Price to Operating Profit (P/OP)
since 2005
Calculation
Edwards Lifesciences Corp., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2022 | 39.72 | = | 107.73 | ÷ | 2.71 | 2.71 | = | 1,690,300 | ÷ | 623,207,437 | |
| Feb 12, 2021 | 60.98 | = | 87.65 | ÷ | 1.44 | 1.44 | = | 897,600 | ÷ | 624,518,873 | |
| Feb 14, 2020 | 42.04 | = | 76.85 | ÷ | 1.83 | 1.83 | = | 1,146,800 | ÷ | 627,367,734 | |
| Feb 15, 2019 | 49.37 | = | 59.26 | ÷ | 1.20 | 1.20 | = | 748,200 | ÷ | 623,298,987 | |
| Feb 16, 2018 | 25.80 | = | 44.61 | ÷ | 1.73 | 1.73 | = | 1,089,400 | ÷ | 630,071,124 | |
| Feb 17, 2017 | 25.38 | = | 29.91 | ÷ | 1.18 | 1.18 | = | 751,200 | ÷ | 637,487,394 | |
| Feb 19, 2016 | — | = | 28.74 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 643,792,782 | |
| Feb 20, 2015 | — | = | 22.41 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 647,039,508 | |
| Feb 28, 2014 | — | = | 11.63 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 643,443,282 | |
| Feb 28, 2013 | — | = | 14.32 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 684,603,948 | |
| Feb 27, 2012 | — | = | 12.26 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 689,883,180 | |
| Feb 28, 2011 | — | = | 14.17 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 689,104,422 | |
| Feb 26, 2010 | — | = | 7.65 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 678,707,172 | |
| Mar 2, 2009 | — | = | 4.44 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 670,503,156 | |
| Feb 29, 2008 | — | = | 3.64 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 680,278,644 | |
| Mar 1, 2007 | — | = | 4.15 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 694,591,440 | |
| Mar 9, 2006 | — | = | 3.48 | ÷ | 0.00 | 0.00 | = | 0 | ÷ | 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.
The share price exhibited a consistent long-term upward trajectory from 2006 to 2022, increasing from 3.48 to 107.73. This growth was characterized by a steady rise in the early years followed by a more aggressive acceleration beginning around 2015.
- Operating Profit per Share Trends
- Operating profit per share, recorded from 2017 onward, demonstrated an overall increase from 1.18 to 2.71 by 2022. However, this growth was non-linear, with notable contractions occurring in 2019 and 2021, indicating periods of fluctuating operational performance.
- Price to Operating Profit (P/OP) Analysis
- The P/OP ratio reflects a period of significant valuation expansion followed by a correction. Between 2017 and 2018, the ratio remained stable at approximately 25. A sharp increase followed, with the ratio climbing to 49.37 in 2019 and reaching a peak of 60.98 in 2021. The ratio concluded the period at 39.72 in 2022, suggesting a contraction in the market valuation multiple relative to operating earnings.
- Correlation between Valuation and Earnings
- A divergence between share price and operating profit is most evident between 2019 and 2021, where the P/OP ratio surged despite inconsistent growth in operating profit per share. The subsequent reduction of the ratio to 39.72 in 2022 coincides with a substantial increase in operating profit per share to 2.71, indicating that earnings growth began to align more closely with the share price.
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Comparison to Competitors
Edwards Lifesciences Corp., P/OP, long-term trends, comparison to competitors
| Edwards Lifesciences Corp. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Feb 14, 2022 | 39.72 | 24.45 | 56.11 | 37.44 | 18.77 |
| Feb 12, 2021 | 60.98 | 40.69 | 88.37 | 26.29 | 14.12 |
| Feb 14, 2020 | 42.04 | 34.03 | 48.89 | 21.26 | 14.40 |
| Feb 15, 2019 | 49.37 | 36.64 | 49.87 | 17.64 | 14.58 |
| Feb 16, 2018 | 25.80 | 60.88 | 44.40 | 22.64 | 14.42 |
| Feb 17, 2017 | 25.38 | 24.25 | 28.93 | 22.18 | 11.79 |
| Feb 19, 2016 | — | 19.80 | 27.25 | 28.81 | 9.59 |
| Feb 20, 2015 | — | 27.50 | 34.42 | 16.68 | 10.12 |
| Feb 28, 2014 | — | 22.79 | 17.96 | 11.80 | 7.22 |
| Feb 28, 2013 | — | 6.82 | 26.21 | — | 6.32 |
| Feb 27, 2012 | — | 15.35 | 27.83 | — | 6.55 |
| Feb 28, 2011 | — | 11.92 | 23.28 | — | 5.90 |
| Feb 26, 2010 | — | 13.54 | 33.47 | — | 5.95 |
| Mar 2, 2009 | — | 14.66 | 14.45 | — | 6.59 |
| Feb 29, 2008 | — | 18.76 | 55.84 | — | 7.62 |
| Mar 1, 2007 | — | 40.49 | 38.98 | — | 10.47 |
| Mar 9, 2006 | — | 15.48 | 50.21 | — | 14.87 |
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).