As of June 16, 2025, Bausch Health Companies Inc's estimated intrinsic value ranges from $3.30 to $86.02 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $16.58 | +104.2% |
| Dividend Discount Model (Multi-Stage) | $3.30 | -59.4% |
| Earnings Power Value | $86.02 | +959.3% |
Is Bausch Health Companies Inc (BHC.TO) undervalued or overvalued?
With the current market price at $8.12, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Bausch Health Companies Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.2% | 3.7% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 3.03 | 4.66 |
| Cost of equity | 18.6% | 32.6% |
| Cost of debt | 6.9% | 14.9% |
| Tax rate | 25.9% | 26.5% |
| Debt/Equity ratio | 12.53 | 12.53 |
| After-tax WACC | 6.1% | 12.6% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $(1,234) | $20,090M | 67.2% |
| 10-Year Growth | $12 | $23,898M | 47.4% |
| 5-Year EBITDA | $(1,234) | $16,846M | 60.9% |
| 10-Year EBITDA | $2 | $20,993M | 40.1% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $3,178M |
| Discount Rate (WACC) | 12.6% - 6.1% |
| Enterprise Value | $25,273M - $52,021M |
| Net Debt | $20,376M |
| Equity Value | $4,897M - $31,645M |
| Outstanding Shares | 289M |
| Fair Value | $17 - $110 |
| Selected Fair Value | $86.02 |
| Metric | Value |
|---|---|
| Market Capitalization | $2343M |
| Enterprise Value | $30022M |
| Trailing P/E | 0.00 |
| Forward P/E | 10.05 |
| Trailing EV/EBITDA | 6.25 |
| Current Dividend Yield | 963.51% |
| Dividend Growth Rate (5Y) | 25.36% |
| Debt-to-Equity Ratio | 12.53 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 50% | $4.97 |
| Dividend Discount Model (Multi-Stage) | 33% | $0.66 |
| Earnings Power Value | 17% | $8.60 |
| Weighted Average | 100% | $23.72 |
Based on our comprehensive valuation analysis, Bausch Health Companies Inc's weighted average intrinsic value is $23.72, which is approximately 192.2% above the current market price of $8.12.
Key investment considerations:
Given these factors, we believe Bausch Health Companies Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.