Stock Analysis on Net

Edwards Lifesciences Corp. (NYSE:EW)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 14, 2022.

Price to Earnings (P/E)
since 2005

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Calculation

Edwards Lifesciences Corp., P/E, long-term trends, calculation

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Based on: 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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Edwards Lifesciences Corp. Annual Report.


Share Price

The share price exhibited an overall upward trend during the period under review, rising from $3.48 in March 2006 to $107.73 in February 2022. Notably, there was a significant increase between 2009 and 2011, where the price rose from $4.44 to $14.17. Following a period of relative volatility and a dip in 2014 to $11.63, the price resumed strong growth, reaching above $40 by 2018 and surpassing $100 by 2022. This pattern indicates a generally positive market perception and growth in shareholder value over time.

Earnings Per Share (EPS)

The EPS showed positive progression with fluctuations, beginning at $0.11 in 2006 and achieving $2.41 by 2022. The growth trajectory was not linear, with some periods indicating declines, such as a drop from $1.25 in 2014 to $0.77 in 2015. However, the company managed to regain and surpass previous EPS levels, notably increasing from 1.16 in 2019 to 2.41 in 2022. This reflects improving profitability with intermittent challenges during certain years.

Price-to-Earnings (P/E) Ratio

The P/E ratio exhibited considerable volatility over the years. Initially starting at 31.2 in 2006, it decreased to the low twenties by 2008-2010, indicating a potentially undervalued or more balanced valuation relative to earnings at that time. However, from 2010 onward, the ratio rose sharply, peaking at 66.48 in 2021, before declining to 44.67 in 2022. The high P/E values in recent years suggest elevated market expectations for growth or high investor confidence despite fluctuations in earnings performance.

Overall Insights

The combination of rising share prices and increasing EPS underscores sustained growth in earnings capacity and shareholder value. The variability in the P/E ratio suggests that market sentiment and growth expectations may have had a stronger influence on valuation than earnings alone. Elevated P/E levels in the later years imply optimism about future performance, though the fluctuations point to market sensitivity concerning earnings results and broader economic factors.


Comparison to Competitors

Edwards Lifesciences Corp., P/E, long-term trends, comparison to competitors

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Based on: 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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Health Care Equipment & Services)

Edwards Lifesciences Corp., P/E, long-term trends, comparison to sector (health care equipment & services)

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Based on: 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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)

Edwards Lifesciences Corp., P/E, long-term trends, comparison to industry (health care)

Microsoft Excel

Based on: 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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).