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Bausch Health (BHC): Assessing Valuation After 2032 Senior Secured Note Exchange Reshapes Its Debt Profile

Simply Wall St · 2d ago

Bausch Health Companies (BHC) just reshuffled a big chunk of its balance sheet by launching a 10% senior secured exchange offer maturing in 2032 that drew strong bondholder participation and put its heavy debt load back in focus for equity investors.

See our latest analysis for Bausch Health Companies.

The refinancing push has arrived after a choppy stretch for shareholders, with the latest 1 day share price return of 2.79 percent to 7.01 contrasting with a year to date share price return of negative 11.71 percent and a 1 year total shareholder return of negative 9.55 percent. This signals that while short term momentum is improving, the longer term picture still reflects lingering concern about leverage and execution.

If this kind of balance sheet cleanup has you rethinking your healthcare exposure, it might be worth scanning other potential ideas across healthcare stocks to see how Bausch compares with the broader sector.

With the stock still trading around analysts’ fair value despite years of weak total returns and only modest earnings growth, investors face a key question: is Bausch Health quietly undervalued, or is future improvement already priced in?

Most Popular Narrative: 3.8% Undervalued

With Bausch Health Companies last closing at $7.01 against a narrative fair value of about $7.29, the story hinges on modest growth, fatter margins, and a lower future valuation multiple.

The analysts have a consensus price target of $7.083 for Bausch Health Companies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $10.0, and the most bearish reporting a price target of just $5.0.

Read the complete narrative.

Want to see why shrinking revenues, rising margins, and a sharply lower future earnings multiple still add up to upside potential? The full narrative lays out the math.

Result: Fair Value of $7.29 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside depends on navigating key risks, particularly pressure on Xifaxan pricing and the drag from the still elevated debt load at Bausch Health Companies.

Find out about the key risks to this Bausch Health Companies narrative.

Build Your Own Bausch Health Companies Narrative

If this view does not quite line up with your own thinking, you can dive into the numbers and craft a personalized version in just a few minutes, Do it your way.

A great starting point for your Bausch Health Companies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.