Edwards Lifesciences Revenue vs. Price To Book

EW Stock  USD 71.35  0.72  1.00%   
Based on Edwards Lifesciences' profitability indicators, Edwards Lifesciences Corp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Edwards Lifesciences' ability to earn profits and add value for shareholders.
 
Total Revenue  
First Reported
1999-12-31
Previous Quarter
1.4 B
Current Value
1.4 B
Quarterly Volatility
429.4 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Edwards Lifesciences' Days Sales Outstanding is fairly stable compared to the past year. Sales General And Administrative To Revenue is likely to climb to 0.36 in 2024, whereas EV To Sales is likely to drop 4.39 in 2024. At this time, Edwards Lifesciences' Operating Income is fairly stable compared to the past year. Income Before Tax is likely to climb to about 1.7 B in 2024, whereas Income Tax Expense is likely to drop slightly above 113.1 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.540.7702
Way Down
Pretty Stable
Net Profit Margin0.250.2335
Notably Up
Slightly volatile
Operating Profit Margin0.160.2555
Way Down
Slightly volatile
Pretax Profit Margin0.140.2661
Way Down
Pretty Stable
Return On Assets0.0780.1498
Way Down
Pretty Stable
Return On Equity0.110.2109
Way Down
Very volatile
For Edwards Lifesciences profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Edwards Lifesciences to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Edwards Lifesciences Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Edwards Lifesciences's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Edwards Lifesciences Corp over time as well as its relative position and ranking within its peers.
  

Edwards Lifesciences' Revenue Breakdown by Earning Segment

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Is Health Care Equipment & Supplies space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Edwards Lifesciences. If investors know Edwards will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Edwards Lifesciences listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
7.161
Earnings Share
2.59
Revenue Per Share
10.498
Quarterly Revenue Growth
0.089
Return On Assets
0.1065
The market value of Edwards Lifesciences Corp is measured differently than its book value, which is the value of Edwards that is recorded on the company's balance sheet. Investors also form their own opinion of Edwards Lifesciences' value that differs from its market value or its book value, called intrinsic value, which is Edwards Lifesciences' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Edwards Lifesciences' market value can be influenced by many factors that don't directly affect Edwards Lifesciences' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Edwards Lifesciences' value and its price as these two are different measures arrived at by different means. Investors typically determine if Edwards Lifesciences is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Edwards Lifesciences' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Edwards Lifesciences Corp Price To Book vs. Revenue Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Edwards Lifesciences's current stock value. Our valuation model uses many indicators to compare Edwards Lifesciences value to that of its competitors to determine the firm's financial worth.
Edwards Lifesciences Corp is rated below average in revenue category among its peers. It is rated below average in price to book category among its peers . The ratio of Revenue to Price To Book for Edwards Lifesciences Corp is about  1,348,484,168 . At this time, Edwards Lifesciences' Total Revenue is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Edwards Lifesciences by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Edwards Revenue vs. Competition

Edwards Lifesciences Corp is rated below average in revenue category among its peers. Market size based on revenue of Health Care industry is currently estimated at about 130.54 Billion. Edwards Lifesciences holds roughly 6 Billion in revenue claiming about 5% of equities under Health Care industry.

Edwards Price To Book vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.

Edwards Lifesciences

Revenue

 = 

Money Received

-

Discounts and Returns

 = 
B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Edwards Lifesciences

P/B

 = 

MV Per Share

BV Per Share

 = 
4.45 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Edwards Price To Book Comparison

Edwards Lifesciences is currently under evaluation in price to book category among its peers.

Edwards Lifesciences Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Edwards Lifesciences, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Edwards Lifesciences will eventually generate negative long term returns. The profitability progress is the general direction of Edwards Lifesciences' change in net profit over the period of time. It can combine multiple indicators of Edwards Lifesciences, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-242.8 M-230.7 M
Operating Income1.5 B1.6 B
Income Before Tax1.6 B1.7 B
Total Other Income Expense Net64 M67.2 M
Net Income1.4 B1.5 B
Income Tax Expense198.7 M113.1 M
Net Income Applicable To Common Shares1.8 B1.8 B
Net Income From Continuing Ops1.4 B836.3 M
Non Operating Income Net Other43.8 M46 M
Net Interest Income40.7 M42.7 M
Interest Income67.2 M70.6 M
Change To Netincome-56.5 M-53.6 M
Net Income Per Share 2.31  2.43 
Income Quality 0.64  0.61 
Net Income Per E B T 0.88  0.65 

Edwards Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Edwards Lifesciences. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Edwards Lifesciences position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Edwards Lifesciences' important profitability drivers and their relationship over time.

Use Edwards Lifesciences in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Edwards Lifesciences position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Edwards Lifesciences will appreciate offsetting losses from the drop in the long position's value.

Edwards Lifesciences Pair Trading

Edwards Lifesciences Corp Pair Trading Analysis

The ability to find closely correlated positions to Edwards Lifesciences could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Edwards Lifesciences when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Edwards Lifesciences - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Edwards Lifesciences Corp to buy it.
The correlation of Edwards Lifesciences is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Edwards Lifesciences moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Edwards Lifesciences Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Edwards Lifesciences can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Additional Tools for Edwards Stock Analysis

When running Edwards Lifesciences' price analysis, check to measure Edwards Lifesciences' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Edwards Lifesciences is operating at the current time. Most of Edwards Lifesciences' value examination focuses on studying past and present price action to predict the probability of Edwards Lifesciences' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Edwards Lifesciences' price. Additionally, you may evaluate how the addition of Edwards Lifesciences to your portfolios can decrease your overall portfolio volatility.