Baxter International Inc (BAX) is overvalued and West Pharmaceutical Services Inc (WST) is overvalued.
Both trade above our estimate of their intrinsic value. BAX is the closer of the two: -182%, against -256% for WST.
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 10.4% (average of 3 methods) values the shares at $104.26; the price of $371.09 is 256% above that value, and 71% of that value comes from beyond year five.
Leak Score 61/100 on 10 of 12 signals
| Metric | BAX | WST |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $23.68 | $371.09 |
| Intrinsic value | $8.41 | $104.26 |
| Margin of safety | -182% | -256% |
| Leak Score | 0/100 (2/12) | 61/100 (10/12) |
| Market cap | $12.2B | $26.1B |
| Revenue growth, 5 years | -0.8% | 7.4% |
| Operating margin | 5.6% | 22.0% |
| Net margin | -8.6% | 17.0% |
| Return on equity | -14.3% | 19.1% |
| Debt to equity | 1.43 | 0.11 |
| P/E | — | 47.4x |
| Forward P/E | 11.6x | 37.1x |
| P/B | 2.0x | 8.7x |
| Dividend yield | 0.2% | 0.2% |