Baxter (BAX) Stock May Be 30% Undervalued On Cash Flow

Baxter International has delivered a 24.9% gain year to date despite its share price sitting near US$24. That mix of recent strength and long term weakness puts the focus squarely on what the company’s cash flows are really worth today. With a Discounted Cash Flow (DCF) estimate available, the key issue is how the market’s current price lines up with the cash that Baxter International is expected to generate over time. The stock has fallen 66.3% over the past 5 years, which makes the current...