Medical - Devices · NYSE
Current Price
$81.22
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Edwards Lifesciences Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Edwards Lifesciences Corporation provides products and technologies for structural heart disease, and critical care and surgical monitoring in the United States, Europe, Japan, and internationally. It offers transcatheter heart valve replacement products for the minimally invasive replacement of heart valves; and transcatheter heart valve repair and replacement products to treat mitral and tricuspid valve diseases. The company also provides the PASCAL and Cardioband transcatheter valve repair systems for minimally-invasive therapy. In addition, it offers surgical structural heart solutions, such as aortic surgical valve under the INSPIRIS name; KONECT RESILIA, a pre-assembled aortic tissue valved conduit for patients who require replacement of the valve, root, and ascending aorta; and HARPOON Beating Heart Mitral Valve Repair System for patients with degenerative mitral regurgitation. Further, the company provides critical care solutions, including advanced hemodynamic monitoring systems to measure a patient's heart function and fluid status in surgical and intensive care settings; and Acumen Hypotension Prediction Index software that alerts clinicians in advance of a patient developing dangerously low blood pressure. The company distributes its products through a direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1958 and is headquartered in Irvine, California.
ROIC (TTM)
12.1%
ROE (TTM)
10.6%
FCF Yield
2.85%
Based on trailing twelve-month data, EW shows a free cash flow per share of N/A and a ROIC of 12.1%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.85% are important context metrics when evaluating EW's stock valuation relative to peers.
The intrinsic value of EW depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether EW is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $81.22. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Edwards Lifesciences Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Medical - Devices industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting EW's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Edwards Lifesciences Corporation, this means projecting how much free cash flow the Medical - Devices will produce over the next 5-10 years, then discounting those amounts to today's dollars. EW's ROIC of 12.1% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For EW, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
