Price to Sales (P/S)
since 2005
Calculation
Edwards Lifesciences Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2022 | 12.83 | = | 107.73 | ÷ | 8.40 | 8.40 | = | 5,232,500 | ÷ | 623,207,437 | |
| Feb 12, 2021 | 12.48 | = | 87.65 | ÷ | 7.02 | 7.02 | = | 4,386,300 | ÷ | 624,518,873 | |
| Feb 14, 2020 | 11.09 | = | 76.85 | ÷ | 6.93 | 6.93 | = | 4,348,000 | ÷ | 627,367,734 | |
| Feb 15, 2019 | 9.92 | = | 59.26 | ÷ | 5.97 | 5.97 | = | 3,722,800 | ÷ | 623,298,987 | |
| Feb 16, 2018 | 8.18 | = | 44.61 | ÷ | 5.45 | 5.45 | = | 3,435,300 | ÷ | 630,071,124 | |
| Feb 17, 2017 | 6.43 | = | 29.91 | ÷ | 4.65 | 4.65 | = | 2,963,700 | ÷ | 637,487,394 | |
| Feb 19, 2016 | 7.42 | = | 28.74 | ÷ | 3.87 | 3.87 | = | 2,493,700 | ÷ | 643,792,782 | |
| Feb 20, 2015 | 6.24 | = | 22.41 | ÷ | 3.59 | 3.59 | = | 2,322,900 | ÷ | 647,039,508 | |
| Feb 28, 2014 | 3.66 | = | 11.63 | ÷ | 3.18 | 3.18 | = | 2,045,500 | ÷ | 643,443,282 | |
| Feb 28, 2013 | 5.16 | = | 14.32 | ÷ | 2.77 | 2.77 | = | 1,899,600 | ÷ | 684,603,948 | |
| Feb 27, 2012 | 5.04 | = | 12.26 | ÷ | 2.43 | 2.43 | = | 1,678,600 | ÷ | 689,883,180 | |
| Feb 28, 2011 | 6.75 | = | 14.17 | ÷ | 2.10 | 2.10 | = | 1,447,000 | ÷ | 689,104,422 | |
| Feb 26, 2010 | 3.93 | = | 7.65 | ÷ | 1.95 | 1.95 | = | 1,321,400 | ÷ | 678,707,172 | |
| Mar 2, 2009 | 2.41 | = | 4.44 | ÷ | 1.85 | 1.85 | = | 1,237,700 | ÷ | 670,503,156 | |
| Feb 29, 2008 | 2.27 | = | 3.64 | ÷ | 1.60 | 1.60 | = | 1,091,100 | ÷ | 680,278,644 | |
| Mar 1, 2007 | 2.78 | = | 4.15 | ÷ | 1.49 | 1.49 | = | 1,037,000 | ÷ | 694,591,440 | |
| Mar 9, 2006 | 2.48 | = | 3.48 | ÷ | 1.40 | 1.40 | = | 997,900 | ÷ | 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 Price-to-Sales (P/S) ratio exhibits a long-term upward trajectory from 2006 to 2022, indicating a significant expansion in market valuation relative to revenue generation. While sales per share grew consistently and linearly throughout the period, the share price experienced accelerated growth, resulting in a substantial increase in the valuation multiple.
- Revenue and Price Correlation
- Sales per share demonstrated steady growth, rising from 1.40 US$ in 2006 to 8.40 US$ in 2022. During the same period, the share price grew from 3.48 US$ to 107.73 US$. Because the rate of share price appreciation significantly outpaced the rate of revenue growth, the P/S ratio climbed from 2.48 in 2006 to 12.83 in 2022.
- Phase of Relative Stability (2006–2009)
- During the initial four-year period, the P/S ratio remained relatively stable, fluctuating within a narrow range between 2.27 and 2.78. This suggests that market valuation was closely aligned with revenue growth during this phase.
- Period of Volatility and Adjustment (2010–2014)
- A shift in valuation occurred starting in 2010, with the P/S ratio jumping to 6.75 by 2011. This was followed by a period of contraction where the ratio declined to 3.66 by 2014, indicating a temporary market correction or a realignment of expectations relative to sales performance.
- Accelerated Valuation Expansion (2015–2022)
- From 2015 onward, a consistent and aggressive rerating is observed. The P/S ratio rose from 6.24 in 2015 to a peak of 12.83 in 2022. This sustained increase suggests growing investor confidence and a willingness to pay a higher premium for each dollar of sales, reflecting an expansion in the perceived future growth potential of the company.
