Anyone else feel like its over for Baxter? At $29 a share, SimplyWall.st suggests the stock is overvalued, with a Price-to-Earnings ratio of 120.8x. For comparison, the fair price ratio is estimated to be 51.9x, which would put the stock’s fair value closer to $12.46.
I don't think layoffs will be enough. 15b in revenue, 5.52b of that are expenses. A majority of this revenue is being wasted in the cost of sales, which means the margins on our products are too low to cover the debt. Think about this 9.42b with b is being spent on processes that are both expensive and slow. They need to fix that for long term success. Make the process faster and cheaper and increase those margins baby.
You can play the numbers to slow the fall of the stock price by using growth rate. This is what people who don't make products will do. Look at the talking points of our leadership to see old vaccines or other pipeline related talking points to increase Price/Earning to Growth rates. Its pointless though as any new product will hit the same inefficiences that the rest of our products hit, its expensive at Baxter to produce products and the margins are too low.
With analyst predictions like this:
- Revenue vs Market: BAX's revenue is expected to decline over the next 3 years (-3.1% per year).
- High Growth Revenue: BAX's revenue is forecast to decline over the next 3 years (-3.1% per year).
Calculating stock price based on that decline we are look at $9.60 a share. So we are about 10b over valued according to the numbers that are publically available.
I don't think layoffs will be enough. 15b in revenue, 5.52b of that are expenses. A majority of this revenue is being wasted in the cost of sales, which means the margins on our products are too low to cover the debt. Think about this 9.42b with b is being spent on processes that are both expensive and slow. They need to fix that for long term success. Make the process faster and cheaper and increase those margins baby.
You can play the numbers to slow the fall of the stock price by using growth rate. This is what people who don't make products will do. Look at the talking points of our leadership to see old vaccines or other pipeline related talking points to increase Price/Earning to Growth rates. Its pointless though as any new product will hit the same inefficiences that the rest of our products hit, its expensive at Baxter to produce products and the margins are too low.
With analyst predictions like this:
- Revenue vs Market: BAX's revenue is expected to decline over the next 3 years (-3.1% per year).
- High Growth Revenue: BAX's revenue is forecast to decline over the next 3 years (-3.1% per year).
Calculating stock price based on that decline we are look at $9.60 a share. So we are about 10b over valued according to the numbers that are publically available.
