Discounted Cash Flow (DCF) Analysis Levered
Edwards Lifesciences Corporation (EW)
$69.18
+0.92 (+1.35%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 3,722.80 | 4,348 | 4,386.30 | 5,232.50 | 5,382.40 | 5,918.37 | 6,507.71 | 7,155.74 | 7,868.30 | 8,651.81 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 926.80 | 1,179.40 | 1,054.30 | 1,732.10 | 1,218.20 | 1,559.99 | 1,715.33 | 1,886.14 | 2,073.96 | 2,280.48 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -241.70 | -278.40 | -407.30 | -329.80 | -264.80 | -395.39 | -434.76 | -478.06 | -525.66 | -578.01 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 685.10 | 901 | 647 | 1,402.30 | 953.40 | 1,164.60 | 1,280.57 | 1,408.09 | 1,548.30 | 1,702.48 |
Weighted Average Cost Of Capital
| Share price | $ 69.18 |
|---|---|
| Beta | 1.007 |
| Diluted Shares Outstanding | 624.20 |
| Cost of Debt | |
| Tax Rate | 13.89 |
| After-tax Cost of Debt | 3.66% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.008 |
| Total Debt | 691.30 |
| Total Equity | 43,182.16 |
| Total Capital | 43,873.46 |
| Debt Weighting | 1.58 |
| Equity Weighting | 98.42 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 3,722.80 | 4,348 | 4,386.30 | 5,232.50 | 5,382.40 | 5,918.37 | 6,507.71 | 7,155.74 | 7,868.30 | 8,651.81 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 926.80 | 1,179.40 | 1,054.30 | 1,732.10 | 1,218.20 | 1,559.99 | 1,715.33 | 1,886.14 | 2,073.96 | 2,280.48 |
| Capital Expenditure | -241.70 | -278.40 | -407.30 | -329.80 | -264.80 | -395.39 | -434.76 | -478.06 | -525.66 | -578.01 |
| Free Cash Flow | 685.10 | 901 | 647 | 1,402.30 | 953.40 | 1,164.60 | 1,280.57 | 1,408.09 | 1,548.30 | 1,702.48 |
| WACC | ||||||||||
| PV LFCF | 1,069.23 | 1,079.41 | 1,089.70 | 1,100.08 | 1,110.56 | |||||
| SUM PV LFCF | 5,448.98 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.92 |
| Free cash flow (t + 1) | 1,736.53 |
| Terminal Value | 25,094.33 |
| Present Value of Terminal Value | 16,369.58 |
Intrinsic Value
| Enterprise Value | 21,818.56 |
|---|---|
| Net Debt | -77.70 |
| Equity Value | 21,896.26 |
| Shares Outstanding | 624.20 |
| Equity Value Per Share | 35.08 |