Baxter International Inc (BAX) is overvalued and Resmed Inc (RMD) is slightly undervalued.
Against our estimates of intrinsic value, RMD trades at the wider discount: a margin of safety of +7%, against -182% for BAX.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 9.0% (average of 3 methods) values the shares at $239.56; the price of $221.97 is 7% below that value, and 76% of that value comes from beyond year five.
Leak Score 75/100 on 10 of 12 signals
| Metric | BAX | RMD |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $23.68 | $221.97 |
| Intrinsic value | $8.41 | $239.56 |
| Margin of safety | -182% | +7% |
| Leak Score | 0/100 (2/12) | 75/100 (10/12) |
| Market cap | $12.2B | $32.0B |
| Revenue growth, 5 years | -0.8% | 12.1% |
| Operating margin | 5.6% | 34.0% |
| Net margin | -8.6% | 26.9% |
| Return on equity | -14.3% | 24.3% |
| Debt to equity | 1.43 | 0.13 |
| P/E | — | 21.3x |
| Forward P/E | 11.6x | 16.7x |
| P/B | 2.0x | 4.9x |
| Dividend yield | 0.2% | 1.2% |