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Baxter International Inc. (NYSE:BAX)
Price-to-Free-Cash-Flow Ratio
23.87 (As of Today)

As of today, Baxter International Inc.'s share price is $72.81. Baxter International Inc.'s Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2013 was $3.05. Hence, Baxter International Inc.'s Price-to-Free-Cash-Flow Ratio for today is 23.87.

BAX' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 12.81   Max: 31.47
Current: 23.87

12.81
31.47

During the past 13 years, Baxter International Inc.'s highest Price-to-Free-Cash-Flow Ratio was 31.47. The lowest was 12.81. And the median was 21.65.

BAX's Price-to-Free-Cash-Flow ratiois ranked higher than
74% of the 163 Companies
in the Global Medical Instruments & Supplies industry.

( Industry Median: 27.00 vs. BAX: 23.87 )

Baxter International Inc.'s Free Cash Flow per Share for the three months ended in Dec. 2013 was $1.09. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2013 was $3.05.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Baxter International Inc. was -12.90% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was -3.80% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was -0.10% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 9.30% per year.

During the past 13 years, Baxter International Inc.'s highest 3-Year average Free Cash Flow per Share Growth Rate was 65.80% per year. The lowest was -50.10% per year. And the median was 8.60% per year.


Definition

Baxter International Inc.'s Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=72.81/3.05
=23.87

Baxter International Inc.'s Share Price of today is $72.81.
Baxter International Inc.'s Free Cash Flow per Share for the trailing twelve months (TTM) ended in Dec. 2013 was 0.17 (Mar. 2013 ) + 0.76 (Jun. 2013 ) + 1.03 (Sep. 2013 ) + 1.09 (Dec. 2013 ) = $3.05.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Baxter International Inc. Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
pfcf 25.9721.5118.4123.4121.7818.9314.5915.2719.0522.80

Baxter International Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
pfcf 16.6115.2718.0613.8117.0719.0522.0124.8322.3422.80
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