DCF Tool

EW

Edwards Lifesciences Corp – Surgical and Medical Instrument Manufacturing
Edwards Lifesciences is the global leader of patient-focused innovations for structural heart disease and critical care monitoring. Edwards Lifesciences is driven by a passion for patients, dedicated to improving and enhancing lives through partnerships with clinicians and stakeholders across the global healthcare landscape.
Analysis Results
Intrinsic Value $35.76
Latest Price $82.63
Relative Value 131% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 14.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.2 1.1
2023 1.38 1.15
2024 1.58 1.2
2025 1.82 1.26
2026 2.08 1.32
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 28.0 billion. This corresponds to a present value of 16.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.02 billion. Adding in the terminal value gives a total present value of 22.2 billion.

There are presently 620.0 million outstanding shares, so the intrinsic value per share is 35.76.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,180,700,000
Current Cash 1,466,800,000
Current Liabilities 1,032,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) 681,600,000
Change in NCWC -112,900,000
EBIT 1,572,000,000
Tax Provision 198,900,000
Depreciation and Amortization 134,800,000
Capital Expenditure -329,800,000
Unlevered Free Cash Flow 1,080,392,126
Current Assets 3,091,000,000
Current Cash 1,402,600,000
Current Liabilities 893,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 794,500,000
Change in NCWC 229,800,000
EBIT 911,800,000
Tax Provision 93,300,000
Depreciation and Amortization 107,200,000
Capital Expenditure -407,000,000
Unlevered Free Cash Flow 748,998,712
Current Assets 2,984,000,000
Current Cash 1,516,900,000
Current Liabilities 902,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 564,700,000
Change in NCWC 110,900,000
EBIT 1,205,800,000
Tax Provision 119,600,000
Depreciation and Amortization 89,300,000
Capital Expenditure -278,400,000
Unlevered Free Cash Flow 1,003,970,612
Current Assets 2,286,900,000
Current Cash 956,500,000
Current Liabilities 876,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 453,800,000
Change in NCWC 64,100,000
EBIT 857,000,000
Tax Provision 39,200,000
Depreciation and Amortization 77,400,000
Capital Expenditure -241,700,000
Unlevered Free Cash Flow 712,678,119
Current Assets 2,532,100,000
Current Cash 1,337,500,000
Current Liabilities 1,402,900,000
Current Debt 598,000,000
Non-Cash Working Capital (NCWC) 389,700,000
Change in NCWC -46,700,000
EBIT 1,093,300,000
Tax Provision 451,300,000
Depreciation and Amortization 81,900,000
Capital Expenditure -175,500,000
Unlevered Free Cash Flow 476,232,882
Current Assets 2,240,000,000
Current Cash 1,271,100,000
Current Liabilities 532,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 436,400,000
Change in NCWC 89,400,000
EBIT 785,900,000
Tax Provision 168,400,000
Depreciation and Amortization 71,200,000
Capital Expenditure -217,400,000
Unlevered Free Cash Flow 549,745,670
Current Assets 2,047,900,000
Current Cash 1,224,700,000
Current Liabilities 476,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 347,000,000
Change in NCWC -74,400,000
EBIT 635,800,000
Tax Provision 127,500,000
Depreciation and Amortization 65,800,000
Capital Expenditure -102,700,000
Unlevered Free Cash Flow 394,254,980
Current Assets 2,294,600,000
Current Cash 1,438,800,000
Current Liabilities 434,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 421,400,000
Change in NCWC -21,900,000
EBIT 1,232,200,000
Tax Provision 332,900,000
Depreciation and Amortization 68,600,000
Capital Expenditure -82,900,000
Unlevered Free Cash Flow 837,434,108
Current Assets 1,725,800,000
Current Cash 936,900,000
Current Liabilities 345,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 443,300,000
Change in NCWC 20,200,000
EBIT 454,100,000
Tax Provision 123,600,000
Depreciation and Amortization 68,700,000
Capital Expenditure -110,100,000
Unlevered Free Cash Flow 323,979,448
Current Assets 1,291,900,000
Current Cash 521,400,000
Current Liabilities 347,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 423,100,000
Change in NCWC 40,300,000
EBIT 407,300,000
Tax Provision 97,900,000
Depreciation and Amortization 57,300,000
Capital Expenditure -120,700,000
Unlevered Free Cash Flow 282,244,822

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