DCF Tool

EW

edwards lifesciences (nyse: ew) is the global leader in the science of heart valves and hemodynamic monitoring. driven by a passion to help patients, the company partners with clinicians to develop innovative technologies in the areas of structural heart disease and critical care monitoring that save and enhance lives. headquartered in irvine, california, edwards lifesciences has extensive operations in north america, europe, japan, latin america and asia and currently employs about 6,400 individuals worldwide. for us, helping patients is not a slogan – it's our life’s work. from developing devices that replace or repair a diseased heart valve to creating new technologies that monitor vital signs in the critical care setting, we help ensure that patients regain and even improve their quality of life.
Analysis Results
Intrinsic Value $81.25
Latest Price $90.28
Relative Value 11% 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 18.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.0%, 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)
2024 2.06 1.9
2025 2.44 2.06
2026 2.87 2.24
2027 3.39 2.44
2028 4.0 2.65
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 61.7 billion. This corresponds to a present value of 37.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.3 billion. Adding in the terminal value gives a total present value of 48.9 billion.

There are presently 602.0 million outstanding shares, so the intrinsic value per share is 81.25.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,035,700,000
Current Cash 1,644,500,000
Current Liabilities 1,195,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,195,800,000
Change in NCWC 337,700,000
EBIT 1,727,900,000
Tax Provision 198,700,000
Depreciation and Amortization 144,900,000
Capital Expenditure -266,300,000
Unlevered Free Cash Flow 1,729,361,297
Current Assets 3,095,800,000
Current Cash 1,215,300,000
Current Liabilities 1,022,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 858,100,000
Change in NCWC 176,500,000
EBIT 1,788,100,000
Tax Provision 245,500,000
Depreciation and Amortization 139,600,000
Capital Expenditure -264,800,000
Unlevered Free Cash Flow 1,591,024,674
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 1,592,600,000
Tax Provision 198,900,000
Depreciation and Amortization 134,800,000
Capital Expenditure -329,800,000
Unlevered Free Cash Flow 1,098,584,759
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 1,317,200,000
Tax Provision 93,300,000
Depreciation and Amortization 107,200,000
Capital Expenditure -407,000,000
Unlevered Free Cash Flow 1,113,137,864
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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