Enterprise Value (EV)
Current Enterprise Value (EV)
Boston Scientific Corp., current enterprise value calculation
| Current share price (P) | $51.94 |
| No. shares of common stock outstanding | 1,437,698,101 |
| US$ in millions | |
| Common equity (market value)1 | 74,674) |
| Add: Preferred stock, $0.01 par value (per books) | —) |
| Total equity | 74,674) |
| Add: Current debt obligations (per books) | 20) |
| Add: Long-term debt (per books) | 8,915) |
| Total equity and debt | 83,609) |
| Less: Cash and cash equivalents | 928) |
| Enterprise value (EV) | 82,681) |
Based on: 10-K (reporting date: 2022-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 51.94 × 1,437,698,101
Historical Enterprise Value (EV)
Boston Scientific Corp., EV calculation
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Boston Scientific Corp. Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 47.18 × 1,434,780,104
The enterprise value (EV) exhibits a general upward trajectory over the five-year period from 2018 to 2022, reflecting a growth in the overall valuation of the entity. While a temporary contraction occurred in 2020, a strong recovery and accelerated expansion were observed in 2021 and 2022.
- Equity Market Valuation
- Common equity market value remained relatively stable between 2018 and 2020, fluctuating within a narrow range from 54,915 million to 55,722 million. A significant shift occurred starting in 2021, where valuation increased to 62,362 million, further rising to 67,693 million by the end of 2022. This represents a total increase of approximately 22.6% over the observed period.
- Capitalization and Debt Trends
- Total equity and debt followed a growth pattern similar to the equity market value. After an initial increase in 2019 and a slight dip in 2020 to 64,058 million, the combined value climbed steadily to 76,628 million by 2022. The alignment between the growth of total equity and debt and the market value of equity suggests a proportional expansion of the company's capital structure.
- Enterprise Value Dynamics
- Enterprise value grew from 62,154 million in 2018 to 75,700 million in 2022. The dip to 62,324 million in 2020 mirrors the contraction seen in both market equity and total debt during that fiscal year. The subsequent increase in EV from 2021 onward indicates a recovery in market sentiment and an increase in the total value of the business operations.
- EV to Equity Relationship
- A consistent gap is observed between enterprise value and common equity market value. Since enterprise value accounts for debt and subtracts cash, the difference between total equity and debt and the enterprise value suggests fluctuations in the cash position. This gap widened notably in 2020 and 2021 before narrowing again in 2022, indicating changes in liquidity management or cash reserves during those periods.
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