Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Edwards Lifesciences Corp. (NYSE:EW)

Common Stock Valuation Ratios (Price Multiples)

Beginner level

Current Valuation Ratios

Edwards Lifesciences Corp., current price multiples

Microsoft Excel LibreOffice Calc
Edwards Lifesciences Corp. Becton, Dickinson & Co. Boston Scientific Corp. Danaher Corp. Intuitive Surgical Inc. Medtronic PLC Stryker Corp. Thermo Fisher Scientific Inc. UnitedHealth Group Inc. Health Care Equipment & Services Health Care
Selected Financial Data
Current share price (P) $72.91
No. shares of common stock outstanding 623,248,273
Growth rate (g) 22.03%
 
Earnings per share (EPS) $1.68
Next year expected EPS $2.05
Operating profit per share $1.84
Sales per share $6.98
Book value per share (BVPS) $6.66
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 43.41 62.28 10.20 55.59 58.49 28.45 37.04 50.51 20.85 30.89 23.24
Price to next year expected earnings 35.57 60.14 8.94 50.93 50.91 27.52 33.59 46.31 18.13 28.31 21.11
Price-earnings-growth (PEG) 1.97 17.54 0.73 6.06 3.93 8.38 3.61 5.58 1.39 3.38 2.30
Price to operating profit (P/OP) 39.62 38.29 31.57 49.99 58.69 28.44 28.44 40.63 14.66 25.83 20.34
Price to sales (P/S) 10.45 3.90 4.46 9.12 18.01 4.71 5.18 7.31 1.20 2.99 3.92
Price to book value (P/BV) 10.95 3.20 3.45 5.40 9.76 2.69 6.02 6.29 5.01 4.80 5.54

Based on: 10-K (filing date: 2020-02-14).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Edwards Lifesciences Corp., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Price to earnings (P/E) 46.05 51.14 48.16 33.48 37.39
Price to operating profit (P/OP) 42.04 49.37 25.66 25.38 29.11
Price to sales (P/S) 11.09 9.92 8.18 6.43 7.42
Price to book value (P/BV) 11.62 11.76 9.51 7.28 7.39

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Edwards Lifesciences Corp.’s P/E ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Edwards Lifesciences Corp.’s P/OP ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Edwards Lifesciences Corp.’s P/S ratio increased from 2017 to 2018 and from 2018 to 2019.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Edwards Lifesciences Corp.’s P/BV ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Price to Earnings (P/E)

Edwards Lifesciences Corp., historical P/E calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 627,367,734 623,298,987 630,071,124 637,487,394 643,792,782
Selected Financial Data (US$)
Net income (in thousands) 1,046,900  722,200  583,600  569,500  494,900 
Earnings per share (EPS)2 1.67 1.16 0.93 0.89 0.77
Share price1, 3 76.85 59.26 44.61 29.91 28.74
Valuation Ratio
P/E ratio4 46.05 51.14 48.16 33.48 37.39
Benchmarks
P/E Ratio, Competitors5
Becton, Dickinson & Co. 65.09 408.36 49.63 36.65 45.52
Boston Scientific Corp. 11.86 33.06 354.70 96.19
Danaher Corp. 38.34 29.77 27.25 23.02 17.85
Intuitive Surgical Inc. 48.72 53.03 70.95 37.16 34.24
Medtronic PLC 28.78 37.80 29.96 33.17 40.56
Stryker Corp. 39.24 18.96 54.36 27.92 24.92
Thermo Fisher Scientific Inc. 33.36 35.19 37.66 30.45 26.19
UnitedHealth Group Inc. 20.48 21.09 20.77 21.73 18.18
P/E Ratio, Sector
Health Care Equipment & Services 27.57 29.98 31.28 28.43 27.11
P/E Ratio, Industry
Health Care 22.68 25.04 35.39 22.63 20.66

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 1,046,900,000 ÷ 627,367,734 = 1.67

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

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 76.85 ÷ 1.67 = 46.05

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Edwards Lifesciences Corp.’s P/E ratio increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

Price to Operating Profit (P/OP)

