Discounted Cash Flow (DCF) Analysis Levered

Edwards Lifesciences Corporation (EW)

$87.085

-0.36 (-0.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 37.12 | 87.085 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,435.303,722.804,3484,386.305,232.505,825.556,485.817,220.908,039.318,950.48
Revenue (%)
Operating Cash Flow 1,000.70926.801,179.401,054.301,732.101,611.221,793.831,997.152,223.502,475.51
Operating Cash Flow (%)
Capital Expenditure -175.50-241.70-278.40-407.30-329.80-391.39-435.75-485.14-540.12-601.34
Capital Expenditure (%)
Free Cash Flow 825.20685.109016471,402.301,219.831,358.081,512.011,683.371,874.17

Weighted Average Cost Of Capital

Share price $ 87.085
Beta 1.137
Diluted Shares Outstanding 631.70
Cost of Debt
Tax Rate 11.69
After-tax Cost of Debt 2.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.179
Total Debt 690.30
Total Equity 55,011.59
Total Capital 55,701.89
Debt Weighting 1.24
Equity Weighting 98.76
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,435.303,722.804,3484,386.305,232.505,825.556,485.817,220.908,039.318,950.48
Operating Cash Flow 1,000.70926.801,179.401,054.301,732.101,611.221,793.831,997.152,223.502,475.51
Capital Expenditure -175.50-241.70-278.40-407.30-329.80-391.39-435.75-485.14-540.12-601.34
Free Cash Flow 825.20685.109016471,402.301,219.831,358.081,512.011,683.371,874.17
WACC
PV LFCF 1,118.181,141.191,164.661,188.611,213.06
SUM PV LFCF 5,825.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.09
Free cash flow (t + 1) 1,911.65
Terminal Value 26,962.62
Present Value of Terminal Value 17,451.68

Intrinsic Value

Enterprise Value 23,277.39
Net Debt -172.50
Equity Value 23,449.89
Shares Outstanding 631.70
Equity Value Per Share 37.12