Edwards Lifesciences Corporation (EW): Price and Financial Metrics

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EW Price/Volume Stats

Edwards Lifesciences Corporation (EW) Company Bio

Edwards Lifesciences provides products and technologies to treat structural heart disease and critically ill patients worldwide. It is a manufacturer of heart valve systems and repair products used to replace or repair a patient's diseased or defective heart valve. The company was founded in 1999 and is based in Irvine, California.

EW Price Forecast Based on DCF Valuation

Below please find a table outlining a discounted cash flow forecast for EW, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Edwards Lifesciences Corp ranked in the 20th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Edwards Lifesciences Corp ended up being:

• The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Notably, its equity weight is greater than 90.21% of US equities in the Healthcare sector yielding a positive free cash flow.
• The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately just 8.23% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• EW's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 52.18% of tickers in our DCF set.

For other companies in the Healthcare that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as EW, try MDT, SRDX, MTD, NUVA, and XRAY.