Edwards Lifesciences Corp., current enterprise value calculation

Current share price (P)	$107.73
No. shares of common stock outstanding	623,207,437
US$ in thousands
Common equity (market value)¹	67,138,137)
Add: Preferred stock, $.01 par value, no shares outstanding (per books)	—)
Total equity	67,138,137)
Add: Short-term debt (per books)	—)
Add: Long-term debt (per books)	595,700)
Total equity and debt	67,733,837)
Less: Cash and cash equivalents	862,800)
Less: Short-term investments	604,000)
Enterprise value (EV)	66,267,037)

Based on: 10-K (reporting date: 2021-12-31).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 107.73 × 623,207,437

Edwards Lifesciences Corp., EV calculation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Share price^1, 2	$107.73	$87.65	$76.85	$59.26	$44.61
No. shares of common stock outstanding¹	623,207,437	624,518,873	627,367,734	623,298,987	630,071,124
US$ in thousands
Common equity (market value)³	67,138,137)	54,739,079)	48,213,210)	36,936,698)	28,107,473)
Add: Preferred stock, $.01 par value, no shares outstanding (book value)	—)	—)	—)	—)	—)
Total equity	67,138,137)	54,739,079)	48,213,210)	36,936,698)	28,107,473)
Add: Short-term debt (book value)	—)	—)	—)	—)	598,000)
Add: Long-term debt (book value)	595,700)	595,000)	594,400)	593,800)	438,400)
Total equity and debt	67,733,837)	55,334,079)	48,807,610)	37,530,498)	29,143,873)
Less: Cash and cash equivalents	862,800)	1,183,200)	1,179,100)	714,100)	818,300)
Less: Short-term investments	604,000)	219,400)	337,800)	242,400)	519,200)
Enterprise value (EV)	66,267,037)	53,931,479)	47,290,710)	36,573,998)	27,806,373)

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).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of Edwards Lifesciences Corp. Annual Report.

³ 2021 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 107.73 × 623,207,437

A consistent and significant upward trajectory in valuation is observed from December 31, 2017, through December 31, 2021. The growth is reflected across market capitalization and enterprise value, indicating a sustained increase in the perceived market value of the organization over the five-year period.

Market Capitalization Growth: Common equity market value expanded from approximately 28.1 billion US dollars in 2017 to 67.1 billion US dollars by 2021. This represents a total increase of approximately 138.7%, with growth occurring in every consecutive year of the analyzed period.
Enterprise Value Dynamics: Enterprise value followed a similar growth pattern, rising from 27.8 billion US dollars in 2017 to 66.3 billion US dollars in 2021. Notably, the enterprise value remained consistently lower than the market value of common equity throughout the entire period. This discrepancy typically indicates a net cash position, where cash and cash equivalents exceed total debt.
Capital Structure and Leverage: The marginal difference between total equity and the sum of total equity and debt suggests a conservative leverage profile. For instance, in 2021, the gap between total equity (67.1 billion US dollars) and total equity and debt (67.7 billion US dollars) remained minimal relative to the overall size of the balance sheet, indicating that debt plays a limited role in the company's capital structure.
Valuation Correlation: A high degree of correlation is observed between market capitalization and enterprise value. The steady parallel increase in both metrics suggests that the growth in enterprise value was driven primarily by the appreciation of equity value rather than changes in debt levels or significant fluctuations in cash holdings.

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Edwards Lifesciences Corp. (NYSE:EW)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)