Edwards Lifesciences Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 627,367,734 623,298,987 630,071,124 637,487,394 643,792,782
Selected Financial Data (US$)
Operating income (in thousands) 1,146,800  748,200  1,095,500  751,200  635,700 
Operating profit per share2 1.83 1.20 1.74 1.18 0.99
Share price1, 3 76.85 59.26 44.61 29.91 28.74
Valuation Ratio
P/OP ratio4 42.04 49.37 25.66 25.38 29.11
Benchmarks
P/OP Ratio, Competitors5
Becton, Dickinson & Co. 40.02 43.37 34.59 25.02 29.46
Boston Scientific Corp. 36.71 36.68 28.71 74.67
Danaher Corp. 34.47 23.18 22.48 21.37 17.27
Intuitive Surgical Inc. 48.89 49.87 44.40 28.93 27.24
Medtronic PLC 21.26 17.64 22.64 22.18 28.81
Stryker Corp. 30.13 26.55 24.21 21.23 19.27
Thermo Fisher Scientific Inc. 26.84 27.33 28.24 25.13 22.15
UnitedHealth Group Inc. 14.40 14.58 14.42 11.79 9.59
P/OP Ratio, Sector
Health Care Equipment & Services 23.06 21.64 21.05 18.92 18.53
P/OP Ratio, Industry
Health Care 19.85 19.64 19.08 16.21 15.76

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 1,146,800,000 ÷ 627,367,734 = 1.83

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

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 76.85 ÷ 1.83 = 42.04

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Edwards Lifesciences Corp.’s P/OP ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Price to Sales (P/S)

Edwards Lifesciences Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 627,367,734 623,298,987 630,071,124 637,487,394 643,792,782
Selected Financial Data (US$)
Net sales (in thousands) 4,348,000  3,722,800  3,435,300  2,963,700  2,493,700 
Sales per share2 6.93 5.97 5.45 4.65 3.87
Share price1, 3 76.85 59.26 44.61 29.91 28.74
Valuation Ratio
P/S ratio4 11.09 9.92 8.18 6.43 7.42
Benchmarks
P/S Ratio, Competitors5
Becton, Dickinson & Co. 4.07 4.06 4.23 2.87 3.08
Boston Scientific Corp. 5.19 5.62 4.08 3.98 3.13
Danaher Corp. 6.29 3.97 3.70 3.48 2.91
Intuitive Surgical Inc. 15.01 16.06 14.96 10.11 8.46
Medtronic PLC 4.36 3.92 4.06 4.07 5.36
Stryker Corp. 5.49 4.95 4.46 4.06 3.61
Thermo Fisher Scientific Inc. 4.83 4.24 4.01 3.37 3.05
UnitedHealth Group Inc. 1.18 1.12 1.10 0.83 0.68
P/S Ratio, Sector
Health Care Equipment & Services 2.67 2.42 2.30 1.93 1.85
P/S Ratio, Industry
Health Care 3.82 3.59 3.60 3.26 3.19

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Net sales ÷ No. shares of common stock outstanding
= 4,348,000,000 ÷ 627,367,734 = 6.93

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

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 76.85 ÷ 6.93 = 11.09

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Edwards Lifesciences Corp.’s P/S ratio increased from 2017 to 2018 and from 2018 to 2019.

Price to Book Value (P/BV)

Edwards Lifesciences Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
No. shares of common stock outstanding1 627,367,734 623,298,987 630,071,124 637,487,394 643,792,782
Selected Financial Data (US$)
Stockholders’ equity (in thousands) 4,148,300  3,140,400  2,956,200  2,619,000  2,503,100 
Book value per share (BVPS)2 6.61 5.04 4.69 4.11 3.89
Share price1, 3 76.85 59.26 44.61 29.91 28.74
Valuation Ratio
P/BV ratio4 11.62 11.76 9.51 7.28 7.39
Benchmarks
P/BV Ratio, Competitors5
Becton, Dickinson & Co. 3.34 3.09 3.95 4.69 4.42
Boston Scientific Corp. 4.02 6.33 5.26 4.96 3.70
Danaher Corp. 3.72 2.80 2.58 2.56 2.53
Intuitive Surgical Inc. 8.13 8.96 9.91 4.73 4.67
Medtronic PLC 2.66 2.31 2.40 2.25 2.04
Stryker Corp. 6.38 5.74 5.56 4.82 4.21
Thermo Fisher Scientific Inc. 4.16 3.75 3.30 2.86 2.42
UnitedHealth Group Inc. 4.92 4.89 4.59 3.98 3.12
P/BV Ratio, Sector
Health Care Equipment & Services 4.28 3.99 3.79 3.30 2.83
P/BV Ratio, Industry
Health Care 5.41 5.41 4.87 4.33 3.90

Based on: 10-K (filing date: 2020-02-14), 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-16), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-19).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 4,148,300,000 ÷ 627,367,734 = 6.61

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

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 76.85 ÷ 6.61 = 11.62

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Edwards Lifesciences Corp.’s P/BV ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.