4MWeight (prev→now)1.6% → 2.0% ▲
- Value$7.8MWeight (prev→now)1.6% → 1.7% ▲
- Value$5.0MWeight (prev→now)2.9% → 3.6% ▲
- Value$369,838Weight (prev→now)0.0% → 0.0% ▲
- Value$202,092Weight (prev→now)0.0% → 0.0% ▼
SEC 13F · notes
Written summary
Written summary
Baxter International Inc (BAX) is held by 8 of the superinvestors tracked on Compounder, with a combined $3.12B in reported 13F value. The largest position belongs to Richard Pzena, where it makes up 4.1% of the portfolio.
Other notable holders by value include Dodge & Cox (0.7% of its book), Edgar Wachenheim (3.5% of its book) and Steven Romick (2.0% of its book).
Over the latest quarter, 0 of the tracked filers opened a new position in BAX, 4 added to existing ones, 3 trimmed, and 0 sold out entirely.
Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.
SEC 13F · co-ownership
Also held by these investors
Investors holding Baxter International Inc (BAX) also commonly hold →
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BAX's price is not below its conservative value band. See current strike-zone stocks
Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14
Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.
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