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    Bausch Health (NYSE:BHC) Valuation Check After Strong Early Uptake of New 2032 Note Exchange Offer

    Simply Wall St·12/21/2025 01:21:59
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    Bausch Health Companies (NYSE:BHC) just reported strong early participation in its exchange offer, with investors tendering roughly 2.7 billion dollars of existing 2028 secured notes into new 10.0% notes due 2032.

    See our latest analysis for Bausch Health Companies.

    This heavy early take up comes as the 1 month share price return of 13.72 percent has started to claw back some of this year’s weakness. The 1 year total shareholder return remains negative, but the 3 year total shareholder return is modestly positive, suggesting sentiment is stabilising rather than euphoric.

    If this kind of balance sheet repair has your attention, it could be worth scanning similar opportunities across pharma stocks with solid dividends to see how other names in the space stack up.

    With the balance sheet slowly healing, a share price still well below long term highs, and only a slim discount to analyst targets, is Bausch Health quietly undervalued here, or is the market already pricing in its next leg of growth?

    Most Popular Narrative: 5.6% Undervalued

    With Bausch Health Companies last closing at 6.88 dollars versus a narrative fair value near 7.29 dollars, the story leans toward modest upside rather than a dramatic mispricing.

    Continuing progress in debt reduction (for example, 7.9B dollars refinancing, repayment of high interest notes and accounts receivable facility) and focus on deleveraging are set to lower interest expenses and strengthen net earnings, reducing financial risk over time. Accelerating operational excellence via AI based sales tools for patient adherence and targeted promotional investments (notably for Xifaxan and Solta) enhances salesforce effectiveness and patient retention, supporting sustained volume growth and improved margins.

    Read the complete narrative.

    Curious how shrinking interest costs, firmer margins and a lower future earnings multiple can still point to upside? The narrative walks through those assumptions step by step, including how flat to slightly weaker revenues might still support the valuation.

    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 Xifaxan price cuts under U.S. drug negotiations and managing a still heavy debt load of 16 billion dollars.

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

    Build Your Own Bausch Health Companies Narrative

    If you see the setup differently or simply want to test your own assumptions against the numbers, you can easily build a custom view in 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.