Is Baxter International, Inc. overvalued or undervalued?

As of 8 February 2024, Baxter International, Inc. has moved from a fair to a risky valuation grade. The company appears to be overvalued, as indicated by its P/E ratio of 31, which is significantly higher than its peer Align Technology, Inc. with a P/E of 20.46. Additionally, Baxter's EV to EBITDA ratio stands at 32.83, compared to Align's 11.41, further highlighting the disparity in valuation metrics. The Price to Book Value of 2.94 also suggests that the stock is trading at a premium relative to its book value.
In terms of recent performance, Baxter has underperformed against the S&P 500, with a year-to-date return of -18.76% compared to the index's 12.22%. Over the past three years, Baxter's stock has declined by 59.28%, while the S&P 500 has gained 70.41%, reinforcing the notion that the stock is currently overvalued.