Discounted Cash Flow (DCF) Analysis Unlevered

Edwards Lifesciences Corporation (EW)

$87.44

+0.26 (+0.30%)
All numbers are in Millions, Currency in USD
Stock DCF: 27.29 | 87.44 | overvalue

Operating Data

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 (%)
EBITDA 1,140868.701,276.501,039.701,855.201,689.831,881.362,094.592,331.992,596.29
EBITDA (%)
EBIT 1,058.10791.301,187.20932.501,720.401,555.411,731.701,927.972,146.482,389.76
EBIT (%)
Depreciation 81.9077.4089.30107.20134.80134.42149.66166.62185.50206.53
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 1,337.50956.501,516.901,402.601,466.801,858.622,069.282,303.812,564.922,855.63
Total Cash (%)
Account Receivables 462.20537.30599.10602.80664.90793.62883.57983.711,095.211,219.34
Account Receivables (%)
Inventories 554.90607640.90802.30726.70924.831,029.651,146.351,276.281,420.93
Inventories (%)
Accounts Payable 116.60134180.40196.50204.50227.55253.35282.06314.03349.62
Accounts Payable (%)
Capital Expenditure -175.50-241.70-278.40-407.30-329.80-391.39-435.75-485.14-540.12-601.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 87.44
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 9.124
Total Debt 690.30
Total Equity 55,235.85
Total Capital 55,926.15
Debt Weighting 1.23
Equity Weighting 98.77
Wacc

Build Up Free Cash

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
EBITDA 1,140868.701,276.501,039.701,855.201,689.831,881.362,094.592,331.992,596.29
EBIT 1,058.10791.301,187.20932.501,720.401,555.411,731.701,927.972,146.482,389.76
Tax Rate 43.61%5.15%10.25%10.18%11.69%16.17%16.17%16.17%16.17%16.17%
EBIAT 596.68750.561,065.48837.591,519.351,303.831,451.601,616.131,799.302,003.23
Depreciation 81.9077.4089.30107.20134.80134.42149.66166.62185.50206.53
Accounts Receivable --75.10-61.80-3.70-62.10-128.72-89.95-100.14-111.49-124.13
Inventories --52.10-33.90-161.4075.60-198.13-104.82-116.70-129.93-144.65
Accounts Payable -17.4046.4016.10823.0525.7928.7131.9735.59
Capital Expenditure -175.50-241.70-278.40-407.30-329.80-391.39-435.75-485.14-540.12-601.34
UFCF 503.08476.46827.08388.491,345.85743.06996.531,109.481,235.221,375.22
WACC
PV UFCF 681.46838.14855.78873.78892.16
SUM PV UFCF 4,141.32

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.04
Free cash flow (t + 1) 1,402.73
Terminal Value 19,925.09
Present Value of Terminal Value 12,926.21

Intrinsic Value

Enterprise Value 17,067.53
Net Debt -172.50
Equity Value 17,240.03
Shares Outstanding 631.70
Equity Value Per Share 27.29