Baxter International Inc (BAX) is overvalued and Solventum Corp (SOLV) is overvalued.
Both trade above our estimate of their intrinsic value. SOLV is the closer of the two: -73%, 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 8.0% (average of 3 methods) values the shares at $51.30; the price of $88.75 is 73% above that value, and 79% of that value comes from beyond year five.
Leak Score 59/100 on 3 of 12 signals
| Metric | BAX | SOLV |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $23.68 | $88.75 |
| Intrinsic value | $8.41 | $51.30 |
| Margin of safety | -182% | -73% |
| Leak Score | 0/100 (2/12) | 59/100 (3/12) |
| Market cap | $12.2B | $15.1B |
| Revenue growth, 5 years | -0.8% | 0.5% |
| Operating margin | 5.6% | 8.5% |
| Net margin | -8.6% | 17.3% |
| Return on equity | -14.3% | 34.0% |
| Debt to equity | 1.43 | 1.10 |
| P/E | — | 10.8x |
| Forward P/E | 11.6x | 12.1x |
| P/B | 2.0x | 3.1x |
| Dividend yield | 0.2% | — |