Price to Earnings (P/E)
since 2005
Calculation
Edwards Lifesciences Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2022 | 44.67 | = | 107.73 | ÷ | 2.41 | 2.41 | = | 1,503,100 | ÷ | 623,207,437 | |
| Feb 12, 2021 | 66.48 | = | 87.65 | ÷ | 1.32 | 1.32 | = | 823,400 | ÷ | 624,518,873 | |
| Feb 14, 2020 | 46.05 | = | 76.85 | ÷ | 1.67 | 1.67 | = | 1,046,900 | ÷ | 627,367,734 | |
| Feb 15, 2019 | 51.14 | = | 59.26 | ÷ | 1.16 | 1.16 | = | 722,200 | ÷ | 623,298,987 | |
| Feb 16, 2018 | 48.16 | = | 44.61 | ÷ | 0.93 | 0.93 | = | 583,600 | ÷ | 630,071,124 | |
| Feb 17, 2017 | 33.48 | = | 29.91 | ÷ | 0.89 | 0.89 | = | 569,500 | ÷ | 637,487,394 | |
| Feb 19, 2016 | 37.39 | = | 28.74 | ÷ | 0.77 | 0.77 | = | 494,900 | ÷ | 643,792,782 | |
| Feb 20, 2015 | 17.88 | = | 22.41 | ÷ | 1.25 | 1.25 | = | 811,100 | ÷ | 647,039,508 | |
| Feb 28, 2014 | 19.10 | = | 11.63 | ÷ | 0.61 | 0.61 | = | 391,700 | ÷ | 643,443,282 | |
| Feb 28, 2013 | 33.44 | = | 14.32 | ÷ | 0.43 | 0.43 | = | 293,200 | ÷ | 684,603,948 | |
| Feb 27, 2012 | 35.73 | = | 12.26 | ÷ | 0.34 | 0.34 | = | 236,700 | ÷ | 689,883,180 | |
| Feb 28, 2011 | 44.79 | = | 14.17 | ÷ | 0.32 | 0.32 | = | 218,000 | ÷ | 689,104,422 | |
| Feb 26, 2010 | 22.66 | = | 7.65 | ÷ | 0.34 | 0.34 | = | 229,100 | ÷ | 678,707,172 | |
| Mar 2, 2009 | 23.10 | = | 4.44 | ÷ | 0.19 | 0.19 | = | 128,900 | ÷ | 670,503,156 | |
| Feb 29, 2008 | 21.91 | = | 3.64 | ÷ | 0.17 | 0.17 | = | 113,000 | ÷ | 680,278,644 | |
| Mar 1, 2007 | 22.09 | = | 4.15 | ÷ | 0.19 | 0.19 | = | 130,500 | ÷ | 694,591,440 | |
| Mar 9, 2006 | 31.20 | = | 3.48 | ÷ | 0.11 | 0.11 | = | 79,300 | ÷ | 710,878,824 |
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.
Analysis of the valuation and earnings trends reveals a long-term expansion in both share price and earnings per share (EPS), accompanied by significant volatility in the price-to-earnings (P/E) ratio over the period from 2006 to 2022.
- Share Price and Earnings Trajectory
- A consistent upward trajectory is observed in the share price, which increased from 3.48 USD in 2006 to 107.73 USD in 2022. This growth was supported by a general increase in earnings per share, which rose from 0.11 USD to 2.41 USD. While the long-term trend is positive, EPS experienced notable fluctuations, including a decline in 2016 and another in 2021, before recovering strongly in 2022.
- P/E Ratio Fluctuations and Valuation Phases
- The P/E ratio transitioned through three distinct valuation phases. From 2006 to 2010, the ratio remained relatively stable, primarily fluctuating between 21.91 and 31.20. A period of significant valuation contraction occurred between 2014 and 2015, during which the P/E ratio reached its lowest levels of 19.10 and 17.88, respectively.
- Expansion of Market Multiples
- Following the 2015 low, a period of aggressive valuation expansion is evident. The P/E ratio climbed steadily from 2016 onward, exceeding 50 in 2018 and 2019. This trend peaked in February 2021 at 66.48, indicating a substantial increase in market growth expectations relative to actual earnings. By February 2022, the ratio moderated to 44.67, though it remained significantly higher than the historical averages seen prior to 2011.
