Edwards Lifesciences Valuation

EW Stock  USD 71.27  0.79  1.12%   
At this time, the firm appears to be undervalued. Edwards Lifesciences Corp shows a prevailing Real Value of $80.47 per share. The current price of the firm is $71.27. Our model computes the value of Edwards Lifesciences Corp from reviewing the firm fundamentals such as Shares Outstanding of 589.8 M, profit margin of 0.66 %, and Current Valuation of 37.83 B as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Edwards Lifesciences' valuation include:
Price Book
4.3548
Enterprise Value
37.8 B
Enterprise Value Ebitda
21.4661
Price Sales
6.5827
Forward PE
29.0698
Undervalued
Today
71.27
Please note that Edwards Lifesciences' price fluctuation is very steady at this time. Calculation of the real value of Edwards Lifesciences Corp is based on 3 months time horizon. Increasing Edwards Lifesciences' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Edwards stock is determined by what a typical buyer is willing to pay for full or partial control of Edwards Lifesciences Corp. Since Edwards Lifesciences is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Edwards Stock. However, Edwards Lifesciences' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  71.27 Real  80.47 Target  91.33 Hype  71.32 Naive  75.05
The intrinsic value of Edwards Lifesciences' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Edwards Lifesciences' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
80.47
Real Value
82.07
Upside
Estimating the potential upside or downside of Edwards Lifesciences Corp helps investors to forecast how Edwards stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Edwards Lifesciences more accurately as focusing exclusively on Edwards Lifesciences' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.570.630.65
Details
Hype
Prediction
LowEstimatedHigh
69.7271.3272.92
Details
Naive
Forecast
LowNext ValueHigh
73.4575.0576.65
Details
32 Analysts
Consensus
LowTarget PriceHigh
83.1191.33101.38
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Edwards Lifesciences' intrinsic value based on its ongoing forecasts of Edwards Lifesciences' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Edwards Lifesciences' closest peers.

Edwards Lifesciences Cash

1.2 Billion

Edwards Valuation Trend

Analysing the historical paterns of Edwards Lifesciences' enterprise value and its market capitalization is a good way to estimate and gauge the value of Edwards Lifesciences Corp over time and is usually enough for investors to make rational market timing decisions.

Edwards Revenue by Product

Edwards Lifesciences Total Value Analysis

Edwards Lifesciences Corp is currently anticipated to have takeover value of 37.83 B with market capitalization of 41.57 B, debt of 694.9 M, and cash on hands of 769 M. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Edwards Lifesciences fundamentals before making investment evaluation based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
37.83 B
41.57 B
694.9 M
769 M

Edwards Lifesciences Investor Information

About 86.0% of the company shares are held by institutions such as insurance companies. The book value of Edwards Lifesciences was currently reported as 16.18. The company had not issued any dividends in recent years. Edwards Lifesciences Corp had 3:1 split on the 1st of June 2020. Based on the key indicators related to Edwards Lifesciences' liquidity, profitability, solvency, and operating efficiency, Edwards Lifesciences Corp may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.160.2555
Way Down
Slightly volatile
Total Cash From Operating Activities590.9 M895.8 M
Way Down
Slightly volatile
Operating Income1.6 B1.5 B
Sufficiently Up
Slightly volatile

Edwards Lifesciences Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Edwards Lifesciences has an asset utilization ratio of 64.13 percent. This indicates that the Company is making $0.64 for each dollar of assets. An increasing asset utilization means that Edwards Lifesciences Corp is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Edwards Lifesciences Ownership Allocation

Edwards Lifesciences holds a total of 589.8 Million outstanding shares. The majority of Edwards Lifesciences Corp outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Edwards Lifesciences Corp to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Edwards Lifesciences. Please pay attention to any change in the institutional holdings of Edwards Lifesciences Corp as this could imply that something significant has changed or is about to change at the company. On November 11, 2024, Representative Ro Khanna of US Congress acquired under $15k worth of Edwards Lifesciences Corp's common stock.

Edwards Lifesciences Profitability Analysis

The company generated the yearly revenue of 6 B. Reported Net Income was 1.4 B with gross profit of 4.3 B.

About Edwards Lifesciences Valuation

Our relative valuation model uses a comparative analysis of Edwards Lifesciences. We calculate exposure to Edwards Lifesciences's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Edwards Lifesciences's related companies.
Last ReportedProjected for Next Year
Gross Profit4.6 B4.9 B
Pretax Profit Margin 0.27  0.14 
Operating Profit Margin 0.26  0.16 
Net Profit Margin 0.23  0.25 
Gross Profit Margin 0.77  0.54 

Edwards Lifesciences Quarterly Retained Earnings

12.78 Billion

Edwards Lifesciences Growth Indicators

Investing in growth stocks can be very risky. If the company such as Edwards Lifesciences does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding609.4 M
Quarterly Earnings Growth Y O Y7.161
Forward Price Earnings29.0698

Edwards Lifesciences Current Valuation Indicators

Valuation refers to the process of determining the present value of Edwards Lifesciences Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Edwards we look at many different elements of the entity such as Edwards's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Edwards Lifesciences, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Edwards Lifesciences' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Edwards Lifesciences' worth.

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.