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Comparison to Competitors
Edwards Lifesciences Corp., P/S, 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 | 12.83 | 4.78 | 0.81 | 17.89 | 5.57 | 1.58 |
| Feb 12, 2021 | 12.48 | 6.30 | 0.60 | 21.29 | 4.36 | 1.24 |
| Feb 14, 2020 | 11.09 | 4.83 | 0.74 | 15.01 | 4.36 | 1.18 |
| Feb 15, 2019 | 9.92 | 4.37 | 0.88 | 16.06 | 3.92 | 1.12 |
| Feb 16, 2018 | 8.18 | 3.84 | 0.67 | 14.97 | 4.06 | 1.10 |
| Feb 17, 2017 | 6.43 | 3.70 | 0.51 | 10.11 | 4.07 | 0.83 |
| Feb 19, 2016 | 7.42 | 2.78 | 0.42 | 8.46 | 5.36 | 0.68 |
| Feb 20, 2015 | 6.24 | 3.53 | 0.54 | 8.80 | 3.74 | 0.80 |
| Feb 28, 2014 | 3.66 | 2.74 | 0.35 | 6.76 | 3.13 | 0.57 |
| Feb 28, 2013 | 5.16 | 1.38 | 0.31 | 10.56 | 2.36 | 0.53 |
| Feb 27, 2012 | 5.04 | 2.27 | 0.37 | 11.00 | 2.60 | 0.55 |
| Feb 28, 2011 | 6.75 | 2.06 | 0.44 | 9.15 | 2.48 | 0.50 |
| Feb 26, 2010 | 3.93 | 2.74 | 0.43 | 12.01 | 2.54 | 0.44 |
| Mar 2, 2009 | 2.41 | 2.83 | 0.33 | 5.14 | 4.30 | 0.43 |
| Feb 29, 2008 | 2.27 | 3.31 | 0.67 | 19.21 | 4.74 | 0.81 |
| Mar 1, 2007 | 2.78 | 3.68 | 0.89 | 11.23 | 4.81 | 1.03 |
| Mar 9, 2006 | 2.48 | 3.02 | 1.14 | 15.19 | 6.30 | 1.78 |
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/S, long-term trends, comparison to sector (health care equipment & services)
| Edwards Lifesciences Corp. | Health Care Equipment & Services | |
|---|---|---|
| Feb 14, 2022 | 12.83 | 2.07 |
| Feb 12, 2021 | 12.48 | 1.86 |
| Feb 14, 2020 | 11.09 | 1.74 |
| Feb 15, 2019 | 9.92 | 1.69 |
| Feb 16, 2018 | 8.18 | 1.58 |
| Feb 17, 2017 | 6.43 | 1.30 |
| Feb 19, 2016 | 7.42 | 1.17 |
| Feb 20, 2015 | 6.24 | 1.23 |
| Feb 28, 2014 | 3.66 | 0.95 |
| Feb 28, 2013 | 5.16 | 0.85 |
| Feb 27, 2012 | 5.04 | 1.04 |
| Feb 28, 2011 | 6.75 | 0.96 |
| Feb 26, 2010 | 3.93 | 1.02 |
| Mar 2, 2009 | 2.41 | 1.08 |
| Feb 29, 2008 | 2.27 | 1.48 |
| Mar 1, 2007 | 2.78 | 1.64 |
| Mar 9, 2006 | 2.48 | 2.17 |
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/S, long-term trends, comparison to industry (health care)
| Edwards Lifesciences Corp. | Health Care | |
|---|---|---|
| Feb 14, 2022 | 12.83 | 3.28 |
| Feb 12, 2021 | 12.48 | 3.31 |
| Feb 14, 2020 | 11.09 | 3.21 |
| Feb 15, 2019 | 9.92 | 3.07 |
| Feb 16, 2018 | 8.18 | 3.06 |
| Feb 17, 2017 | 6.43 | 2.80 |
| Feb 19, 2016 | 7.42 | 2.72 |
| Feb 20, 2015 | 6.24 | 3.08 |
| Feb 28, 2014 | 3.66 | 2.81 |
| Feb 28, 2013 | 5.16 | 2.20 |
| Feb 27, 2012 | 5.04 | 1.90 |
| Feb 28, 2011 | 6.75 | 1.80 |
| Feb 26, 2010 | 3.93 | 2.08 |
| Mar 2, 2009 | 2.41 | 1.70 |
| Feb 29, 2008 | 2.27 | 2.42 |
| Mar 1, 2007 | 2.78 | 2.85 |
| Mar 9, 2006 | 2.48 | 3.17 |
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).