I need help with estimate the company's Baxter International, Inc intrinsic value 2019. The acquisition decision, Johnson, and Johnson to purchase Baxter International, Inc

Book value is the value of the company based on the balance sheets.

$18,193,000 billion and total liabilities of $10,281,000 billion, after subtracting total liabilities from total assets to arrive at book value for Baxter International Inc of $7,912,000 billion.

Intrinsic Value

The intrinsic net worth of a company, it is a helpful tool for investors wanting to determine if a company is underpriced or overpriced, which could indicate a potential time to buy or sell. For instance, value investors search for companies trading for prices at or below book value (indicating a price-to-book ratio of less than 1.0), which implies the shares are selling for less than the company's actual worth.

Who

What

When

Where

Why

Capitalized Value

Who

What

When

Where

Why

Initial Price Offering

Who

What

When

Where

Why

Conclusion

According to current cash flow, rate of return, and future expected value, Baxter International will experience growth. When all other factors are incorporated, the capitalized value is more than the market value, showing potential growth of Baxter International, Inc. 73 million dollars. Based on this potential growth, the Baxter acquisition is a sound investment for Johnson and Johnson.

Baxter reported net income of $343 million, or $0.66 per diluted share, on a GAAP (Generally Accepted Accounting Principles) basis for the second quarter. These results include special items totaling $121 million after tax, which were primarily related to intangible asset amortization, an intangible asset impairment and business optimization initiatives. On an adjusted basis, Baxters second quarter net income totaled $464 million, or $0.89 per diluted share. Earnings growth in the quarter was driven by solid operational performance and the benefit from a lower tax rate and share count as compared to the prior year period.

For full-year 2019: The company now expects sales growth of 1% to 2% on a reported basis, and approximately 4% on both a constant currency and operational basis. Baxter expects GAAP earnings from continuing operations of $2.81 to $2.89 per share and adjusted earnings from continuing operations, before special items, of $3.34 to $3.40 per diluted share.

For third-quarter 2019: The company expects sales growth of 3% to 4% on a reported basis, and to grow approximately 5% on both a constant currency and operational basis. Baxter expects GAAP earnings from continuing operations of $0.75 to $0.78 per share and adjusted earnings from continuing operations, before special items, of $0.82 to $0.84 per diluted share.

Full-year and quarterly operational sales estimates for 2019 have been adjusted for the impact of foreign exchange and generic competition for U.S. cyclophosphamide.

Breakdown

12/31/2019

Total Assets

18,193,000

Current Assets

7,503,000

Cash, Cash Equivalents & Short Term Investments

3,335,000

Cash And Cash Equivalents

3,335,000

Other Short Term Investments

-

-

-

0

Receivables

1,896,000

Accounts receivable

1,896,000

Inventory

1,653,000

Raw Materials

377,000

Work in Process

185,000

Finished Goods

1,091,000

Prepaid Assets

230,000

Assets Held for Sale Current

-

-

-

50,000

Other Current Assets

389,000

Total non-current assets

10,690,000