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Comparison to Competitors
Edwards Lifesciences Corp., P/E, long-term trends, comparison to competitors
| Edwards Lifesciences Corp. | Abbott Laboratories | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|
| Feb 14, 2022 | 44.67 | 29.13 | 18.13 | 59.94 | 46.56 | 26.03 |
| Feb 12, 2021 | 66.48 | 48.49 | 15.87 | 87.47 | 26.30 | 20.54 |
| Feb 14, 2020 | 46.05 | 41.83 | 15.96 | 48.72 | 28.78 | 20.48 |
| Feb 15, 2019 | 51.14 | 56.47 | 21.45 | 53.03 | 37.80 | 21.09 |
| Feb 16, 2018 | 48.16 | 220.29 | 15.44 | 70.95 | 29.96 | 20.77 |
| Feb 17, 2017 | 33.48 | 55.16 | 17.48 | 37.16 | 33.17 | 21.73 |
| Feb 19, 2016 | 37.39 | 12.83 | 12.99 | 34.24 | 40.56 | 18.18 |
| Feb 20, 2015 | 17.88 | 31.30 | 15.29 | 44.77 | 20.75 | 18.50 |
| Feb 28, 2014 | 19.10 | 23.25 | 9.95 | 22.82 | 14.99 | 12.35 |
| Feb 28, 2013 | 33.44 | 9.24 | 7.09 | 35.05 | 10.57 | 10.58 |
| Feb 27, 2012 | 35.73 | 18.67 | 8.36 | 39.05 | 13.37 | 10.78 |
| Feb 28, 2011 | 44.79 | 15.68 | 8.74 | 33.85 | 12.65 | 10.01 |
| Feb 26, 2010 | 22.66 | 14.69 | 5.53 | 54.30 | 17.11 | 9.91 |
| Mar 2, 2009 | 23.10 | 17.11 | 8.26 | 21.99 | 26.02 | 11.66 |
| Feb 29, 2008 | 21.91 | 23.82 | 12.02 | 79.87 | 20.81 | 12.85 |
| Mar 1, 2007 | 22.09 | 48.17 | 16.05 | 58.08 | 21.31 | 17.58 |
| Mar 9, 2006 | 31.20 | 20.03 | 20.66 | 36.68 | 35.12 | 24.20 |
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)
| Edwards Lifesciences Corp. | Health Care Equipment & Services | |
|---|---|---|
| Feb 14, 2022 | 44.67 | 28.98 |
| Feb 12, 2021 | 66.48 | 27.23 |
| Feb 14, 2020 | 46.05 | 25.22 |
| Feb 15, 2019 | 51.14 | 28.84 |
| Feb 16, 2018 | 48.16 | 28.17 |
| Feb 17, 2017 | 33.48 | 27.54 |
| Feb 19, 2016 | 37.39 | 20.20 |
| Feb 20, 2015 | 17.88 | 21.28 |
| Feb 28, 2014 | 19.10 | 14.93 |
| Feb 28, 2013 | 33.44 | 10.51 |
| Feb 27, 2012 | 35.73 | 14.07 |
| Feb 28, 2011 | 44.79 | 12.56 |
| Feb 26, 2010 | 22.66 | 11.86 |
| Mar 2, 2009 | 23.10 | 15.75 |
| Feb 29, 2008 | 21.91 | 17.58 |
| Mar 1, 2007 | 22.09 | 22.77 |
| Mar 9, 2006 | 31.20 | 24.03 |
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)
| Edwards Lifesciences Corp. | Health Care | |
|---|---|---|
| Feb 14, 2022 | 44.67 | 21.55 |
| Feb 12, 2021 | 66.48 | 32.22 |
| Feb 14, 2020 | 46.05 | 22.09 |
| Feb 15, 2019 | 51.14 | 24.32 |
| Feb 16, 2018 | 48.16 | 33.04 |
| Feb 17, 2017 | 33.48 | 21.90 |
| Feb 19, 2016 | 37.39 | 19.53 |
| Feb 20, 2015 | 17.88 | 21.38 |
| Feb 28, 2014 | 19.10 | 18.67 |
| Feb 28, 2013 | 33.44 | 15.77 |
| Feb 27, 2012 | 35.73 | 15.79 |
| Feb 28, 2011 | 44.79 | 15.12 |
| Feb 26, 2010 | 22.66 | 11.71 |
| Mar 2, 2009 | 23.10 | 13.07 |
| Feb 29, 2008 | 21.91 | 19.29 |
| Mar 1, 2007 | 22.09 | 18.61 |
| Mar 9, 2006 | 31.20 | 21.71 |
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).