Alcon Inc (ALC) is overvalued and Baxter International Inc (BAX) is overvalued.
Both trade above our estimate of their intrinsic value. ALC is the closer of the two: -131%, against -182% for BAX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.9% (average of 3 methods) values the shares at $28.43; the price of $65.59 is 131% above that value, and 76% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 7.3% values the shares at $8.41; the price of $23.68 is 182% above that value, and 81% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
| Metric | ALC | BAX |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $65.59 | $23.68 |
| Intrinsic value | $28.43 | $8.41 |
| Margin of safety | -131% | -182% |
| Leak Score | 14/100 (3/12) | 0/100 (2/12) |
| Market cap | $31.6B | $12.2B |
| Revenue growth, 5 years | 8.8% | -0.8% |
| Operating margin | 10.9% | 5.6% |
| Net margin | 5.9% | -8.6% |
| Return on equity | 2.9% | -14.3% |
| Debt to equity | 0.25 | 1.43 |
| P/E | 50.3x | — |
| Forward P/E | 16.6x | 11.6x |
| P/B | 1.5x | 2.0x |
| Dividend yield | 0.6% | 0.2% |