Discounted Cash Flow (DCF) Analysis Unlevered

Edwards Lifesciences Corporation (EW)

$69.18

+0.92 (+1.35%)

All numbers are in Millions, Currency in USD

Stock DCF: 38.77 | 69.18 | overvalue

Operating Data

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 (%)
EBITDA	1,390.10	1,330.60	1,735.60	1,483.30	1,829.90	2,010.55	2,210.76	2,430.91	2,672.97	2,939.14
EBITDA (%)
EBIT	1,312.70	1,241.30	1,628.40	1,348.50	1,690.30	1,871.51	2,057.87	2,262.79	2,488.12	2,735.88
EBIT (%)
Depreciation	77.40	89.30	107.20	134.80	139.60	139.04	152.89	168.11	184.85	203.26
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	956.50	1,516.90	1,402.60	1,466.80	1,215.30	1,694.65	1,863.40	2,048.96	2,252.99	2,477.34
Total Cash (%)
Account Receivables	537.30	599.10	602.80	664.90	699.10	800.76	880.49	968.17	1,064.58	1,170.59
Account Receivables (%)
Inventories	607	640.90	802.30	726.70	875.50	940.91	1,034.60	1,137.62	1,250.91	1,375.47
Inventories (%)
Accounts Payable	134	180.40	196.50	204.50	201.90	235.41	258.85	284.62	312.96	344.13
Accounts Payable (%)
Capital Expenditure	-241.70	-278.40	-407.30	-329.80	-264.80	-395.39	-434.76	-478.06	-525.66	-578.01
Capital Expenditure (%)

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

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
EBITDA	1,390.10	1,330.60	1,735.60	1,483.30	1,829.90	2,010.55	2,210.76	2,430.91	2,672.97	2,939.14
EBIT	1,312.70	1,241.30	1,628.40	1,348.50	1,690.30	1,871.51	2,057.87	2,262.79	2,488.12	2,735.88
Tax Rate	5.15%	10.25%	10.18%	11.69%	13.89%	10.23%	10.23%	10.23%	10.23%	10.23%
EBIAT	1,245.12	1,114.03	1,462.66	1,190.91	1,455.51	1,680.03	1,847.33	2,031.28	2,233.55	2,455.97
Depreciation	77.40	89.30	107.20	134.80	139.60	139.04	152.89	168.11	184.85	203.26
Accounts Receivable	-	-61.80	-3.70	-62.10	-34.20	-101.66	-79.74	-87.68	-96.41	-106.01
Inventories	-	-33.90	-161.40	75.60	-148.80	-65.41	-93.69	-103.02	-113.28	-124.56
Accounts Payable	-	46.40	16.10	8	-2.60	33.51	23.44	25.78	28.34	31.16
Capital Expenditure	-241.70	-278.40	-407.30	-329.80	-264.80	-395.39	-434.76	-478.06	-525.66	-578.01
UFCF	1,080.82	875.63	1,013.56	1,017.41	1,144.71	1,290.13	1,415.46	1,556.41	1,711.40	1,881.82
WACC
PV UFCF						1,184.48	1,193.12	1,204.49	1,215.96	1,227.55
SUM PV UFCF										6,025.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.92
Free cash flow (t + 1)	1,919.45
Terminal Value	27,737.75
Present Value of Terminal Value	18,093.94

Intrinsic Value

Enterprise Value	24,119.53
Net Debt	-77.70
Equity Value	24,197.23
Shares Outstanding	624.20
Equity Value Per Share	38.77